Bitcoin Miners Face Profit Squeeze After Halving, Mining Stocks Plunge 22% in February

Bitcoin miners are facing significant financial strain due to falling cryptocurrency prices and the Bitcoin halving event in April 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block. A JPMorgan report indicates a 22% drop in mining stocks in February alone. Since the halving, average mining revenues have decreased by 46%, and gross profits have fallen by 57%. The decline in Bitcoin's price in February further contributed to a 9% decrease in gross profits. While companies like Riot Platforms, Bitdeer, Marathon Digital, and Core Scientific reported Q4 earnings, their stock prices still declined. Some miners are exploring alternative revenue streams like high-performance computing (HPC) for AI, but even this market faces uncertainty. Despite these challenges, miners with AI exposure, like Hut 8, are valued higher.