As the market grows inches towards the beer market, bitcoin investors are looking to other blockchain avenues for the long winter weather. Public bitcoin miners are one of the ways to gain fame through the 2021 Bull Rally. The rise in their stock prices at this time attracted investors, and as the market slowed, we saw which of these public miners were best placed for crypto winter weather.
Looking at the company
There are currently several companies that dominate the public bitcoin mining space. Among them are popular like marathon, core scientific, riot etc. Now, all of these companies have been hit hard since Bitcoin began to decline. However, some have been able to shoulder the fall in interest better than others. This is evident in their market caps, even after recording losses of over 50%.
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To determine which of these bears are best prepared for the market, we look at their energy prices. Electricity is the basis of crypto mining and often the highest running cost of any mine. So the lower the power consumption the better.
Among the top public mining companies, Riot has emerged as the lowest priced electricity company. According to the latest data, the company pays 24 per MWh, which means it has the lowest power consumption among the top 5 companies. It also boasts of the lowest debt compared to equity which currently sits at 0.1 debt-to-equity ratio. Marathon, however, has a debt-to-equity ratio of 1.0 which means it holds more liquidity than Riot.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
Interestingly, none of these companies have the largest market cap. The title belongs to Core Scientific with a market cap of $ 1.370 billion. Marathon is in second place with 1.092 billion cap and Riot is in third place with $ 920 million market cap.
Measured on an overall scale, Riot emerges as the most suitable company for a bear market weather. Its low power consumption and healthy balance sheet put it in a unique position to cost less than its competitors and still make a profit.
The best bitcoin minor
Mining machines used by bitcoin miners can often determine their profitability. Cash flow from leading Bitcoin miners has dropped more than 50% from its peak but still remains at a favorable point. The first is the Antminer S19 which had a cash flow of more than $ 50,000 per BTC at the height of last year’s bull rally. But by the end of May, the profitability of this mine had dropped to $ 23,000 from the current য়ে 31,000 price of Bitcoin.
Cash flow from miners drop | Source: Arcane Research
Antminer S9 is not going well. At current prices, this mining machine is seeing TC 8,000 cash flow per BTC excavation. This shows how rapidly the profitability of mining is declining, raising concerns about the future of this place.
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If production costs continue to rise and cash flow from miners continues to decline, several bitcoin mining companies will not be able to make it through the beer market. What will be the consequences of many bankruptcies due to increased M&A activity?
Featured image from GOBankingRates, charts from Arcane Research and TradingView.com
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