Analyst Says BTC Miners Might Face Trouble in Booking Profits 

An analyst at Cantor Fitzgerald stated that eleven leading publicly traded Bitcoin miners are expected to face a barrier to book project, if Bitcoin price does not experience a significant increase after the successful completion of the most awaited event – Bitcoin’s 4th halving. 

The co-founder and executive chairman of CleanSpark, Matthew Shultz reposted a post of the Bitcoin News ‘X’ account, that highlights concern for leading miners like Marathon Digital, Riot Platform and Core Scientific that their mining cost may no longer cover their cost. 

However, it is largely claimed that BTC miners revenue is directly affected by the price volatility in the Bitcoin price. An executive at Luxor claims that giant miners use dozens of techniques to avoid losses due to volatility. 

The report further suggests that two leading companies Argo Blockchain and Hut8 coil be the most vulnerable following the halving event with “all in” cost-per-coin rate of $62,276 & $60,360 respectively. 

Hut 8, a Florida-based crypto miner revealed that it held 9,195 Bitcoins, which is worth around $391 Million (as of writing).

Also, the report by analysts claims that only Bitdeer, a Singapore-centered crypto miner and CleanSpark, a leading mining firm based in the United States will maintain portability after the successful completion of upcoming Bitcoin halving event.    

After the halving the reward will be halved and if the price does not reflect a major movement then several firms also start selling major chunks held by them. It is crucial to note that before the ban in 2021, China was the hotspot of the Bitcoin and other crypto miners. 

In the past few weeks, Bitcoin prices were trading below $40k, but since the past few hours a major movement in the trading price of BTC is seen. When writing, the pioneer of the crypto market was trading at $42,624 with an intraday growth of 2.12%.

Major Crypto Mining Hubs Globally 

In terms of Bitcoin mining, Bhutan was in the spotlight recently as it became one of the leading nations in terms of allowing Bitcoin mining. Notably, China, the global technological giant, was a top destination for mining companies before the government’s stance on crypto turned hostile.

On September 28, 2023 a leading crypto media outlet reported that Bhutan became home to a massive new 100 MW crypto mining data center. Texas is the second most preferred place for BTC miners, owing to relatively relaxed rules and regulations.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.