Home Markets Bear market uncertainty is perfect time to build and learn, says Sato executive

Bear market uncertainty is perfect time to build and learn, says Sato executive

Bear market uncertainty is perfect time to build and learn, says Sato executive

Decisions made by companies during bear markets play a central role in determining their longevity in the crypto ecosystem. Representing the Canadian Bitcoin (BTC) mining company Sato Technologies, COO Fanny Philip revealed what it takes to survive the downside as the market prepares for the next bull run.

Speaking to Cointelegraph at the Surfin’ Bitcoin 2022 event in France on the impact of bear markets on business, Philip said now is the time for mining companies to build and learn.

Sato is a digital asset mining company, listed on the Toronto Stock Exchange (TSXV) since September 2021 and mines both Bitcoin (BTC) and Ether (ETH).

Philip further explained to Cointelegraph the initial challenges of setting up in the industry despite entering the space during a bull market.

The strong demand for miners in the Québec operating region, where the company initially set up shop, caused a moratorium on new mining facilities and hostile feelings from local residents. Additionally, Philip described the global pandemic as a catalyst for “electrical equipment supply difficulties”.

Related: Crypto in Canada: Where are we today and where are we headed?

Although asked about the effects of the bear market, Philip had more positive feelings than negative ones. When asked if bear markets are a good thing, she replied:

“Build? Perfect. The bear market is a built market for us.

She also commented on the relationship between the price of BTC, mining, and buying mining equipment.

“When Bitcoin price is low, you mine more,” Philip said. “If you must [purchase] equipment, since it is tied to the price of Bitcoin, the price of equipment goes down a lot.”

All these factors mentioned above help companies in the sector to grow and, according to Philip, Sato is in the construction phase.

This can be seen in the company’s brand new agreement with Foundry Digital LLC (Foundry). The two companies have reached an agreement that allows Sato to host up to 4,300 additional miners at Center One in Quebec. All powered by renewable energy.

Sato uses his mining abilities to mine a small amount of ETH in addition to his main focus on BTC mining.

Asked about strategies to deal with the upcoming Ethereum meltdown, Philip said it’s time to diversify and learn about options.

“What will happen, no one really knows. That’s why we decided to diversify. Mining is our core business, but we develop many applications in addition to the Lightning Network.”

In conclusion, she pointed out that The Merge can be seen as an opportunity to look at all the possibilities to build and earn within the Ethereum ecosystem. “It’s all part of evolution,” concluded Philip.