Analysts at financial services firm Cantor Fitzgerald say that if the price of Bitcoin (BTC) does not rise significantly after the halving, the 11 largest publicly traded Bitcoin (BTC) miners will profitably sell Bitcoin. They reportedly discovered that it could be a pain to mine.
A Jan. 25 post by CleanSpark executive chairman and co-founder Matthew Shultz to It turns out that coin miners could be under more pressure after the Bitcoin outage. The profits that Bitcoin miners receive from their activities may not be able to outweigh their costs, so it could be halved.
*Breaking News – New Features Today!
The whole team, regardless of department, @CleanSpark_Inc We are working on efficiency. Efficiency of uptime, facilities, capital, operations, community involvement, energy, strategy, growth, and other metrics.
Today's latest research report… pic.twitter.com/YgQ6XrIXh2
— S Matthew Schultz (@smatthewschultz) January 25, 2024
It's worth noting that Bitcoin miners' profits are closely tied to Bitcoin's price, but Luxor executives said miners should employ strategies to hedge potential losses arising from Bitcoin price fluctuations. It has been pointed out that there are many
UK-based miner Argo Blockchain (ARBK) and Florida-based Hut 8 Mining have been shown to be most likely to be unprofitable after the halving (at Bitcoin's current price). The “all-in” cost per coin rate is $62,276 and $60,360, respectively.
Latest on January 5th update Regarding its mining operations, Hut 8 reported total reserves of 9,195 BTC, worth $377 million at current prices.
Assuming an average Bitcoin price of $40,000 and no significant change in hashrate, Kantar analysts expect Singapore-based miners to remain profitable after the halving. Only BitDeer and US mining company CleanSpark were involved.
Cantor's “All in Per Coin” metric This refers to the total cost that a Bitcoin miner incurs in producing a single Bitcoin, including electricity costs, hosting fees, and other cash expenditures.
The Bitcoin halving (currently scheduled for April) refers to Bitcoin miners' mining rewards being cut in half.
Many market experts see this reduction in supply as bullish for Bitcoin prices in the long term, but it also means miners with high operating costs could suffer. ing. If the price of Bitcoin does not reach a level that can cover these costs, the situation will only get worse.
Many market commentators also believe that the price of Bitcoin will rise significantly in the months following the halving.
Related: Bitcoin Miner Hat 8 Stocks Tank 23% Amid Accusation From Short Sellers
Dan Rosen, associate director of derivatives at bitcoin mining company Luxor, told Cointelegraph that miners often employ various strategies to hedge their exposure to BTC. This is typically similar to purchasing derivative products such as hash his rate futures contracts or his BTC related options to smooth out potential volatility.
Cointelegraph reached out to several Bitcoin miners named in the report for comment, but did not immediately receive a response.
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