The selections made by firms throughout bear markets play a pivotal function in figuring out their longevity in the crypto ecosystem. Representing Canadian Bitcoin (BTC) mining agency Sato Technologies, COO Fanny Philip revealed what it takes to survive the bearish loom as the market prepares for the subsequent bull run.
Speaking to Cointelegraph throughout the Surfin’ Bitcoin 2022 occasion in France about the affect of bear markets on enterprise, Philip stated now is the time for mining firms to build and study.
Sato is a digital property mining firm, publicly traded on the Toronto Stock Exchange (TSXV) since Sept. 2021 and mines each Bitcoin (BTC) and Ether (ETH).
Philip additional advised Cointelegraph about the preliminary challenges of establishing in the business regardless of coming into the house throughout a bull market.
The excessive demand for miners in the Quebec area of operation, the place the firm initially arrange store, prompted a moratorium on new mining amenities and unfriendly sentiments from the native residents. Moreover, Philip associated the international pandemic as a catalyst for “difficulties in sourcing electrical equipment.”
Related: Crypto in Canada: Where are we today, and where are we heading?
Though when asked about the effects of the bear market, Philip had more positive sentiments than negative ones. When asked if bear markets are a good thing, she answered:
“To build? Perfect. Bear market is a built market for us.”
She additionally commented on the relationship between the worth of BTC, mining and buying mining tools.
“When the price of Bitcoin is low, you mine more,” Philip stated. “If you have to [purchase] equipment, since it’s linked to the price of the Bitcoin, the price of the equipment decreases a lot.”
All of these factors mentioned above help companies in the industry build, and according to Philip, Sato is in the building phase.
This can be seen in the company’s brand new agreement with Foundry Digital LLC (Foundry). The two companies struck a deal that makes it possible for Sato to host up to an additional 4,300 miners at Center One in Québec. All of which will be powered by renewable energy.
Sato uses its mining capabilities to mine a small amount of ETH in addition to its primary focus on BTC mining.
When asked about any strategies to face the upcoming Ethereum Merge, Philip said it’s the time to diversify and learn about options.
“What’s going to happen, nobody really knows. That’s why we decided to diversify. Mining is our core business but we develop a lot of applications on top of the Lightning Network.”
On an end note, she highlighted that The Merge could be seen as an opportunity to look at all possibilities to build and earn within the Ethereum ecosystem. “It’s all part of the evolution,” Philip concluded.
