Focus on Growing Capacity and Hash Rate
Sudock, GRIID’s representative, expressed their short-term goals of expanding capacity and increasing the hash rate in an interview with Blockworks earlier this month. Founded in 2018, GRIID began operating bitcoin mining facilities the following year. As of September 30, the company had 20,623 bitcoin mining machines installed, resulting in a total hash rate of 447 peta hashes per second (PH/s), according to a regulatory filing on January 9.
Commitment to Carbon-Free Power
GRIID’s mining facilities currently utilize approximately 67% carbon-free power, with plans to raise this figure to 90% by the end of 2024. The company reported revenues of $2.6 million in the third quarter of 2023, bringing its total revenue for the first three quarters of that year to $8 million.
Public Listing and Capital Markets Access
After securing a $525 million credit facility from Blockchain.com in 2021, GRIID initially intended to list on the New York Stock Exchange. However, this plan did not materialize. Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF (BLOK), believes that capital markets access is crucial for growth, especially with the upcoming halving. BLOK invests in various bitcoin miners, including Marathon Digital, Riot Platforms, Cleanspark, and others.
Bitdeer’s stock price has experienced a 7% decline in 2024, aligning with the broader trend in the mining sector. Marathon Digital and Riot Platforms, two larger competitors, have seen their stock prices drop by approximately 19% and 25% respectively year-to-date. Hut 8, which merged with US Bitcoin Corp. in November, has endured a 31% decline in its stock price so far this year. Rivals Cleanspark and Bitfarms have experienced dips of roughly 20% and 12% respectively.
According to analysts at Compass Point Research, the decline in hash price from $0.12 to about $0.09 earlier this month contributed to the sell-off in mining stocks. They anticipate continued volatility and potential weakness leading up to the mid-April halving, which they believe will provide favorable buying opportunities. Bitcoin (BTC) itself has seen a 3.5% decline year-to-date, following an initial surge after the introduction of spot bitcoin ETFs on January 11.