Many Bitcoin Miners Struggle to Make Profits: Cantor Fitzgerald
Bitcoin mining is getting less profitable as many publicly traded miners might face potential profitability challenges following the next Bitcoin halving event.
According to a recent report by Cantor Fitzgerald, 11 major mining companies, including Marathon Digital (MARA), Riot Platforms (RIOT), and Bitfarms (BITF), would struggle to make a profit post Bitcoin halving in April 2024.
The report analyzed the “cost-per-coin” of the companies post halving with the steady Bitcoin price set at $40,000. Of all the 13 companies, only two were estimated to maintain their profit margins. Bitdeer (BTDR) mines each coin at the lowest cost of $17,744, while CleanSpark (CLSK) keeps the cost-per-coin just below the $40,000 level at $36,896.
Meanwhile, Argo Mining (ARBK) and Hut 8 Mining (HUT) were listed with the highest costs, each calculated at $62,276 and $60,360 respectively.
Cantor Fitzgerald stated that their research “reflects all the costs that a Bitcoin miner would incur in producing a single Bitcoin, including both electricity costs/hosting fees and other cash expenses.”
Responding to Cantor’s report, CleanSpark executive chairman Matthew Shultz expressed in a post that the key to CleanSpark’s low lost is efficiency.
*BREAKING – new today!
No matter the department, the entire team at @CleanSpark_Inc is committed to efficiency. EFFICIENCY of Uptime, Equipment, Capital, Operations, Community Engagement, Energy, Strategy, Growth, and other metrics.
Today’s brand new report from the research… pic.twitter.com/YgQ6XrIXh2
— S Matthew Schultz (@smatthewschultz) January 25, 2024
“No matter the department, the entire team at CleanSpark is committed to efficiency,” said Shultz. “EFFICIENCY of Uptime, Equipment, Capital, Operations, Community
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