Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst

The two mining companies at maintain a cost-per-coin rate of $17,774 and $36,896 respectively. Argo Blockchain (NASDAQ:ARBK) and Hut 8 Mining (NYSE:HUT) are seen as the most impacted with an “all in” cost-per-coin rate of $62,276 and $60,360, respectively.

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. 

Also Read: Bitcoin Halving Next Major Catalyst After Spot Bitcoin ETF Approvals, But History Shows BTC Could Dip To $34,000 By April

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.

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 that indicating the correlation of Bitcoin price movements with the change in reward per block to the miners.

 

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.

Read Next: If You Invested $1,000 In Bitcoin At The Last Bitcoin Halving, Here's How Much You'd Have Today

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