Blockware Solutions Media Mentions

Mason Jappa a co-founder of Blockware — a U.S.-based mining and hosting company — told Cointelegraph:

“Our belief is that Ethereum miners have not been heavily affected by the decline in the price of Ethereum. Transaction fees, hash rate, gas usage and mining rewards have been stably increasing. There is currently heavy demand for Ethereum mining rigs, with the price of GPU rigs and ASIC’s at an all-time high. It seems like the market is pricing in a longer transition to the proof-of-stake model.”

Hedge fund manager and CEO of Blockware solutions, Matt D’Souza, recently explained this in a Twitter thread:

“What is fascinating about BTC are the multiple short-term correlations that emerge. We have witnessed strong, short term correlations to Gold, to USD/CNY, and most recently US Equities. this signals an expanded breadth of market participants owning Bitcoin.”

Matt D’Souza, CEO of Blockware Solutions and who also manages a Bitcoin hedge fund, told Cointelegraph:

“Most funds and hodlers, they're not shorting really. All of them are long. Most funds are long only. My fund is long only. I'm managing a 15 million and I'd say we're a decent sized fund. <...> I had a call, MultiCoin two days ago. I had a call with BlockTower last week. So I'm in discussion with all the other funds. And it's everyone for the most part is long-only on Bitcoin.”

“It’s unclear who the miners are without hard evidence, but you can make assumptions of who the players are in the industry that have significant stakes and incentives for BCH to survive,” said Blockware Solutions CEO Matt D’Souza when asked for his thoughts on who would mine the altcoin at a loss. “And they’re willing to mine and support the network as they’re supporting a large stake of BCH coin.”

According to D’Souza, the majority of the miners that stayed on Bitcoin Cash in the immediate aftermath of that network’s halving event were basically activist miners supporting their own personal stake in Bitcoin Cash rather than simply mining the post profitable SHA-256 cryptocurrency.

Matt D’Souza, CEO and co-founder of Blockware Solutions, emphasized this point:

“So you can see potentially twenty-five — thirty-five percent of the network shut off and now twenty five to thirty five percent of the Bitcoin they were receiving, it now goes to whoever survives. So whoever survives is going to do very well. They're going to accumulate a ton of Bitcoin and therefore they don't have to sell as much Bitcoin to pay their electricity bills to buy more machines. More Bitcoin will start getting accumulated by very strong hands, very experienced miners, very efficient miners, rather than being sold to cover expenses.”

However, this can also mean that traders are protecting their long positions on spot markets, including miners, who are inherently long on Bitcoin. Matt D’Souza, CEO of Blockware mining, told Cointelegraph:

“If Bitcoin is further adopted in, mining will likely be more commoditized and institutionalized which will reduce volatility in the price of Bitcoin. Present commodities like gold, oil or soybeans have large, institutional suppliers (Bitcoin miners are the present suppliers). In mature commodities like oil and gold these suppliers hedge their supplier which reduces volatility. This is just starting with Bitcoin. CME futures and options, Bakkt etc. so Bitcoin will mature and volatility will get reduced especially as more institutional players control the supply.”

Grayscale’s results are impressive and show that institutional investors are looking to gain exposure to Bitcoin and other digital assets even during the current climate, where uncertainty and fear are becoming the norm. However, given the current state of affairs, Bitcoin is left for those with a higher risk appetite. Matt D’Souza, CEO of Blockware Solutions and digital currency hedge fund manager, told Cointelegraph, “Markets turn on a dime. If you’re not in when the opportunity presents, you’re too late.” He then added:

Thus, Bitcoin’s halving could force a vast majority of Antminer S9s or any older generation equipment out of the network. According to Blockware Solutions, Antminer S9s make up approximately 30% of the Bitcoin network hash rate — with the vast majority of these being used by miners with kWh prices of $0.03 and above.

This means that if old gen equipment goes dark, there will be a significant drop in difficulty which, in turn, would make mining more profitable for those who stay, as they would get a bigger piece of the new BTC pie. According to Matt D’Souza, the CEO of Blockware Solutions, a crypto mining solutions company, the difficulty drop can even surpass that of the March 12–13 crash. He told Cointelegraph:

“The decrease in difficulty after halving is completely determined on the margins of miners, which the Bitcoin price influences. If Bitcoin is below $9,000, then margins will be poor for miners. If Bitcoin remains at $7,200, then many miners will need to shut off. It will likely be about 27%–35% of the network if Bitcoin remains below 9,000 for several weeks post-halving.”

As explained in a recent report by Blockware Solutions, Bitcoin miners are one of the key players in the industry, collectively assuring the issuance of new coins and “distributing” them by selling each for fiat on exchanges. Miners are incentivized to liquidate their new coins to pay for operation costs like hosting and electricity. Every month, 54,000 BTC are mined which equals approximately $332 million at current prices.

While the mining difficulty seems like the catalyst for the subsequent price move, it is rather a consequence of Bitcoin mining operations shutting down and increasing sell pressure to stay afloat. Mining difficulty is regulated by the total network hash rate, which means that if a lot of miners leave the network, then the difficulty reduces drastically.

However, Matt D’Souza, co-founder and CEO of crypto mining hardware broker Blockware Solutions, believes that Canaan had to move its sale to the U.S. due to greater customer demand, not more lax regulatory principles:

“I don’t believe they were denied by the exchange but rather investors in that region were uninterested in investing in the IPO. Shanghai, Hang Seng indexes have been in downtrends and peaked in 2018, so China has been in a bear market for 2 years. Only the best stocks get their IPOs filled.”