Bitcoin mining is getting less profitable as many publicly traded miners might face potential profitability challenges following the next Bitcoin halving event.
According to a recent report by Cantor Fitzgerald, 11 major mining companies, including Marathon Digital (MARA), Riot Platforms (RIOT), and Bitfarms (BITF), would struggle to make a profit post Bitcoin halving in April 2024.
Non Profitable Mining Business Post Halving
The report analyzed the “cost-per-coin” of the companies post halving with the steady Bitcoin price set at $40,000. Of all the 13 companies, only two were estimated to maintain their profit margins. Bitdeer (BTDR) mines each coin at the lowest cost of $17,744, while CleanSpark (CLSK) keeps the cost-per-coin just below the $40,000 level at $36,896.
Meanwhile, Argo Mining (ARBK) and Hut 8 Mining (HUT) were listed with the highest costs, each calculated at $62,276 and $60,360 respectively.
Cantor Fitzgerald stated that their research “reflects all the costs that a Bitcoin miner would incur in producing a single Bitcoin, including both electricity costs/hosting fees and other cash expenses.”
Responding to Cantor’s report, CleanSpark executive chairman Matthew Shultz expressed in a post that the key to CleanSpark’s low lost is efficiency.
*BREAKING – new today!
No matter the department, the entire team at @CleanSpark_Inc is committed to efficiency. EFFICIENCY of Uptime, Equipment, Capital, Operations, Community Engagement, Energy, Strategy, Growth, and other metrics.
Today’s brand new report from the research… pic.twitter.com/YgQ6XrIXh2
— S Matthew Schultz (@smatthewschultz) January 25, 2024
“No matter the department, the entire team at CleanSpark is committed to efficiency,” said Shultz. “EFFICIENCY of Uptime, Equipment, Capital, Operations, Community Engagement, Energy, Strategy, Growth, and other metrics.”
Arthur Hayes: Bitcoin to Find Support in $30,000~$35,000
Though the analysis established the price benchmark at $40,000, it is trading at $39,932 at the time of writing, down by 0.28% in the past 24 hours according to CoinMarketCap.
In addition, BitMEX founder Arthur Hayes has predicted Bitcoin to continue to drop and eventually find support in the range of $30,000 to $35,000.
In his blog post, Hayes stated that he has purchased a Bitcoin put option with a strike price of $35,000 with an expiration date of March 29.
“I think Bitcoin will find a local bottom between $30,000 and $35,000,” said Hayes.
Hayes also speculated that the U.S. Department of Treasury Secretary Janet Yellen could have an impact on Bitcoin’s market performance.
The post Many Bitcoin Miners Struggle to Make Profits: Cantor Fitzgerald appeared first on Cryptonews.
