The approaching Bitcoin Halving could spell trouble for nine of the 11 largest publicly traded Bitcoin miners, threatening their profitability at a Bitcoin price of $40,000, in what has been termed a forecasted fervor by a recent Cantor Fitzgerald report.
The report reveals a harsh outlook with only Bitdeer (BTDR) and CleanSpark (CLSK) maintaining profit margins, leaving nine other miners requiring a substantially higher price of Bitcoin in order to stay afloat.
With a cost-per-coin rate of $17,774 and $36,896 respectively, Bitdeer and CleanSpark are the exceptions. Argo Blockchain (ARBK) and Hut 8 Mining (HUT) are considered to be in the eye of the storm with an all-in cost-per-coin rate of $62,276 and $60,360, respectively.
Marathon Digital (MARA), Riot Blockchain (RIOT), and Core Scientific (CORZ) are also among those likely to be significantly impacted, leading to a precarious position in the market.
The report painstakingly examines the all-in cost per coin immediately after the halving event in April 2024, assuming no immediate change to operations or network hash. This metric encapsulates the total expenses incurred in producing a single Bitcoin, including electricity costs, hosting fees, and other cash expenses.
On-chain analytics company CryptoQuant spotlighted a strategic move by Bitcoin miners, selling reserves ahead of the Halving event expected around April 22. The report states: “In fact, the flow of Bitcoin from miners to exchanges is now three times higher than the movement from exchanges to miners. This trend signals a strong selling pressure from the mining community.”
Miners are striving to realize profits ahead of a halving event to cover operational costs and prepare for future investments amidst mounting competition in Bitcoin mining with each Halving event.
Entrepreneur and investor Anthony Pompliano delved into the impact of Bitcoin halving on miners in an interview with Marathon CEO Fred Thiel, accentuating the transformative nature of the world today with Spot Bitcoin ETFs approved and the multitude of factors investors need to carefully weigh.
Trader Tardigrade, a crypto content creator on X, raised awareness on the correlation of Bitcoin price movements with the change in reward per block to the miners, setting the stage for an intense period of contemplation among prospective investors.
The impending Bitcoin Halving, recurring every four years, was designed to regulate the supply of new Bitcoin entering circulation, causing analysts to prognosticate price increases amid the tremors of this contentious forecast.
