Miners listed within the U.S. have a bonus over non-public friends as they will elevate capital simply, the dealer stated.
Bernstein stated it sees the massive publicly traded U.S. bitcoin miners as consolidators within the sector.
Main miners ought to concentrate on rising market share and growing their hashrates, the report stated.
Bitcoin (BTC) miners listed within the U.S. have a big benefit over their unlisted friends as a result of their simpler entry to funding provides them extra monetary choices than privately held companies or people who commerce elsewhere, dealer Bernstein stated in a analysis report on Monday.
“With the ability to elevate debt/fairness on the planet’s deepest capital markets, presents a pure benefit versus non-U.S. miners, notably in a capital intensive trade, poised for market consolidation,” analysts led by Gautam Chhugani wrote.
Final week’s fundraising showcases the argument. Marathon Digital (MARA) stated it deliberate a non-public placement of convertibles to purchase bitcoin as a treasury asset. Riot Platforms (RIOT) introduced a $750 million fairness providing. Core Scientific (CORZ) and Bitdeer (BTDR) additionally introduced that they deliberate to challenge convertible debt.
Bernstein stated this helps its lengthy bias in the direction of publicly listed U.S. bitcoin miners being consolidators within the sector.
The dealer famous that the mining trade is cut up between corporations targeted on bitcoin mining and people pivoting to synthetic intelligence (AI) information facilities. Each are viable alternatives, the report stated, and the frequent theme is consolidation as a result of scale issues.
Nonetheless, “bitcoin mining and AI information facilities, whereas adjoining as a consequence of energy capability and excessive density energy specs, are fully totally different companies,” the report famous.
The main miners ought to stay targeted on bitcoin mining market share and rising their hashrates, Bernstein stated, and never promoting the crypto they’ve mined at a loss.
Bernstein reiterated its view that BTC will hit new highs of round $200,000 in 2025 on the again of elevated institutional adoption and the uptake of exchange-traded funds (ETFs), the report added.
Learn extra: Bitcoin Mining Was Much less Worthwhile in July Than June, Jefferies Says
