Crypto Strategist Predicts Mining Stock Bloodbath 😱

The Impending Bitcoin Halving Impact on US-Based Miners

The upcoming Bitcoin halving could significantly impact the share prices of high-cost US-based public miners, with some potentially forced to relocate overseas. According to a report by Cointelegraph, Jaran Mellerud, founder of Hashlabs Mining, warns of a “mining stock bloodbath” if Bitcoin’s price does not increase substantially post-halving.

Mellerud predicts a crucial three to four-month window after the halving to assess the impact of decreased block rewards on miners’ profitability.
The April 24th halving event will reduce Bitcoin miner payouts from 6.25 BTC to 3.125 BTC.
If the historical pattern of Bitcoin price surges post-halving does not occur, many miners with high operating costs may need to shut down.

Impact on US-Based Miners

So many US-based miners hosted at $0.07 and above will become unprofitable following the halving. This could potentially lead to a shift in Bitcoin’s hash rate away from the US towards countries with lower electricity costs, such as those in Africa and Latin America.

In-depth Analysis

The concerns regarding US publicly listed miners were highlighted in a Cantor Fitzgerald analysis in January, which mentioned the risks if Bitcoin’s price remained around $40,000 post-halving. With Bitcoin currently around $51,000, the initial risk seems to be partially mitigated.

Blockware Solutions mining analyst Mitchell Askew believes most US public miners can operate profitably due to low energy costs.
Even if some miners become unprofitable, their impact on the overall hash rate is expected to be minimal.
Practical factors might discourage the relocation of miners overseas.

Potential Migration of Mining Activity

Ethiopia, Nigeria, and Kenya in Africa, along with Argentina and Paraguay in South America, are seen as prime locations for increased mining activity if a hash rate migration occurs away from the US.

Hot Take: Are You Prepared for the Impending Mining Crisis?

The upcoming Bitcoin halving poses a significant risk to high-cost US-based public miners. It is essential to monitor Bitcoin’s price post-halving and assess the impact on miners’ profitability to make informed decisions about potential relocations.