Analysis Shows Most Public Bitcoin Mining Firms Will Survive The Halving

Analysis Shows Most Public Bitcoin Mining Firms Will Survive The Halving

According to experts, the massive price surge in Bitcoin, which has been interrupted momentarily by a deep dip, is going to work in favor of Bitcoin mining companies after the halving event materializes.

Once the halving takes place in April, miners will see their revenue be reduced by 50% in terms of Bitcoin.

The analysis

Back in January, experts had estimated the average cost of mining one coin for many publicly traded Bitcoin mining companies.

At that time, Bitcoin had been changing hands at $40,000 and only two of the 13 companies had been left in the profit zone as per the calculation.

However, now that Bitcoin’s price is above the $65,000 mark, every Bitcoin mining firm would now be in the green.

These include some prominent names, such as Iris Energy (IREN), Riot Platforms (RIOT) and Marathon Digital (MARA).

The performance figures that have been self-reported by the mining companies also back up this analysis.

Iris Energy issued an Investor Update in February in which it disclosed that the electricity cost of mining one BTC token stood at $20,158.

This implied that after the halving, the company would spend around $40,000 to mine the tokens.

Mining companies

This is certainly a good sign for those who prefer to make investments in mining stocks, as they have suffered hefty losses in their investment after the launch of spot Bitcoin ETFs in January.

There had been a dip after the launch, but Bitcoin equity proxies, such as Coinbase (COIN) and MicroStrategy (MSTR) have managed to make a recovery.

But, the same does not apply to miners, as they have been declining, as fears related to the halving event have plagued the whole industry.

The only exception at this point is CleanSpark (CLSK), which has recorded gains of 57% year-to-date, which is roughly close to the gains recorded in Bitcoin itself.

The company’s analysis, as well as that of experts, shows that its cost per mining is likely to remain below $37,000, or lower.

The prospects

CLSK has been doing things the right way, as the company has managed to record quick growth via dilution, which is probably the best way to go about it.

The stock price of CleanSpark is higher because the company managed to grow about 6.0 exahashes per second year-to-date, which is a 60% growth.

Another highly efficient name is that of Bitdeer, which has proven to be a Bitcoin mining firm that is completely integrated.

The company is offering a variety of services, which include cloud-based mining, hosting services, self-mining fleet, and ASIC production.

Therefore, it was able to reduce its ‘cash cost’ for every Bitcoin mined for the third quarter of the previous year, which stood at around $18,319.

Cash costs are those that do not include stock compensation and depreciation and have to be paid in the form of cash.

In the January estimate, Bitdeer’s cost for every Bitcoin mined after the halving would be around $17,744, which is substantially lower than its rivals.