A Seeking Alpha analysis suggests that Bitcoin prices need to rise above $100,000 and sustain this level for miners to remain profitable in 2024 and beyond. This puts mining farms, including companies like Riot and Marathon, at a critical point unless there are changes in hash rate, difficulty, or electricity costs. Interestingly, in 2023, mining stocks have performed well despite Bitcoin’s volatility and stagnant prices. Typically, the performance of mining stocks is closely tied to Bitcoin’s performance, but this trend was broken in most of 2023. The upcoming halving event raises questions about the profitability of miners, with the report indicating that BTC prices must surge above $100,000 for long-term sustainability. Mining companies may be forced to issue new shares and dilute their stock prices to secure operational funding.
AI Sentiment: Positive
