Bitcoin

According to a recent analysis by asset manager CoinShares, Bitcoin mining firms <a href="https://ultramining.com/news/en/riot-platforms-to-boost-efficiency-with-midas-immersion-coolings/" rel="noopener noreferrer nofollow">Riot</a>, TeraWulf, and <a href="https://ultramining.com/news/en/cleanspark-doubles-down-on-bitcoin-mining-with-55m-expansion/" rel="noopener noreferrer nofollow">CleanSpark</a> are optimally positioned to handle the cost increases anticipated following the Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> event in April. The halving, a key element of Bitcoin's deflationary policy, will reduce the block reward given to miners by half, impacting the rate of new Bitcoin creation, according to <a href="https://cointelegraph.com/news/riot-terawulf-cleanspark-miners-bitcoin-halving-coinshares" rel="noopener noreferrer nofollow">Cointelegraph</a>.
CoinShares projects that post-halving, the cost of <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/" rel="noopener noreferrer nofollow">production</a> and cash costs for mining a single Bitcoin will rise significantly. The anticipated average cost of production post-halving is projected at $37,856.
The halving event doesn't change the cost of mining operations, which may even rise due to expansion efforts to maintain profitability. CoinShares notes that Riot, TeraWulf, and CleanSpark are better equipped to navigate these changes. Large selling, general, and administrative (SG&amp;A) expenses are a major challenge for miners. The halving could force miners to reduce these costs to avoid operating losses and liquidating their <a href="https://ultramining.com/news/en/rising-mining-difficulty-squeezes-bitcoin-miners-sparks-accumulation-among-whales/" rel="noopener noreferrer nofollow">Bitcoin holdings</a>.
CoinShares also highlights that if <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> falls below $40,000 post-halving, mining firms will face financial strains. In such a scenario, only a handful of firms, including <a href="https://ultramining.com/news/en/bitfarms-set-to-boost-mining-capacity-with-quebec-expansion/" rel="noopener noreferrer nofollow">Bitfarms</a>, Iris, CleanSpark, TeraWulf, and Cormint, are expected to operate profitably.
Moreover, the analysis underscores that while most miners are enhancing their fleet efficiency, the direct cost structure remains unchanged. Miners will need to increase power draw and energy consumption to mine the same amount of Bitcoin, impacting the overall cost structure.
Electricity costs, forming a significant part of miners’ total cost structure, are expected to rise from 68% pre-halving to 71% post-halving.&nbsp;

Riot, TeraWulf, and CleanSpark Poised for Success Post-Bitcoin Halving

Ultramining_Eng

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