CleanSpark CEO Zach Bradford said in an interview with analysts at research and brokerage firm Bernstein that he expects Bitcoin to reach nearly $200,000 this cycle.
“Current analysis suggests that Bitcoin could peak below $200,000 in the next 18 months. Perhaps it will peak. But I think we will see a rapid takeoff and hopefully a prolonged rally before we revisit the bear cycle,” Bradford told Bernstein’s Gautam Chhugani, according to a note to clients on Monday.
“One positive sign is that Bitcoin’s extended lock-in period shows that sustained bulls can also last longer. “Of course, this can all vary depending on macro events and other factors,” he said.
Historically, the period following a halving tends to see positive adjustments in the Bitcoin price, influenced by capital movements and election cycles, Bradford added. “I think we will see the price of Bitcoin start to rise meaningfully by January after the election, which will result in significant margin expansion for well-positioned miners with efficient cost structures.”
Bradford also said that while he has seen the US presidential election in November impact the price of Bitcoin, it is more important where the election ends rather than who wins, which helps reduce uncertainty. The CleanSpark CEO added that he believes the Fed is a little late in cutting interest rates and expects the central bank to become more aggressive in the next 15 to 16 months. This bodes well for Bitcoin.
Bitcoin, not AI
As AI diversifies Bitcoin BTC
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Miner stocks like Core Scientific, IREN, and Terawulf Bradford said Bitcoin-focused operators are currently being underestimated because mining infrastructure is recovering more quickly.
Pure Bitcoin miners have lower capital expenditure costs and faster energy supply compared to the much longer gestation period of AI data centers, and “energy supply and cash flow times” are measured in weeks rather than years, he argued. However, he acknowledged that certain miners have the right AI business model, without naming the companies.
While the focus on Bitcoin could lead to more volatility, Bradford said it is important to time the market effectively. He highlighted CleanSpark’s strategy of selling near peaks and accumulating mined Bitcoin during economic downturns. According to Bradford, the company holds 97% of the Bitcoin mined since June 2023, with current holdings approaching 8000 BTC ($509 million), and plans to fund non-dilutive growth in future bull markets.
The CleanSpark CEO added that the company’s strength lies in acquiring smaller sites, ranging from 25 MW to 75 MW, at less than $500,000 per MW, much cheaper than its peers. In this way, CleanSpark has been able to scale up to 1GW of power contracts across five US states, which Bradford believes is being underestimated in the market.
With the rapid advancement of Bitcoin mining equipment, Bradford expects the efficiency of next-generation chips to reach 11J/TH, at which point the form factor of the machines will change due to power intensity and heat generation.
This means the facility must convert from air cooling to immersion cooling, which is a focus of CleanSpark, Bradford said. Immersion cooling also has the benefit of reducing noise pollution, potentially helping Bitcoin miners gain local authority approval for field applications.
However, once mining volumes reach 15J/TH, the benefits of upgrading to new chips are limited, Bradford added. This could lead to lower mining equipment costs as competition increases from Bitmain, the dominant maker of Bitdeer and Jack Dorsey’s Block.
Bernstein rates CleanSpark as an outperformer with a $30 target price. CLSK’s stock price closed at $10.13 on Friday, according to TradingView.
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