According to CoinDesk, Bitcoin (BTC) miners are transforming into industrial-scale enterprises, with North America gaining market share over China, according to a research report by broker Bernstein. The report highlights Riot Platforms (RIOT) and CleanSpark (CLSK) as preferred market share consolidators with strong operational edge, low cost of production, high liquidity, and unlevered balance sheets. Bernstein analysts Gautam Chhugani and Mahika Sapra also noted that Marathon Digital (MARA), the largest miner, has sub-par costs and no operational edge due to its dependence on hosting partners.
Riot and CleanSpark are investing counter-cyclically in bitcoin self-mining capacity, unlike some miners who shifted capacity to AI and high-performance computing. Bernstein expects this counter-cyclical BTC capacity to pay off as the cycle turns. The report also mentioned that bitcoin price cycles have followed four-year patterns in sync with bitcoin halving. For the 2024-27 cycle, the world's largest cryptocurrency is expected to rise to a cycle high of $150,000 by mid-2025. The next bitcoin halving is anticipated in April 2024, and a winning bitcoin miner is considered a high-beta way to gain exposure.
