Financial services company Cantor Fitzgerald stated in a research report that after the halving of Bitcoin in April, most mining companies may face losses if the coin price does not significantly increase. However, Bitdeer is most likely to continue to remain profitable.
(Previous summary:
100 days countdown until Bitcoin halving! Reviewing the history of the previous three halvings, will BTC definitely rise?)
(Background information:
Mining companies are hot! UBS, Deutsche Bank… 14 new institutions “buying a lot of Bitdeer” BTDR rose more than 13% in a single month.)
Table of Contents:
Cantor Fitzgerald: Bitdeer Most Likely to Remain Profitable after Halving
Bitdeer Announces Appointment of Wu Jihan as CEO
BTDR Rises 18%
Bitcoin will experience its halving event once every four years in April this year, and investors are eagerly anticipating a surge in BTC after the halving.
However, it is worth noting that Cantor Fitzgerald, a financial services company, recently stated in a research report that if the Bitcoin price 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 the total costs of production and operation with the Bitcoin they mine, making it difficult to profit from mining activities.
At the same time, this also means that these mining companies may be forced to sell BTC to raise funds for their operations, bringing selling pressure to Bitcoin.
Cantor Fitzgerald: Bitdeer Most Likely to Remain Profitable after Halving
According to Cantor Fitzgerald’s research report, calculated at a Bitcoin price of $40,000, they predict that by April this year, the production costs (including all costs) of UK mining company Argo Blockchain, North American mining companies Hut 8 and Marathon Digital, Riot Platforms, Core Scientific, and others will range from $44,000 to $62,000. If the coin price does not significantly increase, these companies may face significant losses.
As for the mining company with the lowest production cost, analysts predict that Bitdeer’s estimated mining cost is $17,744, which is much lower than its industry competitors, allowing it to continue to remain profitable.
(Mining company production costs image)
However, Cointelegraph also pointed out in its report that although many mining companies may not be able to generate profits from mining activities, they typically adopt hedging strategies to deal with Bitcoin price fluctuations, such as purchasing hashpower futures contracts and Bitcoin-related options and derivatives.
Further reading:
National Mining of Bitcoin: Bhutan’s Sovereign Fund Collaborates with Bitdeer, Investing 500 million pounds in cryptocurrency mining
Bitdeer Announces Appointment of Wu Jihan as CEO
Furthermore, on the 29th, Bitdeer announced on its official website that Bitdeer founder and chairman Wu Jihan will assume the position of CEO of the company. The current CEO, Kong Linghui, will transition to the role of Chief Business Officer, and both appointments will take effect from March 1.
Wu Jihan stated:
(Bitdeer stock price image)
(Bitdeer stock price image)
Related reports
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National Mining of Bitcoin: Bitdeer Deploys 23,000 Mining Machines, Estimated to Mine 6 BTCs per day
Mining Companies on Fire! Bitdeer Stock Price Soars 50%, Market Value Reaches a New High of £1.2 billion.