Financial services company Cantor Fitzgerald stated in a research report that if the price of Bitcoin does not significantly increase after the halving in April, most mining companies may face losses. However, Bitdeer is most likely to continue to remain profitable.
(Bitcoin Halving Countdown: Reviewing the Past Three Halving Events, Will BTC Definitely Rise?)
(Business Background: Major institutions such as UBS and Deutsche Bank “Buy a Large Amount of Bitdeer” BTDR, Monthly Increase Exceeds 13%)
Table of Contents:
Cantor Fitzgerald: Bitdeer Most Likely to Continue to Be Profitable After Halving
Bitdeer Announces Appointment of Wu Jihan as CEO
BTDR Rises by 18%
Bitcoin will undergo its once-every-four-years halving event in April this year, and investors are eagerly anticipating 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 significantly increase after the halving, many Bitcoin mining companies, including Marathon Digital, Riot Platforms, and Core Scientific, will have difficulty covering the total costs of production and operation with the Bitcoin they mine, making it difficult to profit from mining activities.
At the same time, this also means that these mining companies may be forced to sell BTC to raise operational funds, creating selling pressure on Bitcoin.
Cantor Fitzgerald: Bitdeer Most Likely to Continue to Be Profitable After Halving
According to Cantor Fitzgerald’s research report, based on a Bitcoin price of $40,000, they forecast that by April of this year, the production costs (including all costs) of UK mining company Argo Blockchain and North American mining companies Hut 8, Marathon Digital, Riot Platforms, Core Scientific, etc. will range from $44,000 to $62,000. If the price does not significantly increase, 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 and will continue to maintain profitability.
(Mining Company Mining Costs)
However, as reported by Cointelegraph, although many mining companies may not generate profits from mining activities, they typically adopt hedging strategies to cope with Bitcoin’s price fluctuations, such as buying computing power futures contracts and Bitcoin-related options and other derivatives.
Further Reading:
Country Mining Bitcoin: Bhutan Sovereign Fund Cooperates with Bitdeer, Betting 500 million on Cryptocurrency Mining
Bitdeer Announces Appointment of Wu Jihan as CEO
In addition, Bitdeer announced on its official website yesterday (29th) that Bitdeer founder and Chairman of the Board Wu Jihan will serve as the company’s CEO, and the current CEO, Kong Linghui, will be transferred to the position of Chief Business Officer. Both appointments will take effect from March 1st.
Wu Jihan commented on this:
BTDR Rises by 18%
Perhaps influenced by the halving event and Wu Jihan personally taking over Bitdeer, according to Google Finance data, Bitdeer stock BTDR closed at $8.99 earlier, rising more than 18% in a single day.
(Bitdeer Becomes NVIDIA’s Preferred Cloud Service Provider! Plans to Launch Bitdeer AI Cloud)
(Bhutan Mining Bitcoin: Bitdeer Deploys 23,000 Mining Machines, Estimated to Mine 6 BTC per Day)
(Mining Companies Soar! Bitdeer’s Stock Price Surges by 50%, Market Value Breaks New Record of £1.2 billion)