According to CoinDesk, brokerage firm Bernstein stated in a research report on Monday (15th) that Bitcoin mining companies may not perform as well as cryptocurrencies this year, but the CEOs of these mining enterprises remain optimistic as the upcoming halving event strengthens their balance sheets.
Analysts Gautam Chhugani and Mahika Sapra wrote that the underperformance of mining stocks is due to the strong performance of Bitcoin spot and ETF, which have drawn away the “retail liquidity” from mining stocks, as well as concerns about the impact of halving on miners’ income.
Bernstein interviewed the CEOs of Riot Platforms (RIOT), CleanSpark (CLSK), Marathon Digital (MARA), Cipher Mining (CIFR), and Hut 8 (HUT), and stated that these companies have relatively abundant financial conditions in this cycle, allowing them to better withstand the impact of halving. The CEOs pointed out the “historically high dollar income for miners, providing a solid buffer before halving” and the “relatively low debt on the balance sheet.”
Industry Consolidation
Some CEOs also emphasized the possibility of mining industry consolidation. The Bernstein report stated:
The report pointed out that another notable change is the applications and Layer 2 development on the Bitcoin blockchain, which increases network costs, and these costs flow as incremental revenue to miners. The report also added that Riot and CleanSpark are expected to double their capacity by the end of this year, which will offset any impact from halving.
Related Reports:
– “Bitcoin Inventory of Miners Drops to Lowest Level Since Early 2021, What Does This Mean for Shipments?”
– “Cantor Fitzgerald Report: 11 Listed Mining Companies May Struggle to Profit from Mining Business After Bitcoin Halving”
– “Bitcoin Halving Prompts Large Number of Old Mining Machines to Move Out of the United States, Primarily to Africa and South America”
