The Bitcoin halving could spell a great deal of pain for Bitcoin miners if the price of BTC fails to surge, though hedging strategies could mitigate this risk.
Eleven of the largest publicly traded Bitcoin (BTC) miners may struggle to mine Bitcoin profitably if the price of BTC fails to increase significantly after the halving, analysts at financial services firm Cantor Fitzgerald have reportedly found.
A Jan. 25 post to X (formerly Twitter) by CleanSpark executive chairman and co-founder Matthew Shultz — which cited research from Cantor Fitzgerald — found that many Bitcoin miners, including Marathon Digital, Riot Platforms and Core Scientific, may come under increased pressure following the Bitcoin halving, as the value of the Bitcoin that the miners receive from their operations may fail to outweigh the costs.
While it’s worth noting that Bitcoin miner revenues are closely linked to the price of Bitcoin, an executive from Luxor states that miners often employ strategies to hedge potential losses that arise from Bitcoin price volatility.
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Source: https://cointelegraph.com/news/bitcoin-miner-major-profitability-cantor-fitzgerald-research