Crypto miners that are slated to go public soon are likely to face a tough few months following the recent drop-off in bitcoin's price and the broader crypto market.

The slump in crypto prices could affect companies such as Core Scientific, which is planning to become a public company through a merger with special purpose acquisition company (SPAC) Power & Digital Infrastructure Acquisition Corp., and bitcoin miner Rhodium Enterprises, which is planning an almost $2 billion dollar IPO.

Bitcoin prices have fallen more than 30% since reaching an all-time high in November, and investors and the number of miners going public have subsequently slowed.

“There are a number of SPACs and IPOs that will look to close in the first half of 2022, such as Core Scientific, PrimeBlock, Rhodium and Griid,” Luxor Mining’s co-founder and Chief Operating Officer Ethan Vera said. These companies looking to go public not only face a correction in crypto prices but also an increasingly crowded market, he added.

Stronghold Digital fell more than 50% since its trading debut in October on the Nasdaq; meanwhile, another miner, Iris Energy, also declined more than 50% since going public in November.

Gwyneth Paltrow-backed bitcoin miner TeraWulf, which was a SPAC play, fell in its trading debut in December, and the shares have traded sideways since then, according to TradingView data.

With bitcoin's price falling more than 30% since reaching its all-time high in November, and competition expected to rise as the network's hashrate increases this year, investors will be eyeing miners’ valuations and their growth strategies. Companies that can distinguish themselves in the increasingly competitive sector will be the ultimate winners.

“In order for these [new] companies to retain their proposed valuation when trading, they will need to find ways to differentiate their businesses from the existing operators,” Vera said. He also noted that production numbers from these companies for January and February will be a strong indicator where these companies will likely start trading when they go public.

However, for investors to really pay up for a company, they will need to see more longer-term strategy from the companies, said Eric F. Risley, managing partner of crypto mergers and acquisitions firm Architect Partners. Risley added that crypto miners that can operate most efficiently are most likely to thrive amid crypto markets’ fluctuations.

“We believe the mining haves and have nots (efficiency of operations) will reveal themselves in the next 24 months, and the haves will enjoy stronger valuations and strategic flexibility and growth options,” he said.

Read more: Bitcoin Miners Are Starting to ‘Hodl’ Again, but for How Long?