Major miners increase capacity and prepare for reporting

The crisis faced by the mining industry has affected even the largest companies. For example, one of the market leaders Core Scientific declared bankruptcy. The year 2023 started more positively, so the attention of experts is focused not only on the upcoming reporting period but also on the plans to deploy new capacities. 

In particular, CleanSpark is ready to acquire assets and achieve the hashrate targets that were set for the end of the year. The CEO of BTC Miner is positive and believes that things are starting to change. He also noted the strong focus on power costs and new contracting. 

DA Davison, an investment firm, explained the criteria by which cryptocurrency mining companies are evaluated:

Based on the fact that the cost of electricity has decreased, we expect increased competition. However, preference is given to miners who have access to the cheapest resources and have sufficient liquidity. 

Similar criteria are highlighted by the investment company Stifel.

Such structures have a healthy balance, which helps to survive the crisis of market volatility. 

Representatives of Stifel especially noted the stable position of Hive and Hut 8.

Galaxy Digital representative Amanda Fabiano expressed interest in miners’ asset management strategies. It is due to the situation in which the companies found themselves last year when they were forced to sell off mined coins at a low cost to cover operating expenses. 

For many investors, investing in mining stocks is similar to investing in bitcoin. But not all companies are the same. 

Last year showed different strategies. When some thought about expanding capacity, while other companies tried to build better infrastructure and find access to cheaper energy without large-scale growth and leverage. Time has shown that the adherents of the second strategy are the winners.