Head of US Global Investors predicts a mass shutdown of miners if the rate of BTC declines

Frank Holmes believes that once bitcoin mining reaches the $12 000 mark, it will become unprofitable

20.10.2022 - 14:30

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What’s new? According to Frank Holmes, CEO of US Global Investors, the threshold bitcoin price below which miners can cease operations is $12 000. In an interview with Benzinga, he said that under such a scenario, mining the asset will become unprofitable. The entrepreneur believes that if the rate of BTC decreases, private miners will start to shut down their rigs. As of October 20, 13:35 UTC, the asset is trading at $19 163, having lost 0,2% in a day, according to the cryptocurrency exchange Binance.

Interview with Benzinga

What is known about US Global Investors? The company was founded in 1968. It is headquartered in Texas. Shares of US Global Investors are trading on the Nasdaq Stock Exchange under the ticker GROW at $2,75 per share (-0,36%), according to Investing.com.

On October 10, bitcoin's mining difficulty renewed its all-time low at 35,61 T, with the average hashrate rising to 263,5 EH/s. On October 17, miners were unable to mine a block of bitcoin for 85 minutes, compared to the average of 10 minutes allowed by the algorithm. According to the Bitcoin Mining Council's Q3 report, the network's power consumption increased by 41% over the year. The organization believes this could lead to increased regulation of the industry.

Earlier, InTheMoneyStocks.com chief market strategist and trader Gareth Soloway allowed for a further bitcoin correction, noting that in a “worst-case scenario,” the asset's price could fall to the $3500 mark.

To learn how the growth of bitcoin's hashrate is affecting miners, see GetBlock Magazine's article.

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