- Mining stocks have underperformed bitcoin this year.
- The CEOs of these companies remain upbeat ahead of the halving citing stronger balance sheets, the report said.
- Some CEOs noted the potential for consolidation in the sector, Bernstein said.
In simpler terms, the poor performance is due to significant price swings in bitcoin and ETFs, drawing investment from mining companies, and fears about how the halving could affect miners’ earnings, according to analysts Gautam Chhugani and Mahika Sapra.
Every four years, the rewards given to miners for adding new blocks to the Bitcoin blockchain get cut in half. This process, called a “halving,” slows down the increase in the total number of Bitcoins in circulation. The next halving is predicted to occur around April 19-20.
The broker spoke with the CEOs from Riot Platforms (RIOT), CleanSpark (CLSK), Marathon Digital (MARA), Cipher Mining (CIFR), and Hut 8 (HUT). These companies are financially stable during this cycle, making them more resilient to the effects of the upcoming halving, according to Bernstein.
CEOs are highlighting record-breaking mineral dollar revenues, ensuring a strong position for miners prior to the upcoming halving. Additionally, they mentioned that the company’s debt levels remain relatively low.
Some of the CEOs highlighted the potential for miner consolidation, the report said.
The CEO of CleanSpark is predicting that the cryptocurrency mining industry will eventually be dominated by just four major players: RIOT, MARA, CLSK, and CIFR. According to another report, the CEO of MARA likewise sees industry consolidation on the horizon and identified CLSK as their primary competitor in the hunt for acquisition targets.
This report highlights a significant development in the Bitcoin blockchain recently: the focus on application and layer 2 improvements, resulting in higher network fees for users. These fees represent additional income sources for miners.
According to the report, both Riot and CleanSpark are projected to increase their capacities twice as much by the year-end, thereby counteracting any potential effects of the cryptocurrency halving.
Read more: Bitcoin Halving Has Crypto Miners Racing for ‘Epic Sat’ Potentially Worth Millions
Read More
- WLD PREDICTION. WLD cryptocurrency
- BTC EUR PREDICTION. BTC cryptocurrency
- ZBC/USD
- Top gainers and losers
- MEME PREDICTION. MEME cryptocurrency
- PRMX PREDICTION. PRMX cryptocurrency
- AGLD PREDICTION. AGLD cryptocurrency
- Brent Oil Forecast
- PRISMA PREDICTION. PRISMA cryptocurrency
- ICP PREDICTION. ICP cryptocurrency
2024-04-16 10:53