In the current crypto bear market, miners have been battered due to the depreciation of digital assets, leaving many operations struggling to generate profit. In some cases, miners have been forced to exit the business altogether. In their absence, a number of experienced miners are capturing the bulk of the market share, according to one expert. 

Crypto Winter Is Taking Its Toll

This year, a number of mining operations have closed globally and around tens of thousands of mining rigs have been shut down in China. However, the bear market has ignited a wave of creativity among resourceful market participants, allowing their mining operations to thrive by capitalizing on new cost-efficient strategies.

Matt D'Souza, co-founder of Blockware Solutions and a consultant at KPMG based in Chicago, also operates one of the largest mining pools for Aion Network. D'Souza acknowledges that while the bear market has caused many facilities to close shop, experienced miners are getting creative and capturing greater market share.

It is the miners who built inefficient and large indoor facilities a few years ago and bought mining rigs Q3 2017 – Q2 2018 that are in trouble. D'Souza explains that the mining market participants currently going out of business most likely purchased rigs and signed hosting contracts between Q4 2017 and Q2 2018 while BTC was trading over $9,000. Within that timeframe, S9s sold for over $2,000, and a two-year hosting contract averaged $120+ per S9 per month.