Bitcoin BTC/USD miners are adapting to a new landscape as they seek to optimize operations and diversify revenue streams, according to a recent report from Bernstein analysts.
What Happened: The second-quarter “report card” written by lead analyst Gautam Chhugani and team indicates a shifting competitive landscape for major Bitcoin mining companies. Marathon Digital Holdings Inc MARA, Core Scientific Inc CORZ and CleanSpark Inc CLSK emerged as the top three Bitcoin producers, with Marathon leading in self-mining and co-hosting scale. CleanSpark and Core Scientific stood out for their realized hash rate and operational efficiency.
Riot Platforms RIOT lagged in production despite having the second-largest hash rate. The company is working to improve efficiency by replacing older machines with the latest generation rigs.
The report highlights a trend of miners diversifying into AI and data center operations. Core Scientific has allocated 382 MW to AI/HPC data centers, securing a $6.7 billion co-hosting contract with CoreWeave. Iris Energy Ltd IREN is also exploring AI opportunities, appointing Morgan Stanley to seek deals for its mega sites in Texas.
“We’re seeing a new gold rush, but this time it’s split between Bitcoin and AI,” said Chhugani. “Miners are hedging their bets and leveraging their infrastructure expertise.”
The analysis also revealed varying levels of operational efficiency and profitability among miners. Core Scientific led with the lowest all-in hash cost of $30, while Riot’s costs were higher at $50 (adjusted for power credits).
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What’s Next: Looking ahead, Bernstein expects mining margins to improve in the fourth quarter as Bitcoin prices potentially rise due to institutional ETF flows.
The firm maintains Outperform ratings on Riot, CleanSpark, Iris Energy and Core Scientific, while rating Marathon Digital as Market-Perform.
“The Bitcoin mining sector is evolving rapidly,” Chhugani noted. “Those who can adapt to the new playbook will likely outperform in this dynamic market.”
These topics and more are likely to be key points of discussion at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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