Title: "Are Bitcoin-listed mining companies becoming high-quality investment targets? The top 10 have mined over 20,000 BTC this year, and the transformation and integration after the halving bring new changes"
Author: Nancy, PANews
Heavy acquisitions of chip developers to develop new products, huge investments in purchasing mining machines/mining farms to expand computing power, renting data centers to increase revenue sources, diversifying and transforming business through AI exploration, selling a large number of company shares or bitcoins to raise funds, significantly increasing shareholdings to "swallow" competitors… After the halving event, the successive news is presenting the true colors of mining companies under the test of survival.
In fact, since entering 2024, the movements of listed mining companies have become the focus of capital attention. Especially recently, former US President Donald Trump has publicly supported Bitcoin mining activities, which has driven the market's bullish sentiment towards mining companies. According to CompaniesMarketCap data, as of June 18, the total market value of 21 listed mining companies in the United States has risen to $28.8 billion.
As mining companies face increasingly brutal reshuffles and integrations, future market share will concentrate on mining companies with more robust capital, and many institutions have given investment advice on mining companies. For example, Bernstein advises investors to buy stocks of outstanding performing crypto mining companies; 10x Research recently stated that stocks of crypto mining companies may further rise and recommended investment under the potential bullish trend of Bitcoin.
This article from PANews takes stock of the top 10 market value US-listed mining companies. From the market trends, these companies have collectively mined over 21,000 bitcoins this year. With the significant compression of profit space after the halving of Bitcoin, these companies have proposed countermeasures. The competition among mining companies in terms of computing power expansion, business transformation, and mergers has already begun. In terms of stock performance, the top ten listed mining companies have an average highest increase of about 88.3% this year, with a total market value exceeding $24.6 billion, accounting for over 91.6% of the overall market size (the following data is as of June 17).
Marathon Digital Holdings (MARA) Market Value: $5.5 billion
Marathon Digital Holdings is the largest publicly traded Bitcoin mining company. According to Bitcointreasuries.net, Marathon holds over 17,000 bitcoins. In 2023, Marathon mined 12,850 bitcoins, generating over $380 million in revenue. So far this year, Marathon has mined 4,277 bitcoins.
In the past few months, Marathon has been continuously optimizing mining machine products and expanding its computing power. The company plans to increase its computing power to 50 EH/s by the end of 2024, doubling from the beginning of the year. For example, Marathon Digital acquired a Bitcoin mining data center from Applied Digital for $87.3 million, collaborated with NiceHash to launch custom firmware for Bitcoin ASIC miners optimized for the NiceHash mining platform, and introduced mining products MARAFW firmware and MARA UCB 2100 control board to improve the efficiency and performance of Bitcoin miners. In addition, Marathon has diversified its business, including launching Bitcoin sidechains and related development platform Anduro, and signing an agreement with Kenya to invest over $80 million to develop the energy infrastructure of the African country.
CompaniesMarketCap data shows that Marathon's market value has reached $5.5 billion, ranking 2473rd globally, a more than 14.1-fold increase from 2022. Google Finance shows that MARA has risen by as much as 35.3% since the beginning of this year.
CleanSpark (CLSK) Market Value: $4.03 billion
CleanSpark's market size is second only to Marathon. In the first quarter of this year, CleanSpark's net profit exceeded $126.7 million, a 163% year-on-year increase. According to Bitcointreasuries.net, CleanSpark holds 6,154 bitcoins. From 2024 to date, CleanSpark has mined 3,746 bitcoins.
In the past few months, CleanSpark has been increasing production and expanding its computing power, including plans to purchase 160,000 Bitmain S21 mining machines, with the initial order value of 60,000 machines reaching $193.2 million, and spending over $23 million to acquire four Bitcoin mining facilities. In addition, CleanSpark also plans to launch an internal Bitcoin trading platform this year to maximize the return on its holdings of cryptocurrencies.
CompaniesMarketCap data shows that CleanSpark's market value is approximately $4.03 billion, a 1.98-fold increase from 2023. Google Finance shows that CLSK has risen by as much as 103.1% since the beginning of this year, causing short sellers to lose over $100 million.
Riot Blockchain (RIOT) Market Value: $3.04 billion
Riot Blockchain was one of the most financed mining companies in the first quarter of 2024, with a net profit of over $210 million, setting a new quarterly performance record. According to Bitcointreasuries.net, Riot currently holds 9,084 bitcoins. Riot produced 6,626 bitcoins throughout last year, setting a new record of $281 million in total revenue. So far this year, Riot has mined 1,954 bitcoins.
Riot is expanding its market share. On the one hand, Riot raised $559 million through stock issuance for the large-scale purchase of WhatsMiner mining machines from MicroBT, and spent $97.4 million to purchase 31,500 Shenma mining machines. On the other hand, Riot plans to acquire competitor Bitfarms for $950 million in stock value, but was rejected by the latter and attempted to reject the acquisition through a "poison pill" strategy. Subsequently, Riot began to significantly increase its holdings of the latter's stock, with the current shareholding increasing to 14%. Riot is also considered by Bernstein to be the most suitable mining company for industry consolidation, with over $1.3 billion in cash and bitcoins on its balance sheet.
CompaniesMarketCap data shows that Riot's market value is $3.04 billion, with no significant change from last year. Google Finance shows that RIOT has risen by as much as 14.5% since the beginning of this year.
Phoenix Group (PHX.AE) Market Value: $2.96 billion
Phoenix Group completed a $371 million IPO at the end of last year on the Abu Dhabi Stock Exchange, attracting $12 billion in funds, oversubscribed 33 times. Reports indicate that International Holding Co., the largest business group in Abu Dhabi controlled by important members of the UAE royal family, purchased 10% of its shares.
According to Phoenix Group's financial report for the first quarter of this year, its total assets surged 237% year-on-year, from $261 million to $879.3 million; net profit reached $66.2 million, a 166% year-on-year increase. Phoenix Group is also continuously expanding its mining machine scale and announced at the beginning of the year the purchase of $187 million worth of Bitcoin mining machines from Bitmain.
CompaniesMarketCap data shows that Phoenix Group's market value is $2.96 billion. Google Finance shows that PHX.AE has risen by as much as 4.6% since the beginning of this year.
Iris Energy (IREN) Market Value: $1.93 billion
Iris Energy has been referred to by JPMorgan as an early entrant into high-performance computing and has the right to develop over 2 GW of power. Currently, Iris Energy holds over $320 million in assets on its balance sheet, and the company has disclosed that it has mined 1592 bitcoins this year. According to Iris Energy's latest financial report for the third quarter of the 2024 fiscal year, its Bitcoin mining revenue reached $53.4 million, with a profit of $8.6 million for the quarter. Iris Energy plans to increase its computing power to 30 EH/s this year through revising and signing new agreements with Bitmain and additional construction of a 50MW data center capacity in the Childress area in 2024.
CompaniesMarketCap data shows that Iris Energy's market value is $19.3 billion, a 4.1-fold increase from last year. Google Finance shows that IREN has risen by as much as 232.1% since the beginning of this year.
Core Scientific (CORZ) Market Value: $18.3 billion
Core Scientific is one of the largest Bitcoin mining companies in the United States and has previously filed for Chapter 11 bankruptcy protection. In January of this year, Core Scientific's restructuring plan was approved by the US Bankruptcy Court and the company relisted on Nasdaq. The company also plans to enter the AI field, including signing a multi-year contract with AI supercomputing company CoreWeave to provide up to 16MW of data center infrastructure to support AI and HPC workloads, with potential revenue exceeding $100 million. Core Scientific also announced a 12-year contract with CoreWeave, expected to generate an average annual revenue of about $290 million, with total revenue exceeding $3.5 billion over the 12-year period. Additionally, Core Scientific rejected a proposal from CoreWeave to acquire the mining company for $5.75 per share, totaling about $1 billion.
According to Core Scientific's financial performance data for the first quarter of the 2024 fiscal year, it generated net revenue of $2.107 billion. So far this year, Core Scientific has produced 4076 bitcoins. Despite facing bankruptcy issues last year, Core Scientific still mined 19,274 bitcoins.
CompaniesMarketCap data shows that Core Scientific's market value has reached $18.3 billion, a 70.3-fold increase from 2023. Google Finance shows that CORZ has risen by as much as 300% since the beginning of this year.
Cipher Mining (CIFR) Market Value: $15.3 billion
Cipher Mining, formerly a subsidiary of Bitfury, announced a share distribution plan in January of this year, planning to reduce its stake from 75% to less than 20%. Before the Bitcoin halving, Cipher Mining purchased 16,700 new mining machines and planned to deliver them in the second quarter, bringing the company's total self-mining capacity to 8.4 EH/s.
Cipher Mining's net revenue reached $40 million in the first quarter of 2024. So far this year, Cipher Mining has produced 1483 bitcoins. According to Cipher Mining's latest plan, it will undergo a significant upgrade of mining equipment to increase hash rate to 13.5 EH/s by the end of 2024, with mining machine efficiency reaching 18.6 J/TH.
CompaniesMarketCap data shows that Cipher Mining's market value is $15.3 billion, an increase of 44.3% from last year. Google Finance shows that CIFR has risen by as much as 29.1% since the beginning of this year.
Bitdeer Technologies Group (BTDR) Market Value: $13.8 billion
Bitdeer announced unaudited financial performance and operational updates for the first quarter of 2024, with total revenue of $119.5 million, a 64.6% year-on-year increase, and a net profit of $600,000, compared to a net loss of $9.5 million in the first quarter of 2023. Revenue growth was mainly due to increased self-mining computing power and increased Bitcoin production, leading to increased revenue from the company's self-mining business. Additionally, as of March 31, 2024, the company's cash and cash equivalents amounted to $118.5 million. Bitdeer has produced 1360 bitcoins so far this year.
Bitdeer has increased its research and development efforts for mining machines this year. For example, in March, Bitdeer announced that the energy efficiency ratio of the designed Bitcoin mining chip SEAL01 can reach 18.1 J/TH, reducing operating costs and reducing miners' environmental footprint. This month, Bitdeer announced plans to acquire ASIC chip design company Desiweminer for $140 million in an all-stock transaction to enhance its hardware development capabilities. Bitdeer also announced the technical roadmap for the SEALMINER Bitcoin mining machine, aiming to increase mining industry transparency. The first batch of SEAL01 chips is expected to be mass-produced and delivered in the third quarter of 2024, and the second generation SEALMINER mining machine is expected to begin mass production and delivery in the fourth quarter. The third generation SEAL03 and fourth generation SEALMINER mining machines are expected to be delivered in 2025. Bitmain has also launched two new mining machines, the Antminer S21XP and S21XP Hydro, among others.
At the end of May, Bitdeer also announced the completion of a $150 million private placement, which will be used to fund the expansion of its data centers, ASIC-based mining machine development, as well as for operating capital and other general corporate purposes. According to Tether Holdings Limited, it has disclosed that it holds a 25% stake in Bitdeer, making it the second largest shareholder of the Bitcoin mining company.
CompaniesMarketCap data shows that Bitdeer's market value is $13.8 billion, an increase of over 26.6% from last year. Google Finance shows that BTDR has risen by as much as 12% since the beginning of this year.
TeraWulf (WULF) Market Value: $13 billion
According to TeraWulf's latest announcement, as of May 31, 2024, the company's operational infrastructure capacity includes 160 megawatts at the Lake Mariner facility and 50 megawatts at the Nautilus facility, with the company's total self-mining hash rate at approximately 8.0 EH/s, an 82% year-on-year increase. TeraWulf is also constructing a data center with a capacity of 30 megawatts, and it is expected that the total mining capacity in the second half of this year will exceed 10.0 EH/s. Additionally, TeraWulf is advancing a 2.0 MW AI pilot at Lake Mariner, aimed at adapting to next-generation GPU technology.
TeraWulf has produced 1590 bitcoins so far this year. CompaniesMarketCap data shows that TeraWulf's market value is $13 billion, nearly 2.4 times higher than last year. Google Finance shows that WULF has risen by as much as 123.3% since the beginning of this year.
Bitfarms (BITF) Market Value: $11.8 billion
Bitfarms is the target of Riot's planned acquisition and is currently taking "poison pill" measures to prevent the company from being subject to unsolicited acquisition and attempting to reduce its attractiveness.
According to Bitfarms' disclosed financial performance for the first quarter of 2024, its first-quarter computing power reached 7.0 EH/s, producing an average of 10.4 bitcoins per day, with total financial revenue reaching $50 million, a 9% increase from the fourth quarter of 2023. So far this year, Bitfarms has mined 1368 bitcoins. Bitfarms is currently expanding its computing power and upgrading its mining equipment, including investing nearly $240 million to upgrade its Bitcoin mining equipment to triple its computing power to 21 EH/s to maintain profitability after the Bitcoin halving in 2024.
CompaniesMarketCap data shows that Bitfarms' market value is $11.8 billion, an increase of 26.8% from last year. Google Finance shows that BITF has risen by as much as 28.9% since the beginning of this year.
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