In a recent research report, JPMorgan stated that the Bitcoin mining industry is at a crucial juncture.
According to analysts, the approval of a spot Bitcoin exchange-traded fund (ETF) could potentially trigger a rally despite record hashrates and the upcoming block reward halving that could impact the industry's revenues and profitability.
According to JPMorgan analysts, BTC mining company CleanSpark is JPMorgan's favorite choice due to its balance of scale, growth potential, energy costs and relative value. Although Marathon is the largest mine operator, it has the highest energy costs and lowest margins.
According to the report, Cipher Mining is limited in growth despite having the lowest energy costs among its peers.
JPMorgan announced that it estimates the four-year block reward opportunity at the current Bitcoin price to be around $20 billion. However, according to analysts, the halving of the block reward expected in the 2nd quarter of 2024 may affect profitability. The bank estimates that 20% of the network hashrate is at risk from the halving as less efficient mining devices are retired.
*This is not investment advice.