To burn you have to dry out the fuel matter and warm it up to its combustion T.
If the air is -50, the fire has to give up enough enthalpy to not just dry up and warm up the wood, but also melt the water in the fuel. That energy cost is huge.
That cold air is dense won’t come close to overcoming the enthalpy of melting and having to dry the fuel.
Also that the air is “dry” is irrelevant at -50C. The air is dry because it can’t hold onto moisture so it won’t dry out the fuel. Also, the water in the fuel is frozen so even if the air was relatively dry there would still be a huge kinetic barrier to sublimation.
But, that might not apply to peat fires because 1) larger, hotter fires make more efficient use of fuel, especially if they are in some insulated space where all the heat is not going straight into the atmosphere and 2) the peat might be dry.
Even on a summer day a good breeze of wind or just blowing into the fire too hard yourself will put it out but only if it was just starting. Once the fire is rooted in something more solid, combustible material it will easily heat up any fresh air that is conveyed into the fire.
Water in fuel is expensive
Additionally, if this fire is mostly underground then it's likely that you've got some oven action going on where a lot of the heat produced by the fire isn't just whisked away by air to dissipate to nothingness - instead it's trapped by the insulation of earth and being converted into phase changes more efficiently.
Wouldn't cold weather amplify the effects of large fires? After all, cold air is more dense, thus provides more of the oxygen necessary to burn hotter. It also has less moisture.