Bitcoin (BTC) mining stocks listed in the U.S. have more than doubled this year after being decimated in the crypto carnage of 2020, according to a research report from broker Bernstein. The resurgence has been driven by two main factors: strong bitcoin price action due to improving sentiment resulting from institutional exchange-traded-fund (ETF) filings, and some bitcoin miners tapping into opportunities in high-performance computing and artificial intelligence (AI) as a revenue diversification strategy.
The report notes that weaker miners with high debt are not able to survive and capitulate during crypto winters, citing the recent bankruptcy of Core Scientific (CORZQ). Bernstein also says the first round of consolidation has already played out and surviving miners are now adding capacity in anticipation of bitcoin halving, when mining rewards are cut by 50%. Wall Street giant JPMorgan also recently said in a report that over time the bitcoin mining industry will consolidate and become more competitive because only miners with lower production costs will be able to survive.