Consolidation is nothing new. If you’re old enough to remember the Nash Rambler or the AMC Pacer, you know exactly what we’re talking about.
After financial struggles in the 1980’s American Motors Corporation was bought by Chrysler and became their Jeep-Eagle division.
That's consolidation, and it happens everywhere — even in the wild west world of cryptocurrency.
And that’s what Jeffry has been predicting in the world of Bitcoin miners.
Every four years, there's a pre-programmed event in Bitcoin's code that cuts the reward for mining Bitcoin in half. The most recent halving happened about 10 days ago on April 20th. And it’s a big deal, here’s why:
Historically, this halving has led to a predictable pattern. After the Halving — sometimes as much as 200 days later — there’s a big price jump for Bitcoin. It can take 12-18 months to complete that part of the cycle.
But after the bullish action, we always have a Crypto Winter. Historically, this Crypto Winter can see Bitcoin lose up to 60% of the gains it made after the Halving.
This coming winter will be a a test for crypto miners, especially the smaller ones.
Remember, after the Halving, the reward for mining Bitcoin is cut in half. That's less money coming in, and if a miner already has a shaky financial footing, with a lot of debt for example, this winter could be brutal.
That's where consolidation comes in, just like with the car companies. The bigger, healthier miners will be in a better position to weather the storm, and they'll likely start absorbing the smaller, struggling ones. It's a way for the industry to streamline and strengthen itself.
So, the question becomes: which miners will survive this crypto winter and come out stronger on the other side?
Jeffry spent some time digging into the details of several major miners, names you might recognize if you follow crypto at all: Marathon Digital Holdings (MARA), Cleanspark (CLSK), Hut 8 (HUT), Bit Digital (BTBT), Hive (HIVE) and others.
After all his research, Jeffry sees two clear winners emerging from the next crypto winter: Marathon Digital Holdings (MARA) and Cleanspark (CLSK).
Why these two? It comes down to three key factors:
- Debt
- Company size
- and Management
While both MARA and CLSK have some debt, they're much bigger than their competitors, which gives them a financial cushion during the winter. Plus, Jeffry believes their management teams are sharper and more experienced, which will be crucial when things get tough.
In fact, both MARA and CLSK are the #1 and #2 largest Bitcoin miners by market cap:
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