As the fourth Bitcoin halving approaches, scheduled for later this week, Bitcoin miners are facing a significant drop in stock prices. Key players in Bitcoin mining such as Marathon Digital (MARA) and Riot Blockchain (RIOT) have experienced substantial declines, with their stock prices dropping by approximately 53% and 54%, respectively, from their peak values earlier this year in February, as reported by Google Finance. CleanSpark (CLSK) also saw its stock surge to a three-year high of $23.40 on March 25, only to retreat by 38.1% to $14.48. The Valkyrie Bitcoin Miners ETF has decreased by around 28% this month alone.
International Mining Companies Affected
It’s not just U.S. Bitcoin miners who are feeling the impact of the upcoming halving. Non-U.S. companies like Singapore’s Bitdeer Technologies (BTDR) and Australia’s Iris Energy (IRIS), both listed on the Nasdaq, have seen significant declines of 40.8% and 47.6%, respectively, since reaching year-to-date highs in mid-February. This global trend highlights the widespread effects of Bitcoin halving on the mining industry.
Despite the stock price declines and uncertainties surrounding the upcoming halving, CEOs of Bitcoin mining companies are maintaining a positive outlook. They believe that factors such as low-cost operations, advancements in equipment efficiency, and increasing demand for crypto assets can help offset the anticipated $10 billion annual revenue losses from the halving. The CEOs are hopeful that new spot Bitcoin ETFs will drive BTC prices higher, counteracting the negative effects of the halving.
Concerns about profitability post-halving were raised in late January when Cantor Fitzgerald reported that 11 publicly-listed Bitcoin miners could face challenges if Bitcoin’s price remained around $40,000. Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, suggested that if Bitcoin’s price doesn’t continue to rise after the halving, some U.S. miners may need to consider relocating or expanding operations offshore to access more affordable electricity costs.
The upcoming Bitcoin halving is having a significant impact on mining companies, both in the U.S. and internationally. While stock prices have declined and concerns about profitability have been raised, industry leaders remain optimistic about the future. The ability of mining companies to adapt to changing market conditions and leverage new opportunities will play a crucial role in determining their success in the post-halving era.