As the 2024 Bitcoin halving approaches, leading miners are upgrading their facilities to increase efficiency and increase hash rate
Leading Bitcoin (NASDAQ:BTC USD) Miners are working hard to increase production and efficiency ahead of the Bitcoin halving in 2024. The block reward is scheduled for some time between April 19th and 20th and will drop from 6.25 to 3,125.
Bitcoin halving occurs every four years, causing deflation. Bitcoin investors are watching the event as it often drives up the price of the cryptocurrency, which is currently in need of a boost after falling 8% below $62,000 due to global fears.
Consequently, our first choice by mid-2024 will be a Bitcoin miner expanding its capacity at a new facility. 31,500 advanced miners are part of the facility’s modernization, increasing operational hash rate capacity by 22%.
To increase sustainability, another major Bitcoin miner built a 200-megawatt data center alongside a renewable energy source. This shift toward environmental responsibility and cost efficiency is expected to reduce operating costs by 20%. In March 2024, this miner was ready for the halving with a working hash rate of 18.3 EH/s.
A third miner completes the group, deploying highly efficient equipment to capitalize on post-halving momentum and quadruple its fleet by mid-2024.
Aside from ambitious strategies to increase efficiency ahead of the fourth halving, all three Bitcoin miners offer double-digit upside potential of up to 151%.
Riot Platforms (RIOT)
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Riot Platforms (NASDAQ:REVOLT) needs to change its approach before the Bitcoin halving as it hasn’t worked so far. The Bitcoin miner generated 425 Bitcoins in March 20242% more than last month, but 39% less than last year.
At the end of the month, the deployed hash rate was 12.4 EH/s, the same as in February but higher than 10.5 a year earlier. It goes without saying that this is not good news ahead of the start of halving season.
However, the company is Development of the Corsicana facility to increase mining capacity. It is expected to increase to 400 MW and 1 GW. Operations will be simplified by a 400 MW substation and immersion systems in April 2024.
Riot replaced failing miners with 31,500 MicroBT M60S miners to improve the efficiency of the Rockdale facility. The restoration will increase the facility’s hash rate capacity from 12.4 EH/s to 15.1 EH/s by July 2024.
Riot has Added 33,000 rigs to prepare for the Bitcoin halving in 2024 and increase its operations by 18 EH/s. Riot can mine 38 EH/s itself when all of its platforms are online in the second half of 2025.
In 2025, the self-mining hash rate capacity of 41 EH/s is expected to be reached when all Corsicana Facility miners are operational. Riot has placed purchase orders for miners to increase its mining capacity to over 100 EH/s in the coming years to become the leading Bitcoin-based infrastructure provider.
Analysts rate RIOT as a strong buy, predicts an upside of 116% based on a price target of $19.67. The forecast is based on 9 analyst reviews, all of which are rated “Buy”.
Marathon Digital Holdings (MARA)
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Like Riot platforms, Marathon Digital Holdings (NASDAQ:MARA) is one of the largest Bitcoin miners in the world and made significant operational and strategic improvements to increase efficiency ahead of the halving.
In Garden City, Texas, It purchased a 200-megawatt plant Bitcoin mining data center near a wind farm. Marathon forecasts a 20% reduction in operating expenses and improved sustainability following this transaction. Marathon Digital Holdings also manages newly acquired locations in Texas and Nebraska without third parties, reducing costs and improving mining efficiency.
Marathon will be operational in March 2024 The hash rate was 18.3 EH/s. As of March 2024, Bitcoin holdings reached 17,381 BTC, with unrestricted cash increasing year-over-year to $324.3 million.
Marathon wants to increase its capacity to 1.1 gigawatts, with a large portion owned and controlled by Marathon.
At the same time, MARA’s financial plan may include selling certain Bitcoin holdings to pay for monthly operations and manage the treasury. 440 Bitcoins were sold in March alone.
There is a Value increase potential of 40%with an average price target of $22.55 (versus previous closing price of $16.11).
Bit Digital (BTBT)
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Bit Digital (NASDAQ:BTBT) will conclude our discussion on Bitcoin miners with plans quadruple its Bitcoin mining fleet to 6.0 EH/s in April 2024.
The miner generated 136.4 Bitcoins in March 2024, a 6% increase from the previous month. As of March 31, the company’s active hash rate was around 2.76 EH/s. Treasury holdings of ETH and BTC were 16,032.0 and 956.6, respectively. The value of its digital asset holdings was approximately $127.7 million as of March 31.
By the end of 2024, the company hopes to increase its revenue from about $50 million to $100 million through the development of its Bit Digital AI business. This includes onboarding new customers and extending existing contracts.
Bit Digital has $34.9 million in cash, $74 million in digital assets and has no debts. With miner rewards halving every 210,000 blocks, a flexible financial structure is crucial.
With 12,752 ETH invested At the end of 2023, the company generated an annual average yield (APY) of nearly 4.25% in October. Bit Digital continues to convert mined Bitcoins into ETH for staking, which generates further revenue via staking incentives.
With an average price target of $5.17, BTBT has an upside potential of 151% from its last closing price of $2.06.
At the time of publication, Faizan Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.