Bitcoin Mining Becoming Less Profitable Post-Halving
According to a recent report by Cantor Fitzgerald, publicly traded mining companies may face profitability challenges following the next Bitcoin halving event in April 2024. The report analyzed the cost-per-coin of these companies post-halving, assuming a steady Bitcoin price of $40,000. Only two out of the 13 companies were estimated to maintain their profit margins. Bitdeer and CleanSpark were identified as the companies with the lowest cost-per-coin. On the other hand, Argo Mining and Hut 8 Mining were listed with the highest costs. Cantor Fitzgerald’s research included all costs incurred by Bitcoin miners, such as electricity costs and hosting fees.
CleanSpark’s Focus on Efficiency
In response to Cantor’s report, CleanSpark executive chairman Matthew Shultz emphasized that efficiency is the key to their low cost. He stated that the entire team at CleanSpark is committed to efficiency across various departments and metrics.
Bitcoin Price Predictions
Although Cantor’s analysis used a price benchmark of $40,000, Bitcoin is currently trading at $39,932. BitMEX founder Arthur Hayes predicts that Bitcoin will continue to drop and find support in the range of $30,000 to $35,000. Hayes has purchased a Bitcoin put option with a strike price of $35,000, expecting a local bottom in that range. He also speculates that U.S. Treasury Secretary Janet Yellen could impact Bitcoin’s market performance.
Hot Take: Bitcoin Mining Faces Profitability Challenges Post-Halving
As the next Bitcoin halving event approaches, publicly traded mining companies are expected to struggle with profitability. A recent report by Cantor Fitzgerald reveals that only two out of 13 major mining companies would be able to maintain their profit margins post-halving. The analysis considered the cost-per-coin for each company, assuming a steady Bitcoin price of $40,000. Bitdeer and CleanSpark were identified as the most cost-efficient miners, while Argo Mining and Hut 8 Mining faced the highest costs. CleanSpark emphasized their commitment to efficiency as the reason behind their low costs. Meanwhile, Arthur Hayes predicts that Bitcoin will drop further and find support in the $30,000 to $35,000 range.
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