Mega Miner's Lose Big

Tickers: $RIOT $MARA $BITF $CORZ $IREN $HUT $BTDR $CLSK $HIVE

If you're regularly listening to The Mining Pod, you probably saw the huge losses and large SG&A costs for public miners coming. For a lot of regular retail investors interested in Bitcoin mining stocks, though, it probably came as a shock.

To very briefly recap, Riot posted a net loss of $84.4 million for the quarter with Marathon posting a net loss of $200 million.

That's why we brought on TeraWulf CFO Patrick Fleury last month to discuss public finances for Bitcoin miners ahead of the Q2 releases. With the halving occurring in April, public Bitcoin miners essentially saw their revenues cut in half. Try what you will with energy tactics, AI and HPC or any other move, you 're likely to make significantly less money unless the Bitcoin price doubled (hint: it did not).

So what does this mean going forward for investors in companies like Riot and Mara with huge Q2 losses? There's a few scenarios:

1) Use ATMs to grow hashrate: outcompete peers for block rewards and win back their revenues going into the fall. This seems to be Riot play with the attempted purchase of Bitfarms. Buy hashrate and create a mega-miner to get revenues back in step. 

2) Continue to diversify revenue with AI/HPC: This is the Core Scientific play with its Core Weave deal! Also see Irene, Hut 8, Hive and a few others!

3) Get slim and better at operations: This is the Corming, Cleanspark and Bitfarms play. They are long Bitcoin and competing for more via efficient structures and energy.

4) Pray to Lord Satoshi: Hope that a strong bull market floats your balance sheet to Valhalla. While Mara has a few strategies in play, their purchase of $100 million BTC shows they are interested in a swing trade going into the fall to increase book value of the business via assets they control.

5) Play the long game: Bitdeer is the best example here. Long energy, geographic diversification and build out ASIC manufacturing to secure its destiny for the next 20 years. It also doesn’t hurt to have a great relationship with one of the most profitable companies to ever exist, Tether. Fear the deer!

As always, Bitcoin price will really determine who floats and who sinks. And for Bitcoin price, all eyes are on the Federal Reserve’s interest rate decision expected in a few weeks. It’s all one big interest rate trade, after all!

What mining stock do you follow or hold? Let us know with a reply so we can create content around it!