Bitcoin

Impact

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Analysts suggest that the stable price action of Bitcoin could be beneficial for miners.</li>
 <li>Publicly-listed miners are expected to grow their market share through organic and acquisition-led expansion.</li>
</ul>
<p>Bernstein analysts have voiced that the current steady price movement of <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) could be advantageous for miners. This is particularly true in situations where economics are influenced by competitive hash-rate wars.</p>
<h2 id="bitcoin-s-price-action-and-hash-rate">Bitcoin’s Price Action and Hash Rate</h2>
<p>The analysts, Gautam Chhugani and Mahika Sapra, mentioned in a note to clients that they don’t anticipate any significant drop in Bitcoin’s price. They expect Bitcoin to remain within a certain range and continue its upward adoption trajectory as Bitcoin ETFs get allocations from Registered Investment Advisors, wealth platforms, and other institutional funds. Bitcoin is currently trading at around $62,800.</p>
<p>On Thursday, the mining difficulty of Bitcoin dropped 5.7%, which is the largest negative adjustment since the bear market lows when the difficulty fell 7% on December 6, 2022, and Bitcoin was trading for around $17,000. The mining difficulty of Bitcoin is a relative measure of the difficulty of mining a new block compared to the easiest it can ever be.</p>
<h2 id="impact-on-public-bitcoin-miners">Impact on Public Bitcoin Miners</h2>
<p>Despite the overall decrease in the total hash rate of the Bitcoin network following its fourth halving event, the market share of publicly-listed miners Marathon Digital, Riot, and CleanSpark has slightly increased. The analysts expect these miners to further consolidate their market share through organic and merger and acquisition-led expansion, given their strong Bitcoin balance sheets and cash positions.</p>
<p>CleanSpark recently acquired three mining sites in Mississippi for around $20 million and agreed to purchase another two sites in Wyoming for approximately $19 million. Marathon also recently acquired new sites at a cost of around $265 million. Meanwhile, Riot is working on tripling its capacity via an expansion at its Corsicana site in Texas.</p>
<p>Chhugani and Sapra note that a temporary pause in Bitcoin’s price could be beneficial for lower-cost Bitcoin miners, as hash rates remain capped and strong miners can execute their aggressive capital expenditure and M&amp;A plans to grow market share. They also reiterated their $150,000 Bitcoin price prediction for this cycle, citing a variety of factors.</p>

Bernstein Highlights Positive Impact of Static Bitcoin Prices on Public Miners

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