Bitcoin Halving Event Could Be A Potential Game-Changer For Mining Industry: JPMorgan
Portfolio Pulse from Khyathi Dalal
JPMorgan's report anticipates the upcoming Bitcoin halving event on April 20 could significantly impact the mining industry, potentially leading to consolidation and business closures. The event is expected to reduce mining rewards by 50%, causing a 30%-40% decline in the industry's gross profits and a 13% decrease in the network hashrate. CleanSpark (NASDAQ:CLSK) is highlighted as well positioned to benefit from the halving, while Cipher Mining (NASDAQ:CIFR) may face challenges due to high overheads and tough hashrate comparisons.
April 11, 2024 | 4:50 pm
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NEGATIVE IMPACT
Cipher Mining is viewed as the worst positioned in the near term due to its high overhead expenses and tough hashrate comparisons, which could negatively impact its revenue and profit growth.
Despite having the lowest energy prices, Cipher Mining's high overhead expenses and unfavorable hashrate comparisons may lead to decreased revenue and profit growth following the halving event.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
CleanSpark is considered well positioned to benefit from the Bitcoin halving event, with expectations of record revenues and profits due to its efficient mining operations.
CleanSpark's efficient mining fleet and low all-in mining costs position it to potentially benefit from the reduced block rewards post-halving, driving up its revenues and profits.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90