Mining companies change strategies to survive in the new environment
The last year has brought significant changes in the crypto-sphere, forcing all participants to reconsider their views on doing business. BTC miners are no exception. In an attempt to survive the crypto-winter, they are forced to diversify their activities.
The fact that miners will have to discover new areas of activity is evident, in particular, by the changes in their names. Earlier this year, Riot Blockchain changed its name to Riot Platforms, reflecting that the business will become more diversified.
This trend is the opposite of what it used to be when companies instead added "crypto" or "blockchain" prefixes in a bull market that allowed their shares to actively rise. Analyst Chris Brendler calls it a desire to distance itself from the crypto sphere, which has suffered greatly in recent months. How long this trend will last is not yet known. It all depends on its performance.
Another important aspect is that a business built only on mining does not seem so profitable anymore. Companies that are constantly increasing capacity are looking to sell some of it to other industries that need computing capabilities. For example, in the field of AI. BTC miners are also making money from selling power to the grid, and profiting from core markets.
Nevertheless, large-scale diversification can do more harm than good, because it distracts companies from their core business. Chris Brendler believes that in this case, it is more important to focus on your direct work rather than disperse efforts into a new sector.
Brendler thinks that any diversification could be beneficial if not for one very important aspect - BTC miners are in survival mode and spreading their efforts to other areas only weakens their position. If the market were different, there would be far fewer threats to developing activities in new industries.