Are Crypto Mining Companies Bouncing Back After Experiencing A Major Slump?

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Last year could probably be described as tough for crypto miners and investors. The prices for Bitcoin (CRYPTO: BTC) tumbled a number of times throughout 2021.

The Chinese government’s crackdown on cryptocurrency in May was a major blow to the crypto mining industry. Shortly after Chinese authorities announced tough new laws to restrict any form of crypto mining or trading in the country, prices for Bitcoin and other cryptocurrencies such as Ethereum (CRYPTO: ETH) fell.

Ethereum dropped 12% to around $2,747 while the price for Bitcoin declined by 10% to $40,983 in just three hours, according to data from CoinMarketCap. In total, crypto market capitalization fell from $2 trillion to $1.8 trillion, a 10% decline.

Nevertheless, the Chinese government’s ban was perhaps a blessing in disguise for crypto miners outside China. Crypto mining in other countries spiked, leading to a boom in mining revenue globally. According to a report by The Block Research published in January, Bitcoin miners made more than $15 billion collectively in 2021, an increase of 206%. OLB Group Inc. (NASDAQ:OLB) is a fintech/Bitcoin mining company that intends to earn a growing share of the crypto mining pie. Other leading companies in the space include Mawson Infrastructure Group Inc. (NASDAQ:MIGI), Marathon Digital Holdings (NASDAQ:MARA), Riot Blockchain Inc. (NASDAQ:RIOT), and Hut 8 Mining Corp. (NASDAQ:HUT).

Where Is OLB Group In Crypto Mining Operations?

OLB reports that, through its subsidiary DMint, it is engaged in mining Bitcoin using clean energy sources such as natural gas. The company has expanded its role in Crypto as it looks toward the goal of becoming one of the key players in the space.The company inked a long-term lease on a 10,000-square-foot facility in Bradford, Pennsylvania. The facility — OLB’s second — can accommodate up to 2,000 Antminer S19j PRO mining machines. It’s located away from residential areas to eliminate noise complaints.

OLB is turning the facility into a mining data center run on local electricity and natural gas. The company believes the facility will meet the challenge of minimizing its carbon footprint and operating a cost-efficient and profitable operation.

DMint also purchased 400 Antminers S19J PRO machines in November. When the machines are delivered, they will bring the company’s total cryptocurrency mining machines to 1,000. DMint projects a monthly revenue of $1 million (at a price of $42,000 per Bitcoin) after all 1,000 machines are deployed and fully functioning. According to OLB Group CEO Ronny Yakov, the company will order mining machines regularly.

Other Players In The Crypto Mining Space

Mawson Infrastructure Group seems to be gaining momentum after last year’s cryptocurrency turmoil. The company recently announced its current operating power is above 1.0 ExaHash (EH), with an expectation to reach a hashrate of 5 EH in the next 12 months.

Marathon Digital Holdings, a big Bitcoin mining player in North America, declared it produced 461.1 Bitcoins in January, increasing the number of Bitcoin it has to about 8,595.

What Does 2022 Look Like For OLB?

OLB Group reported starting 2022 on a high note with an all-time-high revenue run rate of more than $36 million. This comes after the company acquired a portfolio of Cannabidiol (CBD) merchant accounts last year. The company says its merchant services annual run rate reached a volume of $1.35 billion from 28.5 million transactions.

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Photo by QuinceCreative from Pixabay

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