Financial services company Cantor Fitzgerald stated in a research report that most mining companies may face losses if the price of Bitcoin does not significantly increase after the halving in April. However, Bitdeer is the most likely to continue to remain profitable.
Summary:
Countdown to the Bitcoin halving, will BTC rise as it did in the past three halvings?
Additional Background:
Miners are booming! 14 new institutions, including UBS and Deutsche Bank, “buying Bitdeer” BTDR with a monthly increase of over 13%.
Table of Contents:
Cantor Fitzgerald: Bitdeer Most Likely to Remain Profitable After Halving
Bitdeer Announces Appointment of Jason Wu as CEO
BTDR Rises 18%
Bitcoin will experience its once-in-four-years halving event in April this year, and investors are eagerly anticipating a surge in BTC’s value after the halving.
However, it is worth noting that financial services company Cantor Fitzgerald recently stated in a research report that if the price of Bitcoin does not significantly increase after the halving, many Bitcoin mining companies, including Marathon Digital, Riot Platforms, and Core Scientific, will find it difficult to cover their total production and operational costs with the Bitcoin they mine, making it difficult for them to profit from mining activities.
At the same time, this also means that these mining companies may be forced to sell BTC to raise operational funds, creating selling pressure on Bitcoin.
Cantor Fitzgerald: Bitdeer Most Likely to Remain Profitable After Halving
According to Cantor Fitzgerald’s research report, based on a Bitcoin price of $40,000, they predict that by April of this year, the production costs (including all costs) of UK mining company Argo Blockchain, North American mining company Hut 8, and Marathon Digital, Riot Platforms, Core Scientific, and other mining companies will range from $44,000 to $62,000. If the price does not increase significantly, these companies could face significant losses.
As for the mining company with the lowest production cost, analysts predict that Bitdeer’s estimated mining cost is $17,744, far lower than its industry competitors, allowing it to continue to maintain profitability.
Mining Company Production Costs
However, Cointelegraph also pointed out in its report that although many mining companies may not generate profits from mining activities, they usually adopt hedging strategies to cope with Bitcoin price fluctuations, such as purchasing hash rate futures contracts and Bitcoin-related options and derivatives.
Further Reading:
Country Mining Bitcoin: Bhutan’s Sovereign Fund Collaborates with Bitdeer, Betting 500 million pounds on cryptocurrency mining
Bitdeer Announces Appointment of Jason Wu as CEO
In addition, Bitdeer announced on its official website yesterday (29th) that Jason Wu, the founder and chairman of Bitdeer, will assume the position of CEO, while the current CEO, Kong Linghui, will transition to the role of Chief Operating Officer. Both appointments will take effect from March 1.
Jason Wu commented on this:
BTDR Rises 18%
Perhaps influenced by the halving event and Jason Wu’s personal involvement in leading Bitdeer, according to Google Finance data, Bitdeer’s stock BTDR closed at $8.99 earlier, with a daily increase of over 18%.
Related Reports:
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Mining Companies Soar! Bitdeer’s Stock Price Surges 50%, Market Value Exceeds £1.2 billion, Reaching New Highs