Financial services company Cantor Fitzgerald stated in a research report that after the halving of Bitcoin in April, most mining companies may face losses if the price of the currency does not increase significantly. However, Bitdeer is the most likely to continue to remain profitable.
(Bitcoin halving countdown 100 days! Reviewing the history of the previous three halvings, will BTC definitely rise?)
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Table of Contents:
Cantor Fitzgerald: Bitdeer is most likely to continue to be profitable after halving
Bitdeer announces appointment of Wu Jihan as CEO
BTDR rises by 18%
Bitcoin will experience its once-every-four-years halving event in April this year, which investors eagerly anticipate will lead to a wave of explosive growth for BTC after the halving.
However, it is worth noting that financial services company Cantor Fitzgerald recently stated in a research report that if the price of Bitcoin does not increase significantly after the halving, many Bitcoin mining companies including Marathon Digital, Riot Platforms, and Core Scientific, among others, will find it difficult for the Bitcoin they mine to cover the total costs of production and operation, making it difficult for them to profit from mining activities.
At the same time, this also means that these mining companies may be forced to sell BTC to raise operating funds, which will bring selling pressure to Bitcoin.
Cantor Fitzgerald: Bitdeer is most likely to continue to be profitable after halving
According to the Cantor Fitzgerald research report, based on a Bitcoin price of $40,000, they predict that by April of this year, the production costs (including all costs) of UK mining company Argo Blockchain, North American mining companies Hut 8 and Marathon Digital, Riot Platforms, Core Scientific, etc., will range from $44,000 to $62,000. If the price of the currency does not increase significantly, these companies may face significant losses.
As for the mining company with the lowest production cost, analysts predict that Bitdeer’s estimated mining cost is $17,744, which is much lower than its industry competitors, enabling it to continue to remain profitable.
(Mining company mining costs)
However, according to a report by Cointelegraph, although many mining companies may not be able to generate profits from mining activities, they usually adopt some hedging strategies to cope with the price fluctuations of Bitcoin, such as purchasing computing power futures contracts and Bitcoin-related options and derivatives.
Read more:
National Bitcoin Mining: Bhutan’s Sovereign Fund Collaborates with Bitdeer, Betting 500 million pounds on cryptocurrency mining
Bitdeer announces appointment of Wu Jihan as CEO
In addition, yesterday (29th), Bitdeer announced on its official website that Bitdeer founder and chairman Wu Jihan will assume the position of CEO of the company, and the current CEO Kong Linghui will transition to the position of Chief Business Officer. Both appointments will take effect from March 1.
Wu Jihan stated:
BTDR rises by 18%
Perhaps influenced by the halving event and Wu Jihan taking over as CEO of Bitdeer, according to Google Finance data, Bitdeer stock BTDR closed at $8.99 earlier today, with a daily increase of over 18%.
(Related reports:
Bitdeer becomes NVIDIA’s preferred cloud service provider! Plans to launch Bitdeer AI Cloud
National Bitcoin Mining: Bitdeer is deploying 23,000 mining machines, estimated to mine 6 BTC per day
Mining companies are on fire! Bitdeer stock price soars by 50%, market value breaks new high of 1.2 billion pounds)