Bitcoin Miner Stocks Plummet Amid Unfounded Post-Halving Profit Concerns: Expert Analysis

Mitchell Askew, an analyst at Blockware Solutions, dismisses concerns regarding post-halving Bitcoin mining profitability, citing the decline in crypto miner stock prices.

Despite investor concerns about the profitability of the Bitcoin mining sector following the halving of rewards, both domestically and internationally, Mitchell Askew, an analyst at Blockware Solutions, suggests that these fears lack substance.

“Investors will realize their fears were mostly unsubstantiated,” said Mitchell Askew, head analyst at Bitcoin mining firm Blockware Solutions. He cited post-halving profitability concerns and Bitcoin’s 7.5% price fall over the last week as the main catalysts behind miners’ falling stock prices.

According to Google Finance, Marathon Digital (MARA) and Riot Blockchain (RIOT), leading BTC miners, have witnessed a decline of approximately 53% and 54%, respectively, from their year-to-date highs in February.

CleanSpark (CLSK) reached a three-year peak of $23.40 on March 25, yet it has since decreased by 38.1% to $14.48. Despite this, its value remains nearly 250% higher for the year.

Bitdeer Technologies (BTDR) of Singapore and Iris Energy (IRIS) of Australia, both Nasdaq-listed non-U.S. Bitcoin miners, have experienced declines of 40.8% and 47.6%, respectively, since their mid-February year-to-date highs.

Anticipated alongside the fourth Bitcoin halving on April 20 is a reduction in Bitcoin mining rewards to 3.125 BTC, valued at approximately $200,000.

Mitchell Askew highlighted post-halving profitability concerns, exemplified by the Valkyrie Bitcoin Miners ETF (WGMI), an actively managed fund with a nearly zero correlation coefficient to Bitcoin in 2024.

Although WGMI’s price relative to Bitcoin is nearing a previous local low, Askew anticipates a rebound in mining stocks shortly following the halving.

In late January, Cantor Fitzgerald’s report raised concerns about profitability, indicating that 11 publicly listed Bitcoin miners might face challenges in mining profitably post-halving, especially if Bitcoin’s price remained around $40,000, as it was at the time.

Jaran Mellerud, the founder and chief mining strategist of Hashlabs Mining, suggests that if Bitcoin’s price doesn’t continue to rise after the halving, some U.S. Bitcoin miners may consider migrating or expanding offshore to access cheaper electricity costs.

READ MORE NEWS ON

Bitcoin | Inflation Deflation Deflation Inflation Cryptocurrencies

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.