Bitcoin (BTC) miners are turning into industrial-scale businesses. On the other hand, North America is gaining significant market share against China. These views were laid out in a research report by Bernstein, which studied the industry, including in the US.
Two choices stand out
Two choices stand out in Bernstein’s Bitcoin BTC mining analysis: Riot Platforms (RIOT) is rated “strong perform” with a price target of $15.60. Additionally, CleanSpark (CLSK) stands out as “strong performer” with a price target of $5.30.
The report describes these Bitcoin BTC mining companies as “market share aggregators with strong operational superiority (using a self-mining model), low production costs (thanks to low energy expenses), high liquidity and unleveraged balance sheets.” Analysts Gautam Chhugani and Mahika Sapra have detailed these key factors.
Marathon Digital: A player with high market performance
Marathon Digital (MARA), the largest Bitcoin miner in the industry, receives a “market-perform” rating from Bernstein with a price target of $8.30. However, the report notes that the company’s costs are below par. He also emphasizes that it is in the middle of the cost curve. On the other hand, he points out that the company lacks an operational advantage because it depends on hosting partners.
In contrast, Riot and CleanSpark are “investing in Bitcoin self-mining capacity on a cyclical basis,” unlike miners who are directing their capacity towards AI and high-performance computing. The report predicts that this “countercyclical BTC capacity investment” will pay off as the cycle progresses.
The report also emphasizes Bitcoin price cycles
The Bernstein report states that Bitcoin price cycles follow 4-year patterns in sync with the BTC halving. For the 2024-2027 cycle, there is a significant price target on the world’s largest cryptocurrency. Accordingly, “reaching a cycle of $150,000 by mid-2025” is among the targets.
When we look at Kriptokoin.com, the next Bitcoin halving event is likely to occur in April 2024. Accordingly, Bernstein describes it as a tiring way for a winning Bitcoin miner to take risks. As the cryptocurrency market evolves, quality bitcoin mining stocks are gaining attention. It is also becoming increasingly important for investors looking to participate in the next bull run. Bernstein’s views shed light on the changing dynamics in the Bitcoin mining industry. It provides perspective on the strategic importance of choosing the right stocks for the future of the cryptocurrency market.
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