The decisions made by companies during bear markets play a critical role in determining their longevity in the cryptocurrency ecosystem. Representing Canadian Bitcoin (BTC) mining company Sato Technologies, COO Fanny Philip revealed what it takes to survive the downside threat as the market prepares for the next uptrend.
Speaking to Cointelegraph during the Surfin’ Bitcoin 2022 event in France about the impact of bear markets on business, Philip said now is the time for mining companies to build and learn.
Sato is a digital asset mining company, listed on the Toronto Stock Exchange (TSXV) since September 2021, and mines both Bitcoin (BTC) and Ether (ETH).
Philip further told Cointelegraph about the initial challenges of establishing himself in the industry despite entering the space during a bull market.
The high demand for miners in the Quebec region where the company was initially established led to a moratorium on new mining facilities and unfriendly sentiments on the part of local residents. Additionally, Philip linked the global pandemic as a catalyst for “difficulties in sourcing electrical equipment.”
Though when asked about the effects of the bear market, Philip had more positive than negative sentiments. Asked if bear markets are a good thing, he replied:
“Build up”? Perfect. The bear market is a market built for us.”
He also commented on the relationship between the price of BTC, mining and the purchase of mining equipment.
“When the price of Bitcoin is low, more is mined,” said Philip. “If you have to [comprar] equipment, as it is linked to the price of Bitcoin, the price of the equipment decreases a lot.”
All these factors mentioned above help companies in the sector to build, and according to Philip, Sato is in the construction phase.
This can be seen in the company’s new agreement with Foundry Digital LLC (Foundry). The two companies have reached an agreement that makes it possible for Sato to host up to 4,300 more miners at Center One in Quebec. All this will be powered by renewable energy.
Sato uses his mining capabilities to mine a small amount of ETH, in addition to his main focus on mining BTC.
When asked about any strategy to face the next Ethereum merger, Philip said that it is time to diversify and know the options.
“What’s going to happen, no one really knows. That’s why we’ve decided to diversify. Mining is our core business, but we develop a lot of applications on top of the Lightning network.”
As a final note, he highlighted that The Merge could be seen as an opportunity to pursue all possibilities to build and earn within the Ethereum ecosystem. “It’s all part of evolution,” Philip concluded.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.