CoinShares assessed the prospects for Bitcoin miners after halving
Of the public miners, only Bitfarms, Iris, CleanSpark, TeraWulf and Cormint will be able to operate with a profit after halving if the price of Bitcoin does not exceed $40,000. CoinShares came to this conclusion.
According to the firm's specialists, in the third quarter of 2023, the weighted average values ââof Bitcoin production costs and cash costs were $16,800 and $25,000, respectively. Following the expected block reward reduction in April, these figures will rise to $27,900 and $37,800.
According to experts, the average cost of Bitcoin mining will reach $37,856.
According to CoinShares experts, one of the main problems of miners is the high costs of selling, general and administrative expenses (SG&A). To break even, companies will likely have to cut back.
Experts expect that by halving the network hashrate will be about 450 EH/s. Historically, the rate has declined approximately six months after the block reward halved by ~9%. Therefore, it could potentially drop to 410 EH/s, but by the end of 2024 the trend line predicts an increase to 550 EH/s.
