Bitcoin Miners’ Margins Are Still ‘Quite Healthy’ Even After Recent Sell-Off: D.A. Davidson

The Wall Street investment bank says mining company shares were sold because of falling bitcoin prices and investors' sudden change in risk appetite.

AccessTimeIconJan 18, 2022 at 6:39 p.m. UTC
Updated May 11, 2023 at 5:54 p.m. UTC

Bitcoin miners are still generating healthy profits, despite the sharp sell-off in crypto prices and an increase in the network hashrate, Wall Street investment firm D.A. Davidson’s analyst wrote on Tuesday.

  • “Since the late-October peak, hash price ($/TH/day) has fallen from over $0.40 to just $0.22 today yet gross margins remain quite healthy, around 85% down from 91% at peak,” analyst Christopher Brendler wrote.
  • He also noted the gross margin numbers are based on the specification of “industry-standard” S19 Pro mining machines. When a more efficient miner, the S19 XP, comes online, the margins would go to over 90% at today’s hash price.
  • Brendler noted that the sell-off in the mining stocks has been because of a combination of bitcoin prices falling and investors' sudden change in risk appetite.
  • However, Brendler is still bullish on the miners as he believes their valuations have overcorrected while their fundamentals remain “excellent.” He thinks the weakness in bitcoin price should force inefficient miners out of the market.
  • On Jan. 10, Jefferies said the slump in bitcoin’s price from November’s all-time high is hurting the shares of the crypto mining companies, but might nevertheless be positive for them because it will deter new entrants to the space.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about