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Bitcoin Mining Companies Profit Post-Halving
Following Bitcoin’s recent price surge, which was momentarily interrupted by a significant dip, experts suggest that Bitcoin mining companies are set on a stable path post-halving. In January, Cantor Fitzgerald conducted an analysis of the average “all-in” cost to mine one coin for various publicly traded Bitcoin mining firms post-halving in April. At the time, with Bitcoin trading at $40,000, only two out of 13 firms were operating in the profit zone.
Today, at a price of $67,000 per Bitcoin, every firm analyzed, including Marathon Digital (MARA), Riot Platforms (RIOT), and Iris Energy (IREN), would be operating profitably.
Self-Reported Performance and Analysis
Self-reported performance figures from the mining companies further support the positive outlook. Iris Energy, in its February Investor Update, stated that its electricity cost per BTC was $20,158, implying a total cost of approximately $40,000 to mine coins post-halving. This indicates a promising future for long-term buyers of mining stocks, especially after substantial losses following the launch of Bitcoin spot ETFs in January.
While some Bitcoin equity proxies like MicroStrategy (MSTR) and Coinbase (COIN) have managed to recover post-launch, most miners are still struggling amidst concerns surrounding the halving event, impacting the industry as a whole. CleanSpark (CLSK) remains a standout performer, showing a 57% year-to-date increase, aligning closely with BTC gains.
Efficient Mining Practices
CleanSpark, according to both company data and Cantor’s analysis, maintains a low mining cost per coin, projected to stay under $37,000. Anthony Power, CEO of Power Mining Analysis, commended CleanSpark for its rapid growth and effective measures, resulting in a higher stock price.
Power also highlighted Bitdeer as a highly efficient contender in the mining space, being a complete vertically integrated BTC mining company. With various operations, including self-mining fleet, hosting services, cloud-based mining, and ASIC production, Bitdeer’s cash cost per Bitcoin mined was calculated at just $18,319 in the third quarter of 2023. Cantor’s analysis positioned Bitdeer’s post-halving cost per mined coin at $17,744, significantly lower than its competitors.
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