Bitcoin mining in view: This is how stocks Riot Platforms, MARA and Co. are benefiting from the energy crisis

• Van Eck sees Bitcoin miners as profiting from the energy crisis
• MARA and Core Scientific as pioneers
• Profitability of Bitcoin mining is weakening

Van Eck: Bitcoin miners as a new force in the energy market

According to Matthew Sigel, head of digital asset research at VanEck, Bitcoin mining companies are currently playing a key strategic role in benefiting from the massive increase in demand for electricity and computing power worldwide. According to DeCrypt, Sigel emphasizes that the market has so far underestimated the enormous upside potential of this sector. Above all, the increasing diversification of the infrastructure plays a key role: Miners are aggressively converting their capacities to serve not only crypto mining but also the rapidly growing area of ​​artificial intelligence (AI). “These miners recognized early on that they were sitting on a goldmine in terms of the cost of capital they could achieve through rebalancing,” explains Sigel. He also points out that mining companies are still trading at a significant discount to traditional data center operators based on their market capitalization per megawatt.

A decisive competitive advantage of miners lies in their importance for global network management. Since they can flexibly reduce their high power consumption during peak demand, they act as a valuable tool for load distribution. This network stability is becoming increasingly relevant given the relocation of industrial production, the AI ​​boom and even modern defense technologies – such as high-energy laser systems – according to DeCrypt.

Industry giants such as MARA and Core Scientific have already anticipated this trend: While MARA is consistently converting its locations into hyperscale data centers, Core Scientific recently secured billions in financing from Morgan Stanley to advance the expansion of its own AI infrastructure.

Bitcoin outlook

Sigel paints a differentiated picture regarding the further price development of Bitcoin. The cryptocurrency currently remains closely linked to global liquidity and macroeconomic risk factors. Geopolitical tensions or potential oil price shocks could tighten global liquidity and put pressure on the price within the current trading range of $59,000 to $72,000. Nevertheless, there are bright spots: The analyst sees it as a positive signal that the selling pressure from long-term investors has recently eased, which gives the market more stability after the profit-taking phase at the beginning of the cycle.

Bitcoin mining at the limit?

However, VanEck’s optimistic assessment is offset by the current precarious profitability of the classic mining business. The recent Bitcoin price collapse has plunged the industry into an existential crisis and is forcing a radical strategic shift. Since the cryptocurrency collapsed from its record high of over $126,000 in October, most businesses are no longer profitable, according to an analysis by Rosenblatt obtained by CNBC. The development of the so-called hash price is assessed particularly critically: the income per unit of computing power has fallen to less than 3 cents – a level that is only sustainable for the most efficient miners. Analyst Chris Brendler describes the situation drastically as a deterioration from “bad to even worse”, as the previous lows in profitability from December were once again undercut by the current market situation.

The crucial question remains whether the strategic pivot is enough to offset the massive losses in the core business.

Editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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