A casual observer of Bitcoin Miner’s fourth quarter revenue could be forgiven, thinking it’s nothing more than a smooth sailing for the industry.
However, according to a recent JP Morgan report, we don’t ignore the fact that Bitcoin miners have lost $23 billion from their overall market capitalization in the past month.
It’s not so surprising given that Bitcoin prices began when it went above $102,000 in February and then a low sinking of $78,000, the market is suffering from President Donald Trump’s trade war.
Apart from hoping Bitcoin prices will rise, stock analysts said Decryption They focus on data center trading, energy costs, and how miners make existing fleets more efficient.
Earlier in the week, HUT 8 reported revenue of $162.4 million for 2024. This is a 69% increase compared to 2023. But that’s what Mike Colonnaise, managing director and senior crypto analyst at HC Wainwright, said he felt optimistic about the company.
“I think Hat8 is closer to signing a major HPC/AI deal with HyperSchoola,” he said. Decryption. “The company will build and operate client HPC/AI data centers in a colocation-type model in which HUT generates high margin revenues over the long term from tenants to manage the infrastructure that HUT deploys to run AI workloads.”
To put the cherries on top, the company said in its report it was able to reduce energy costs by 30%. This helped us increase the total margin per mined Bitcoin by 8 points when comparing Q4 2024 to the previous year.
This is not easy to withdraw in the same year when Bitcoin Network received its fourth half event and cut the block rewards paid to miners in half.
Generally, Coronse said he believes mining costs will rise in 2025 as network difficulty continues to increase with the growth of network hashrates and there are no major upgrades to the most popular mining rigs on the horizon.
“However, I hope that BTC price viewing will outweigh the growth in difficulty,” he added.
Nishant Sharma agrees that it is important to see how miners manage their overhead, but uses what he created the hash cost. This is the efficiency of the miners’ fleet and the money calculations needed to keep the Bitcoin mining rig running.
Previously, Bitcoin mining rig giant Bitmain, Sharma, was the founder of the communications and research company for mining Blocksbridge Capital.
“This provides a greater clarity on how the company is mining cost-effective Bitcoin,” he said. Decryption. “However, when assessing stocks in mining companies, investors need to look beyond mining efficiency.”
He noted that most mining companies, like HUT 8, are already diversifying revenue streams by providing data center space to AI and high performance computing (HPC) clients. But that’s not the only way forward.
Others like Core Scientific are working on designing their own ASIC chips. “These strategic moves introduce additional factors that require investors to weigh based on investment papers and outlook,” he added.
ASICs, or application-specific integrated circuits, are extremely important chips that optimize hardware specifically for cryptomining. That’s why we make the head and shoulders of mining rigs more efficient than mining cryptography on a personal computer.
Core Scientific announced in 2024 that it will work with Jack Dorsey’s Block Inc. to design an ASIC chip. Investors can see those chips working immediately.
“We don’t expect to increase or refresh our Bitcoin mining fleet until we source new block ASIC chips in late 2025,” said Dennis Sterling, chief financial officer of Core Scientific, in a revenue call last month.
To hear Max Shannon communicate it, Core Scientfic’s revenue calls were otherwise unremarkable. Shannon is an analyst at Crypto Investment Firm Coinshares.
“In terms of mining, the performance wasn’t impressive and actually got a little worse,” he said. Decryption. “However, the High Performance Computing (HPC) segment has achieved strong results with outstanding client interest.”
He was referring to a Core Scientific deal with AI Hyperscaler CoreWeave, which announced a $1.7 billion acquisition agreement earlier this week. Last month, the companies completed a $1.2 billion expansion in their Texas data center.
He also said he is keeping an eye on Bitdeer, another Bitcoin miner who is immersed in the manufacturing side of things. The Sealminer A2 rig has already achieved an estimated 5% of market share, he said, based on its forecast future hashrate growth.
“I believe this could increase even more over time,” Shannon said. “This segment offers greater operational flexibility because the machine can be used at cost rather than buying at market prices and not reducing spending.”
Edited by Guillermo Jimenez.
