To avoid being in the red, publicly-listed Bitcoin mining companies will need the BTC price to be at least $98,000 by the 2024 halving!

For publicly-listed Bitcoin miners, in particular, a price north of $100,000 may be more of a necessity than a forecast if their business models are to remain profitable. Bitcoin mining stocks have been on a tear this year, outperforming BTC by a wide margin in recent months. While BTC has seen reduced volatility and a period of consolidation, Bitcoin mining companies’ stocks have risen by nearly 100% in a matter of months.

Recent performance of popular BTC mining stocks. Source: Seeking Alpha

A big increase in Bitcoin’s price will therefore be required for miners to remain profitable at today’s hash rate levels.

How high does the BTC price need to go for miners to maintain their current valuations?
A recent report by Seeking Alpha explores BTC mining by examining one popular miner in particular: Riot Platforms. It notes that despite Riot being expected to triple its mining capacity in 2024, the company and Bitcoin miners, in general, could face serious headwinds from the halving. A 50% decrease in BTC block rewards cuts miners’ main source of revenue in half. Miners like Riot can also issue new equity shares to fund their operations. This dilutes existing shares, meaning that even if the company’s underlying fundamentals are sustained, the share price may not keep up.

Do you think BTC can break the 100k price by end of 2024?