Major Bitcoin mining company CEOs remain optimistic before the upcoming halving event, even though their performance has not surpassed Bitcoin’s year-to-date growth, as indicated by research and trading firm Bernstein.
Gautam Chhugani and Mahika Sapra released a client update on Monday explaining that poor performance was caused by substantial Bitcoin ETF transactions in the U.S., which are drawing out retail investment from mining stock markets. They also expressed concerns about how the upcoming Bitcoin halving might impact miners’ earnings.
In recent talks with Bernstein, Marathon CEO Fred Thiel expressed that mining companies’ stocks have primarily been seen as bitcoin substitutes by the market. Following the introduction of Bitcoin ETFs, a common investment strategy has been to purchase Bitcoin ETFs while selling off miner stocks, which is likely the reason for their poor performance.
After the Bitcoin halving, Zack Bradford, CleanSpark’s CEO, shared with Bernstein his belief that the prices of Bitcoin mining company stocks would increase. The reason being, the more efficient and productive mining companies are expected to thrive post-halving, leaving smaller, less productive miners behind.
Based on Bradford’s prediction, there will be just four significant publicly traded mining companies: CleanSpark, Marathon, Riot Platforms, and Cipher Mining. Thiel allegedly viewed CleanSpark as their chief rival in the race for acquisition targets, sharing a similar sentiment.
During this time, Chhugani and Sapra pointed out that Riot prioritized natural expansion as they believed the market had previously imposed penalties due to the inefficiency and downtime issues with their existing fleet.
Despite currently holding a 1 GW Bitcoin mining capacity, Marathon’s belief in the need for further expansion may shift once it commences operations at its new 1 GW site towards the end of 2024. Lately, Marathon has acquired more Bitcoin mining locations, and CleanSpark aims to double its current capacity by the end of this year.
In approximately five days, or around 800 blocks, the next Bitcoin halving will occur. This event is currently estimated to take place on April 20 at 5:40 a.m. UTC (1:40 a.m. Eastern Time).
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2024-04-15 18:12