Experts say Bitcoin’s massive price surge (now interrupted by a deep decline) has paved the way for Bitcoin mining companies to be safe after the halving.
Last January, Cantor Fitzgerald estimated the average “all-in” cost to mine one coin from several publicly traded Bitcoin mining companies after the April halving. This will halve miner profits in BTC terms. Bitcoin was trading at $40,000 at the time, leaving only two of the 13 companies in profit territory.
However, at the current price of $67,000, all companies analyzed, including Marathon Digital (MARA), Riot Platforms (RIOT), and Iris Energy (IREN), would be in firm positions.
Performance figures reported directly by miners appear to support this.
Iris Energy said in its February investor update that its electricity cost per BTC was $20,158, implying it would spend about $40,000 to mine the coin after the halving.
This is a promising sign for long-term buyers of mining stocks, whose investments have declined significantly since the launch of the Bitcoin spot ETF in January.
Other Bitcoin stock proxies, such as MicroStrategy (MSTR) and Coinbase (COIN), have recovered significantly from their post-launch declines, but most miners continue to slide as halving fears plague the industry as a whole.
CleanSpark (CLSK) is one of the only exceptions, up 57% year-to-date, roughly matching the gains of BTC itself. both Company’s measures Cantor’s analysis shows that CleanSpark’s per-coin mining costs remain below $37,000 and are likely to go much lower.
“CLSK is doing a good job, growing quickly and doing it through dilution, which is probably the best way to do it,” said Anthony Power, CEO of Power Mining Analysis. decryption. “CLSK grew 6.0 exahashes per second YTD (60%), which is why the stock is higher.”
Power singles out Bitdeer as another highly efficient competitor, calling it a “fully vertically integrated BTC mining company.” Between its own mining rigs, hosting services, cloud-based mining, and ASIC production, the company’s “cash cost” per mined bitcoin was just $18,319 as of the third quarter of 2023, according to analyst calculations.
“A cash expense is anything that has to be paid in cash,” he explained. “Depreciation and stock compensation are excluded.”
According to Cantor’s January estimates, Bitdeer’s cost per mined coin is just $17,744 after halving, well below all its competitors.
Edited by Ryan Ozawa.
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