The Bitcoin halving is scheduled to take place in the next few days, which will cut miners' main source of income in half. It may sound scary, but analysts say large publicly traded miners are well-positioned to survive and grow through the halving, given the recent weakness in mining stocks. Investors may be eyeing a big opportunity. “Bitcoin prices above $60,000 to $65,000 means halving risk is gone for almost all public miners,” Needham analyst John Todaro said in a note to clients on Tuesday. I think so,” he said. Todaro said it currently costs miners between $36,000 and $52,700 to mine one Bitcoin. Bitcoin, on the other hand, is still trading above $61,000, even after falling sharply last weekend. “With Bitcoin hovering near all-time highs, miners are seeing attractive margins,” the analyst added. “For margins to compress significantly, either Bitcoin price would have to fall below $50,000 or the hashrate would have to increase significantly. [to] EH+. The hash rate, measured in exahash and currently around 623, is used to determine the mining difficulty of the Bitcoin network. The higher the rate, the more the miner will have to spend. Mining stocks have fallen this year, with investors looking ahead to profits. Marathon Digital, Riot Platform, CleanSpark, Iris Energy, and Cipher Mining all surged around 300% to 600% in 2023 before falling into the red amid Bitcoin volatility. Miners are increasing their exposure to Bitcoin prices. Behavior has become more volatile since the launch of Bitcoin exchange-traded funds introduced more leverage into the market, but the price of Bitcoin has nevertheless more than doubled in the past year. , which is up 110%, which is helping miners' investment efforts. “Large public miners are in a much better position now than in previous cycles and are increasing their Bitcoin reserves,” said Mike Colonese, an analyst at HC Wainwright. This half-life creates even more liquidity. Additionally, many large companies have placed large purchase orders with Bitmain. [and] Coronase's top candidates for halving are CleanSpark and Iris Energy due to their high efficiency. According to JPMorgan, CleanSpark mined the most Bitcoin per exahash in March. Mr. Todaro emphasized. “I prefer low-cost Bitcoin producers,” he said, noting that Riot, Cipher, and BitDeer each have a halving that occurs every 210,000 blocks mined, or about every four years, and that Bitcoin's new cycle begins, setting the stage for a new bull market. However, this year we are in the current cycle where Bitcoin is already nearing the halving, hitting a new all-time high in March, which puts Bitcoin close to the threshold reached before the halving. It was pushed up to. Miners create a really healthy economy,” Colonese said. —CNBC's Michael Bloom contributed reporting.
