Whereas its client Marathon Digital Holdings Inc. was reliant on third parties for electricity, Beowulf had direct access to power in what could be a profitable play if it was to start mining Bitcoin itself.
And with lower operational risks and wider profit margins, energy firms are becoming a major force in crypto. “If you are buying power from a producer and paying a third-party operator to manage the data centre, you are going to have lower margins than those that do it themselves,” Beard said. “It is not only the efficiency from the commercial perspective but it is from a risk perspective where we are better built to handle the downside,” Prager said.
The Bitcoin network is programmed to give a fixed number of rewards in the token when miners successfully processes a block. But another advantage energy-turned Bitcoin miners might enjoy over peers is their willingness to sell the Bitcoin they mine, unlike some crypto enthusiasts promoting the hodl, or “hold on for dear life” mantra.