The persistent buzz about #Bitcoin ( $BTC ) reaching a six-figure price before the close of the upcoming year remains undeterred, despite recent dips that saw BTC lose the $30,000 support level.

However, for publicly-listed Bitcoin miners, a price tag surpassing $100,000 might not just be a mere projection but rather an imperative for their continued profitability.

The Challenge of Bitcoin Halving for Public Miners

Bitcoin mining stocks have been on a remarkable rally throughout the year, surpassing BTC’s performance in the past few months with a striking surge of almost 100%.

While Bitcoin has embraced a phase of decreased volatility and consolidation, the stocks of Bitcoin mining companies have undergone a rapid ascendancy.

One comprehensive report by “Made Easy – Finance” on Seeking Alpha delves deep into this realm, focusing particularly on Riot Blockchain, Inc.

( #RIOT ) – a prominent player in the mining sector.

It suggests that despite RIOT’s plans to triple its mining capacity by 2024, both the company and the broader landscape of Bitcoin miners could be confronted by significant challenges stemming from the halving.

The halving mechanism, which entails a 50% reduction in BTC block rewards, directly slashes miners’ primary revenue stream in half.

Moreover, miners like RIOT often resort to issuing new equity shares to raise capital for their operations.

However, this dilution of existing shares could potentially hinder share price growth even if the company’s underlying fundamentals remain strong.

Adding to these complexities, the report underscores the potential overvaluation of many miners at present, which could hint at an impending decline in momentum.

Amid these complexities, the scenario for public Bitcoin mining stocks appears less than optimistic.

The Quest for Six-Figure Bitcoin

What’s the critical threshold for BTC’s price to sustain the profitability of miners at their current valuations?

The above-mentioned report concludes that a price level approaching $100,000 might be necessary for miners to continue operating optimally:

“Unless Bitcoin outperforms our Bitcoin thesis, we don’t see any way where the Bitcoin sector can come out unscathed.

Even with RIOT’s ambitious 35 EH/s, our model suggests that Bitcoin needs to trade above $98,000 to justify RIOT’s current valuation (post-halving).”

This insight raises a red flag for those who “ #hodl ” BTC mining stocks, as underlying fundamentals, could potentially lag behind valuations that may not be accounting for next year’s impending Bitcoin halving event.

Read more: https://perseuscrypto.com/bitcoin/btc-price-must-exceed-98k-ahead-of-the-halving/

BitDeer, a subsidiary of former Bitmain co-founder Jihan Wu, has revealed that its operational capacity has surged to 562 MW at the end of 2022. The company has powered 4.2 EH/s and 6.3 EH/s in proprietary mining and hosting hashrate, respectively, as of June 2022.

BitDeer has made a significant leap in capacity from its operational capacity of 280 MW in September 2021, thanks to the construction in Rockdale, Texas. The company has achieved an operational capacity of 386 MW as of June 2022 and increased the developed capacity of the Texas site to 562 MW by the end of 2022.

The new figures place BitDeer in direct competition with Riot, which claims to have 700 MW in developed capacity in the same Texas city. BitDeer’s diversified business models include proprietary mining, hashrate sharing, and hosting. The company generated $75 million through hashrate sharing, similar to selling cloud mining contracts using its own hashrate.

@azcoinnews

The company’s revenue diversification breakdown indicates that BitDeer’s three segments played a more equal role in revenue contribution in 2022 compared to previous years. Notably, the revenue from the hosting segment increased from $26 million in FY’21 to $60 million in the first half of 2022 alone.

@azcoinnews

Texas remains the largest mining hub in North America with about two gigawatts of operating capacity as of Q4 2022, according to an updated North American mining power distribution map by TheMinerMag. Despite industry headwinds, Bitcoin mining is booming in Texas, as reported by Reuters. BitDeer’s success in Texas is a testament to the state’s friendly regulatory environment for crypto miners.

#Bitdeer #RIOT #Texas #Bitcoinmining #azcoinnews

This article was republished from azcoinnews.com

#BinanceTournament RIOT stock price soars over 10% as Riot Platforms bolsters #BitcoinMining capabilities in partnership with MicroBT.In a significant move to bolster its Bitcoin mining capabilities, Riot Platforms, Inc. (NASDAQ: RIOT) has recently intensified its collaboration with MicroBT Electronics Technology Co., LTD, a leading manufacturer of #BitcoinMiners . The company, recognized for its robust role in the Bitcoin mining and data center hosting sphere, declared the execution of a substantial purchase option. This move supplements Riot’s current mining power, propelling its position in the industry.The agreement details reveal that Riot will acquire 66,560 of MicroBT’s latest-generation miners. This addition, combined with a previous order of 33,280 units, will remarkably enhance Riot’s self-mining hash rate capacity to surpass 38 EH/s. Furthermore, the company has been granted the option to purchase up to 265,000 additional miners, potentially expanding its capacity to over 100 EH/s.Advancements in Mining TechnologyThe newly ordered miners predominantly comprise the M66S model, MicroBT’s most efficient miner to date, boasting an efficiency rating of 18.5 Joules per terahash (TH). This efficiency is a testament to the evolving technology in the Bitcoin mining sector, where power consumption and efficiency are pivotal factors. The miners will be manufactured in the United States tailored for immersion cooling, a cutting-edge approach that enhances miner lifespan and efficiency.The investment in these miners totals $290.5 million, averaging approximately $16/TH. This strategic acquisition underlines Riot’s commitment to growing its hash rate while maintaining cost-effectiveness and operational efficiency.The deployment of these mining units is meticulously scheduled. The initial batch of 33,280 MicroBT miners will commence deployment in Q1 2024. The subsequent delivery and deployment of the additional 66,560 miners are slated for the second half of 2024, with the full deployment expected to be completed by the second half of 2025.#RIOT Stock Price Reacts PositivelyReflecting investor confidence in Riot’s strategic expansion, the Riot Blockchain stock price witnessed a notable surge. In the 24 hours following the announcement, the stock price increased by 12.35%, reaching $13.77. This uptick underscores the market’s positive reception of Riot’s ambitious growth plans and its reinforced partnership with MicroBT.Jason Les, CEO of Riot, expressed his enthusiasm about the most significant hash rate order in the company’s history. He emphasized the significance of this agreement in maintaining Riot’s position as a leader in the Bitcoin mining industry. Jordan Chen, COO of MicroBT, reciprocated the sentiment, highlighting the fruitful collaboration between the two companies.#ORDI 🗣🗣Empower Our Mission: Tips For Dedicated Service. 🗣🗣👉Users are encouraged to support the mission by offering generous tips.🗣This empowers creators to work even harder, ensuring the continued delivery of top-notch investment advice. @WISE CRYPTO NEWS