Bitcoin Hashrate to Drop by 20% After Next Halving Event: JPMorgan
JPMorgan has predicted a potential 20% drop in the Bitcoin (BTC) Network Hashrate following the next halving event scheduled for April 2024.
"We estimate as much as 80 EH/s (or 20% of the network hashrate) could be removed at the next halving (April '24) as less-efficient hardware is decommissioned," the report said.
The Bitcoin halving occurs every four years and involves a halving of rewards for Bitcoin miners.
The report also mentioned that the four-year block reward opportunity amounts to approximately $20 billion, based on Bitcoin's current price.
However, it noted that there has been a significant decrease of around 72% compared to just over two years ago, stating:
"For context, this figure peaked at roughly $73 billion in April '21 and has fluctuated between $14 billion and $25 billion over the past year."
The report by JPMorgan also recommended mining operators that offer the best relative value based on factors such as existing hashrate, operational efficiency, power contracts, funded growth plans, and liquidity.
It added that the investment bank would start coverage with the following ratings and price targets: CleanSpark (CLSK) overweight with a $5.50 target, Marathon Digital (MARA) underweight with a $5 target, Riot Platforms (RIOT) underweight with a $6.50 target, and Cipher Mining (CIFR) neutral.
Additionally, Iris Energy (IREN) has been upgraded from neutral to overweight.
JPMorgan's top pick is CleanSpark, which offers the best balance of scale, growth potential, power costs, and relative value.
The report also highlighted that while Marathon is the largest mining operator, it has the highest energy costs and lowest margins.
Riot, on the other hand, has relatively low power costs and liquidity but is the most
Read more on cryptonews.com
