The cryptocurrency market is experiencing a bearish run, and it has given so many companies the opportunity to expand their portfolio.
White Rock CEO Andy Long told Cointelegraph in a recent interview that the crypto bear market provides excellent merger and acquisition (M&A) opportunities.
Long said White Rock is doing well, and its balance sheet is in excellent shape even if there is more volatility to come. He said;
“The bear market has presented challenges for the miners who leveraged up at the top of the market, however, the sector has been here before, and well capitalized and efficient miners will do just fine.”
The White Rock CEO said the ongoing crypto winter would provide key merger and acquisition opportunities for companies with a net positive balance sheet. Long said;
“Bear markets actually present excellent opportunities, so we expect to see M&A and consolidation activity in the mining sector involving both public and private players — to realize economies of scale and combine complementary operations. We’ll also see network growth picking up again, not to the level forecasted at the end of the year, but we’ll likely be at least 20% higher by year-end.”
The United States has become the world’s leading cryptocurrency mining country following the ban on mining activities in China last year.
Long said the Texas mining sector had done well despite the ongoing heatwave. He pointed out that the crypto mining sector’s effective coordination with the Electric Reliability Council of Texas (ERCOT) has been effective in overcoming energy supply issues over the past couple of months. He said;
“There’s a ton of activity in Texas, and the mining sector is in great shape. Grid-connected miners are working with ERCOT to provide demand response during challenging weather, and we see continued growth ahead across the state.”
The cryptocurrency market has been performing well over the past six weeks, with the total market cap closing in on the $1.2 trillion mark.