A recent analysis by financial services firm Cantor Fitzgerald has raised concerns among Bitcoin miners, suggesting that many may struggle to maintain profitability following the upcoming halving event. 

The report highlights that eleven of the largest publicly traded Bitcoin miners could face significant financial pressure if the price of BTC remains at the current $40,000 level after the halving.

The report identifies Argo Blockchain and Hut 8 Mining as the two miners most likely to face profitability issues after the halving, with their “all in” cost-per-coin rates currently exceeding the current Bitcoin price. 

In total, 11 Bitcoin miners have estimated cost-per-coin exceed the $40,000 level.

In contrast, Cantor analysts expect Singapore-based Bitdeer and U.S.-based CleanSpark to remain profitable, assuming an average Bitcoin price of $40,000 and no significant changes in hash rate. 

See Also: Swan Bitcoin Launches Mining Venture, Plans For Public Listing

The report estimated that the cost-per-coin for Bitdeer is $17,744, while CleanSpark’s stands at $36,896.

The analysis was cited by CleanSpark executive chairman and co-founder Matthew Shultz in a January 25th X post.

*BREAKING – new today!

No matter the department, the entire team at @CleanSpark_Inc is committed to efficiency. EFFICIENCY of Uptime, Equipment, Capital, Operations, Community Engagement, Energy, Strategy, Growth, and other metrics.

Today’s brand new report from the research… pic.twitter.com/YgQ6XrIXh2

— S Matthew Schultz (@smatthewschultz) January 25, 2024

As Bitcoin miners’ revenues are directly tied to the price of Bitcoin, miners may experience increased challenges in ensuring the revenue generated from mining Bitcoin can be profitable after covering operational costs.

The Bitcoin halving, scheduled for April, involves a 50% reduction in the block rewards received by Bitcoin miners. 

While this supply reduction is generally viewed as bullish for Bitcoin’s long-term price prospects, it also means that miners with high operational costs could face severe challenges if the price of Bitcoin does not rise sufficiently to cover these costs.