11 Bitcoin Miners That May Not Halve My Profits: Cantor Fitzgerald

If the price of BTC fails to rise significantly after the halving, 11 major BTC miners may struggle to mine Bitcoin, according to analysts at financial services firm Cantor Fitzgerald.

In a January 25 post to X from CleanSpark Executive Chairman and Co-Founder Matthew Schultz – citing research from Cantor Fitzgerald – many Bitcoin miners, including Marathon Digital, Riot Platforms and Core Scientific, have found that they may be under pressure following Bitcoin. By halving, Bitcoin miners are unable to balance their income from their work.

*BREAKING – NEW TODAY!

No matter the department, the entire team at @CleanSpark_Inc is committed to efficiency. Effectiveness of spare time, equipment, capital, operations, community involvement, energy, strategy, growth and other metrics.

Today's new report from the research… pic.twitter.com/YgQ6XrIXh2

— Smatthew Schultz (@smatthewschultz) January 25, 2024

UK-based miner Argo Blockchain (ARBK) and Florida-based mining Hut 8 have been shown to be worthless after the halving (at current Bitcoin prices) of the coin's value. $62,276 and $60,360 respectively.

In its latest mining activity on January 5th, Hat8 reported that its total reserves stood at 9,195 BTC and reached $377 million at the current price.

The only firms Cantor analysts expect to maintain profitability following the halving – assuming an average price of 40,000 bitcoins and no change in the hash rate – are Singapore-based miner BitDeer and US mining company CleanSpark.

Cantor's “all in one penny” measure refers to the total cost of a Bitcoin miner to produce one Bitcoin, including electricity costs, hosting fees and other financial costs.

The Bitcoin halving – currently scheduled for April – refers to the halving of mining rewards for Bitcoin miners.

While many market analysts see this supply reduction as a bump in Bitcoin's long-term value, it also means that mines with high operating costs could suffer. This will only get worse if the price of Bitcoin cannot reach a level that covers these costs.

Many market analysts also believe that Bitcoin will experience a price jump in the months following the halving.

Related: Bitcoin Miner Hat 8 Stock Tanks 23% From Short Sellers Allegations

While the income of Bitcoin miners is closely tied to the price of Bitcoin, it is important to note that miners often use strategies to hedge against potential losses due to Bitcoin price volatility.

Dan Rosen, co-director of derivatives at Bitcoin miner Luxor, told Cointelegraph that miners often use different strategies to hedge their exposure to BTC. This typically looks like buying hybrid products like hash rate futures and BTC-related options to try and smooth out any potential volatility.

Cointelegraph reached out to several Bitcoin miners listed in the report for comment, but did not immediately receive a response.

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