The Bitcoin BTC/USD Halving in April could make nine of the 11 largest publicly traded Bitcoin miners unprofitable at a Bitcoin price of $40,000, according to a new Cantor Fitzgerald report.
9 of 11 Largest Miners at Risk
A preview of the report sees only Bitdeer BTDR and CleanSpark CLSK maintain profit margins, with nine other mining possibly requiring a significantly higher price of Bitcoin. The two mining companies at maintain a cost-per-coin rate of $17,774 and $36,896 respectively. Argo Blockchain ARBK and Hut 8 Mining HUT are seen as the most impacted with an “all in” cost-per-coin rate of $62,276 and $60,360, respectively. Marathon Digital MARA, Riot Blockchain RIOT, and Core Scientific CORZ are also among those likely to be impacted significantly.
Immediate Impact and Historical Context
The report analyzes the all-in cost per coin immediately after the halving event in April 2024, assuming no immediate change to operations or network hash. The all-in-per-coin metric indicates the total costs a Bitcoin miner would incur in producing a single Bitcoin, including electricity costs, hosting fees, and other cash expenses.
Strategic Selling Ahead of Halving
On-chain analytics company CryptoQuant highlighted that Bitcoin miners are selling reserves ahead of the Halving event expected around April 22. Terming it as a strategic move, the report states: “In fact, the flow of Bitcoin from miners to exchanges is now three times higher than the movement from exchanges to miners. This trend signals a strong selling pressure from the mining community.” Miners aim to realize profits ahead of a halving event to cover operational costs and prepare for future investments amidst rising competition in Bitcoin mining with each Halving event.
Impact on Miners and Bitcoin Price
Entrepreneur and investor Anthony Pompliano discussed the impact of Bitcoin halving on miners in an interview with Marathon CEO Fred Thiel. He said the world today with Spot Bitcoin ETFs approved is different and investors need to consider various factors. Trader Tardigrade, a crypto content creator on X, highlighted a chart indicating the correlation of Bitcoin price movements with the change in reward per block to the miners.
The Purpose of Bitcoin Halving
The Bitcoin Halving occurs every four years and was designed to control the supply of new Bitcoin entering circulation. The supply contraction causes analysts to predict price increases.
