Bitcoin Halving Squeezes Miners, But Marathon, CleanSpark Stand Out: JPMorgan
Portfolio Pulse from Surbhi Jain
Bitcoin miners faced challenges in Q2 2024 due to the Bitcoin halving event, which reduced daily coin yields. Despite this, Marathon Digital and CleanSpark stood out for their strategic moves and cost efficiencies. Marathon led in bitcoin mining and cost-cutting, while CleanSpark expanded aggressively. Riot Platforms and Iris Energy also made significant capital moves.
August 23, 2024 | 1:43 pm
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POSITIVE IMPACT
Cipher Mining maintained the lowest overall costs per coin, holding a favorable position despite pressure on margins due to increased power expenses.
Cipher's ability to maintain the lowest overall costs per coin positions it favorably in the market, even as margins are pressured by increased power expenses.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
CleanSpark expanded aggressively by acquiring turn-key facilities, maintaining a favorable position due to cost efficiencies despite increased operational costs.
CleanSpark's aggressive expansion and cost efficiencies position it well in the competitive mining landscape, despite the challenges posed by the halving event.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Iris Energy focused on greenfield projects and led capital raising efforts, positioning itself uniquely with high-performance computing GPUs.
Iris Energy's focus on greenfield projects and leadership in capital raising, along with its unique position in HPC GPUs, provides a strategic advantage in the mining sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
Marathon Digital maintained its lead in bitcoin mining and achieved the lowest cash SG&A cost per coin, positioning itself strongly despite the halving event.
Marathon Digital's ability to maintain its lead in bitcoin mining and achieve the lowest cash SG&A cost per coin highlights its operational efficiency and strategic advantage in a challenging environment.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Riot Platforms expanded its hashrate significantly but faced high operational costs, impacting its profitability despite favorable power contracts.
Riot's significant hashrate expansion is offset by high operational costs, which could impact its short-term profitability despite favorable power contracts.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75