Bitcoin Mining Hashrate Hits New ATH

Welcome to the Bitcoin Miner Stocks Report. The focus of this newsletter is on helping you make money trading this industry’s stocks. Each issue contains 18 different Bitcoin miner stock charts with swing trading and longer-term investing targets. And don’t forget, we will have interviews with analysts, researchers, and industry participants each month.

In addition, each week we will be bringing you links to the latest industry news and information as well as providing commentary when needed. Along with the news and info we will be including industry-specific social media posts so you know which accounts to follow for even more information.

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Bitcoin Miner Weekly Report: October 14-20, 2024

The dynamics of Bitcoin mining have changed a lot recently, reflecting broader trends within the industry. Among the key events were increased revenues for miners, growing hashrates, and strategic moves by major U.S.-listed mining firms.

Rising Hashrate and Profitability Challenges

The global Bitcoin network hashrate increased 4% this month, continuing its upward trajectory from the beginning of this year. This month, US-listed miners also set a new record of 28.9% for market share of the network's hashrate. That was the result of some key US players having invested in better equipment to boost their technological edge amid strategic expansions taken by companies such as Marathon Digital and Riot Platforms. However, Jefferies has warned that with rising hashrates, October could turn out to be a tough month for miners owing to flat Bitcoin prices and higher operational costs, as profitability would turn tighter than in the past.

U.S. Miners Leading the Pack

U.S.-based mining firms continue to lead the industry, according to JPMorgan-which reported that the group's collective hashrate has grown almost 70% year-to-date. Public companies like Marathon Digital have played an instrumental role in the path to improved efficiencies and financial gains. Marathon led among companies, mining 705 BTC in September and continuing to build on that success throughout the first week of October. This is part of the broader trend that U.S. miners are locking in long-term energy contracts and investing in scalable infrastructure well in advance of the 2024 U.S. elections.

Miner Revenue Boost and Strategic Accumulation

Despite concerns about profitability, miner revenues increased 19% month-over-month, buoyed by higher transaction fees and a slight swell in the price of Bitcoin, which briefly broke above $69,000 this week. Activity is boosted partly by the proliferation of high-fee transactions related to emerging applications built atop Bitcoin, such as "Runes." Also, miners have been holding back the sale of Bitcoin amidst current market conditions. This echoes strategies from firms like MicroStrategy, which accrue Bitcoin to protect against eventual market reversals.

Energy and Sustainability Efforts

While global scrutiny around energy use in Bitcoin mining continues to linger, many US miners have taken steps in a bid to reduce environmental impacts. For instance, CleanSpark continued to invest in renewable energy solutions by reducing reliance on fossil fuels. The move addresses regulatory concerns while also helping the miners to secure cheaper and more stable power sources vital for maintaining profitability amid growing competition.

Industry News and Info

Here are the latest updates in the Bitcoin mining industry over the past week:

Here are some key developments in the Bitcoin mining space from the third week of October 2024:

• Bitcoin Hashrate Hits All-Time High: Bitcoin’s hashrate reached a new all-time high, reflecting increased competition and confidence in the network. Publicly listed mining companies now control a record share of the network, benefiting from advanced hardware and efficient operations. This expansion highlights a trend of consolidation, with these firms leveraging economies of scale to dominate the mining industry. Coindesk

• PWC Pursues Bitcoin Miner for Massive Debt: PwC has received court approval to pursue Bitcoin mining company IREN for a $153 million debt. The accounting firm is seeking to recover the funds after IREN defaulted on loans, signaling financial troubles within the company. This legal move underscores the challenges faced by Bitcoin miners in managing debt amid market volatility. AFR

• Riot Platforms: Riot Platforms continues to lead the Bitcoin mining industry, benefiting from its large-scale operations and strategic investments in advanced mining technology. The company's recent expansion efforts have increased its hash rate capacity, solidifying its competitive edge. Despite market fluctuations, Riot remains focused on optimizing operations and reducing costs, positioning itself for long-term success in the sector. Yahoo!Finance

• Northern Data Shifts Focus: Northern Data, Europe's largest Bitcoin miner, is considering selling its mining division, Peak Mining, to focus on its growing AI Solutions business. This strategic shift aims to capitalize on the increasing demand for AI services, leveraging its existing infrastructure to expand in the high-performance computing (HPC) sector. The company plans to reinvest proceeds from the sale into further development of AI capabilities, signaling a broader trend of diversification among Bitcoin miners. CryptoSlate.

• Bitcoin Miners: Recent data shows an unusual spike in Bitcoin miner transactions to exchanges, which could indicate potential selling pressure. This activity, tracked by the "Miner to Exchange Transactions" metric, suggests that miners are moving more Bitcoin to platforms, often associated with plans to sell. While the overall market impact is uncertain, investors are advised to monitor this trend closely, as it may signal upcoming volatility. TradingView

• Choosing Between Hodling BTC and Upgrading to AI: Following the April Bitcoin halving, miners are split between holding onto their Bitcoin in hopes of future price increases and investing in artificial intelligence (AI) infrastructure. Companies like Marathon and Riot Platforms have opted to hold their mined Bitcoin, while others, such as Core Scientific, are shifting towards AI, resulting in better stock performance. This strategic divergence highlights different approaches to maximizing value in a post-halving market environment. CryptoSlate

Digging Around In Social Media

Charts

RIOT Blockchain ($RIOT)

Price continued rallying last week into the 38.2% retracement level target area of $10.19 around the descending wedge resistance as expected. Breaking out impulsively and closing above the blue weekly pivot at $13.15 will signal that wave (ii) is likely complete. Further break out above the wave b extreme at $18.75 will add confidence to the count. Wave (iii) has a minimum expected target of $141.00. Overall the low does appear to be closer than not at this time.

*Target placement is not based on time. I only focus on the target levels.

Marathon Digital Holdings ($MARA)

Price rallied higher last week breaking out above the wave (B) extreme at 18.84 which increases the likelihood significantly that the low is likely in. Breaking out above the wave ((X)) extreme at $27.30 will add confidence to the count and indicate that wave iii is in progress toward a new cycle high above $34.09.

Breaking down below wave ii instead will keep wave ii alive with targets of the 70.5% and 78.6% retracement levels of $11.35 and $10.00 respectively.

*Target placement is not based on time. I only focus on the target levels.

CleanSpark ($CLSK)

CLSK rallied another 20% this past week, impulsively breaking out and closing above $12.20 in the process. This signals that wave 2 is likely complete. Further break out above the wave ((b)) triangle resistance at $20.49 will add confidence to the count and signal that wave 3 is in progress. As mentioned previously, wave 2 may be complete a bit short at the S1 pivot on the daily. But continued decline keeps it alive with a target of the 50% retracement level at $6.59.

*Target placement is not based on time. I only focus on the target levels.

Bitfarms Ltd. ($BITF)

Price rallied further and printed an impulsive break out and close above the daily blue pivot today. This signals that the pullback is likely complete. Breaking out above $3.15 will add confidence to the count and signal that wave c of (v) ((i)) is in progress. As mentioned previously, this chart appears to be printing a leading diagonal for the large wave degree count. Wave (v) of ((i)) has an expected target of $6.40. Breaking out above that target level will require an adjustment to the count, but that adjustment would be even more bullish than this current count.

*Target placement is not based on time. I only focus on the target levels.

Hut 8 Corp. ($HUT)

Price rallied another 20%+ this past week while impulsively breaking out and closing above the weekly pivot at $13.37. This indicates that the pullback is likely complete. Further break out above the R2 pivot at $16.19 will signal that wave c is likely in progress with an initial target of $29.95, followed by $40.00 and $67.60.

Breaking down below the daily pivot however will give us an initial downside target of the LVN area around $10.68 followed by the S1 pivot.

*Target placement is not based on time. I only focus on the target levels.

Argo Blockchain ($ARBK)

Price has continued to struggle with breaking out above the daily pivot. A break out above wave (X) at $1.35 will add confidence to the count and give us a minimum expected wave ((3)) target of $1.98. But the proximity of the recent low to the wave (ii) low still has me cautious at this time. An impulsive break out and close above $1.28 will signal that wave ((2)) is likely complete.

Breaking down further instead may suggest that a large wave ((ii)) flat correction is nearing completion instead of the current count. That would give us an initial downside target of the 0.9201 area.

The larger degree wave (iii) has a minimum expected target of $3.02.

We need to see a break out above the wave (b) extreme at $2.92 to add confidence to the wave ((v)) count. Wave ((v)) of 1 has a minimum expected target of $4.73. Continued rally above that level may suggest that a different count is playing out in which wave ((iii)) is in progress rather than wave ((v)). I will update the count to that alternate scenario if the need arises.

*Target placement is not based on time. I only focus on the target levels.

Hive Digital Technologies ($HIVE)

Price rallied further this week, breaking out above the wave (B) extreme at $3.67. This signals that waves ((2)), ii. and (ii) are likely complete. Wave ((3)) has a minimum expected target of $4.29 or secondary target of $4.84. The larger degree wave iii has a minimum expected target of $7.43.

Breaking out above the wave b extreme at $6.84 will add confidence to the wave (iii) count. Wave (iii) has a minimum expected target of $13.85.

*Target placement is not based on time. I only focus on the target levels.

Terawulf Inc. ($WULF)

Price rallied another 35% this past week. In doing so, it has broken out above $4.86 which signals that the pullback is likely complete and price is headed toward a break out above the wave ((iii)) extreme. It has also hit the local upside target of $6.11. Wave ((v)) has an expected target of $11.10 based on the current height of wave ((iv)). We are more likely than not to see a pullback soon which could see price targeting the daily blue pivot area around $4.59.

*Target placement is not based on time. I only focus on the target levels.

IRIS Energy Limited ($IREN)

Price rallied just enough so far to break out above the local swing high at $9.41. This gives us the local minimum expected target of $12.59. Wave 5 has an expected target of $28.30 based on the height of wave 4.

*Target placement is not based on time. I only focus on the target levels.

Core Scientific, Inc. ($CORZ)

We saw price rejected at the daily R1 pivot and pull back halfway between it and the daily blue pivot so far. While price remains above that blue pivot we should expect it to rally higher. Wave ((v)) appears to be in progress toward an initial target of $17.71 based on the height of wave ((iv)) followed by a possible secondary target of $19.55.

*Target placement is not based on time. I only focus on the target levels.

Cipher Mining Inc. ($CIFR)

Price has rallied another ~18% this past week and is currently breaking out above the range resistance. In doing so, it broke out above our target of $4.83. We are likely to see the rally take a breath soon and pull back a bit before continuing higher once more. That pullback is likely to target the blue daily pivot area around $3.60. Overall, we still have a target of $15.76 based on the height of the pullback from July 15th’s swing high.

*Target placement is not based on time. I only focus on the target levels.

Stronghold Digital Mining Inc. ($SDIG)

Price has continued to rally and break out above the daily blue pivot so far. This signals that the pullback is likely complete. We still have a local upside target of $6.83. Wave (iii) has a minimum expected target of $11.88. A breakdown below the swing low of $3.90, instead, would likely see price filling in the gap and targeting $2.59.

*Target placement is not based on time. I only focus on the target levels.

Bitdeer Technologies Group ($BTDR)

Price has continued to push higher albeit less impulsively than the previous week. Breaking out above the lower wave x extreme at $8.93 will signal that wave (ii) is likely complete. Further break out above the upper wave x extreme at $11.93 will add confidence to the count and signal that wave (iii) is likely in progress toward a minimum expected target of $23.13.

*Target placement is not based on time. I only focus on the target levels.

Mawson Infrastructure Group Inc. ($MIGI)

The rally continued this past week and price has broken out above the wave ((X)) extreme at $1.42. This suggests that wave ii is likely complete. That gives us a minimum expected wave iii target of $7.09.

*Target placement is not based on time. I only focus on the target levels.

Bit Digital Inc. ($BTBT)

Price rallied over 20% this week and is currently sitting at the daily R1 pivot. We still have a target of $5.72 now that price has broken out above $3.99.

A break out above the wave b extreme at $3.99 will add confidence to the count. Wave (iii) has a minimum expected target of $9.95. Breaking down below wave ((ii)) at $1.76 instead will invalidate the count.

*Target placement is not based on time. I only focus on the target levels.

Greenidge Generation Holdings Inc. ($GREE)

Price pulled back and then rallied a bit higher this past week. We still need to see a break out above the wave b of (y) extreme at $3.03 to signal that wave ((ii)) is likely complete. Further break out above the wave (x) extreme at $3.64 will add confidence to the count and indicate that wave ((iii)) is in progress toward a minimum expected target of $34.83.

Wyckoff analysis indicates that accumulation remains in progress since June 2023. But the inability of price to print a spring below the range support suggests a lack of conviction by supply to drive price lower. This is inline with the Elliott Wave count as labeled in the chart.

Breaking down below the range support will invalidate the count and likely print a spring to start the first wave up at that time.

*Target placement is not based on time. I only focus on the target levels.

Ebang International Holdings Inc. ($EBON)

Price continues to struggle with breaking out impulsively above the daily blue pivot. An impulsive break out and close above the daily blue pivot will signal that the pullback is likely complete. A close above $6.58 will add confidence to the idea that the pullback is complete and give us a minimum expected target of $8.14. Further break out above the wave iv of (c) extreme at $9.50 will add much more support for that scenario.

Breaking down below wave ((ii)) at $5.34 instead will keep wave ((ii)) alive with a target of $4.43.

*Target placement is not based on time. I only focus on the target levels.

GRIID Infrastructure Inc. ($GRDI)

Finally! Price broke out and closed above the descending channel resistance. Not only that, but it rallied just over 40% this past week. That gave us the impulsive break out and close above $0.9725 that we were looking for to signal that the pullback is likely complete. Further break out above $1.37 will add confidence to the idea that the bottom is in. That will give us an initial local target of the June 27th gap at $1.85 followed by the blue supply structure’s EQ at $2.76.

*Target placement is not based on time. I only focus on the target levels.

DigiHost ($DGHI)

We saw a ~26% rally this past week. That rally gave us an impulsive break out and close above the blue daily pivot which signals that the pullback is likely complete. Further break out above the wave ((B)) triangle resistance at $1.52 will add confidence to the wave iii count. Wave iii has a minimum expected target of $5.10. Breaking down below the wave ii extreme at $0.84 instead will invalidate that count. The larger degree wave ((iii)) has a minimum expected target of $20.25.

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The Bitcoin Miner Stocks Report does not operate as a registered investment advisor. This document is provided purely for informational purposes and does not constitute an offer or invitation to buy or sell any financial instruments. The viewpoints expressed are derived from historical data analysis and are deemed reliable, though their accuracy is not assured. Readers are entirely accountable for any decisions made based on this information.

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