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Bitcoin Halving Countdown! CleanSpark CEO Optimistic about Post-Halving Development, Names Four Big Winners

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Bitcoin Halving Countdown! CleanSpark CEO Optimistic about Post-Halving Development, Names Four Big Winners

According to The Block, citing a report from Wall Street investment bank Bernstein sent to clients, CEOs of various Bitcoin mining firms remain optimistic about the halving event, despite failing to outperform Bitcoin. Meanwhile, mining company CleanSpark emphasizes that the market dynamics have changed after the launch of ETFs, forcing consolidation in the mining industry and giving rise to four major winners.

Bitcoin ETF Drains Mining Company Liquidity

Analysts Gautam Chhugani and Mahika Sapra revealed in their report on the 15th that despite the underperformance of various Bitcoin mining companies this year compared to Bitcoin itself, CEOs remain optimistic about the upcoming halving event.

They attributed the poor performance to the strong inflows into Bitcoin spot ETFs, impacting the performance of mining company stocks and raising concerns about mining revenue in light of the halving event.

This aligns with the view of former Coinbase analysts:

With the cumulative BTC holdings of Bitcoin spot ETF issuers now three times that of mining companies, ETFs have become a significant pillar of Bitcoin demand.

Mining Companies Bullish on Halving: Market Consolidation and Winners Emerge

CleanSpark CEO Zack Bradford stated that mining company stocks are poised for better performance post-halving, as this will lead to market share consolidation, benefiting the winners more, while smaller and less efficient mining companies will be adversely affected.

Bradford also boldly predicted that the market will gradually consolidate into four major mining companies:

including CleanSpark, Riot, Marathon, and Cipher Mining.

Marathon CEO Fred Thiel also endorsed this view in a blog post last week, considering CleanSpark as their primary competitor in corporate acquisitions.

Both CleanSpark and Riot were mentioned in an earlier CoinShares report this year, seen as among the most capable mining companies to handle the expected cost increase crisis post-halving.

CoinShares Report: Bitcoin Mining Company Cost Price at $37,800, Only 5 Companies Profitable

Analysts Chhugani and Sapra noted that these four mining companies are actively expanding their business scale, efficiency, and capacity.

Mining Boom amid Literary Craze

Furthermore, the analysts pointed out that the surge in Bitcoin prices, bringing substantial income to mining companies, along with new transaction fee revenue, has put mining companies in a relatively healthy financial position pre-halving. However, they still need to seek other sources of income to cope with the high volatility of Bitcoin prices:

The surge in transaction fees due to the previous Bitcoin NFT craze provided additional buffer for the halving event.

Additionally, facing the challenges and opportunities brought by the growing demand for AI, they believe this could be a double-edged sword:

In the short term, AI helps reduce the cost of Bitcoin ASIC chips but also intensifies competition among mining companies in low-power cost states like Texas.

Investors Likely to Enter if Political Events Subside

Finally, regarding the recent Israel-Palestine conflict that caused a sudden drop in the crypto market, the analysts stated:

In the absence of further political conflicts, the current price range of Bitcoin may be attractive to investors who are watching from the sidelines.

They added, "Considering the diminishing temporary impact of the halving event, mining companies are expected to outperform Bitcoin in the next 12 months."

Wall Street investment bank Bernstein: Increasing Confidence in Bitcoin Reaching $150,000, Mining Stocks to See Large Rebound