Bitcoin mining firms, including Marathon Digital, Riot Platforms, and Iris Energy, set to thrive as Bitcoin's price surge ensures profitability post-halving.
Analysts suggest that the significant surge in Bitcoin's value—temporarily interrupted by a recent downturn—has established a stable trajectory for Bitcoin mining enterprises following the halving event.
In January, Cantor Fitzgerald approximated the average cost to mine a single coin for numerous publicly traded Bitcoin mining companies post-halving in April. This event will halve miner revenues in BTC terms. At that time, with Bitcoin priced at $40,000, only two out of 13 firms were operating profitably.
However, with today's price surpassing $67,000, all analyzed firms—such as Marathon Digital (MARA), Riot Platforms (RIOT), and Iris Energy (IREN)—would be firmly profitable.
On January 26, 2024, @cantorfitzgerld released their analysis of the 'All-in' cost to mine a #BTC.
The current price of #BTC, exceeding $67,000, indicates profitability for all these miners listed below post-halving in April, provided the #BTC price remains stable… pic.twitter.com/r6NtrSOas0
— Anthony P⭕️wer (@cazenove_uk) March 15, 2024
Reports of performance figures from these miners seem to confirm this outlook.
In their February Investor Update, Iris Energy disclosed its electricity cost per BTC as $20,158, suggesting an expenditure of approximately $40,000 to mine coins after the halving.
This development offers hope for long-term investors in mining stocks, whose investments have suffered since the launch of Bitcoin spot ETFs in January.
While other proxies for Bitcoin equity, like MicroStrategy (MSTR) and Coinbase (COIN), have largely recovered from the initial dip post-launch, most mining companies continue to struggle amidst concerns surrounding the halving.
CleanSpark (CLSK) is one of the few exceptions, boasting a 57% year-to-date increase, roughly aligning with Bitcoin's gains. According to both the company’s data and Cantor’s analysis, CleanSpark's mining cost per coin is projected to remain below $37,000—and potentially even lower.
“CLSK is executing well, experiencing rapid growth, and achieving it through dilution, which is likely the most effective approach,” remarked Anthony Power, CEO of Power Mining Analysis, to Decrypt. “CLSK has expanded by 6.0 exahashes per second (60%) YTD - that's why the stock price is on the rise.”
Power also highlighted Bitdeer as another highly efficient player, describing it as “the fully integrated BTC mining company.” With its self-mining fleet, hosting services, cloud-based mining, and ASIC production, the firm's “cash cost” per Bitcoin mined was just $18,319 as of the third quarter of 2023, according to analysts.
“Cash costs encompass all expenses paid with cash,” he explained. “This excludes depreciation and stock compensation.”
Cantor's January assessment pegged Bitdeer’s cost per mined coin at only $17,744 post-halving, significantly lower than its competitors.