CleanSpark CEO Zach Bradford, a prominent research and brokerage firm, shared his bullish outlook on Bitcoin’s future in a recent interview with analysts at Bernstein, according to The Block. Bradford’s prediction of Bitcoin reaching nearly $200,000 within the next 18 months has sent waves through the cryptocurrency community, potentially signaling a new era of growth for the world’s leading digital asset.
Bradford’s optimistic forecast comes at a time when the crypto market is showing signs of recovery after a prolonged bear market. His analysis suggests that Bitcoin could experience a rapid ascent, followed by an extended period of stability at higher levels before the next bearish cycle begins.
“Based on my current analysis, I believe we could see bitcoin peak just under $200,000, sometime in the next 18 months. That’ll likely be a peak. But I do think we’ll see a rapid jump, and then hopefully, an extended elongated period of it being up before we revisit a bear cycle,” Bradford told Bernstein’s Gautam Chhugani.
The CEO’s confidence in Bitcoin’s potential surge is rooted in several factors, including historical patterns and upcoming events that could significantly impact the cryptocurrency market.
Bitcoin’s Growth Linked to Halving and Election
Bradford highlighted the importance of Bitcoin’s halving events, which occur approximately every four years and have historically been followed by substantial price increases. The next halving is expected to take place in April 2024, potentially setting the stage for the predicted bull run.
Additionally, the CleanSpark CEO pointed to the November 2024 U.S. presidential election as another critical factor that could influence Bitcoin’s price trajectory. However, Bradford emphasized that the impact would likely stem from the reduction in uncertainty following the election rather than the specific outcome.
“I think we’ll start seeing a meaningful push in bitcoin prices post-election through January, which should result in significant margin expansion for well-placed miners with efficient cost structures,” Bradford explained.
The CEO also expressed his belief that the Federal Reserve might adopt a more aggressive approach to interest rate cuts in the coming 15 to 16 months, which could create a favorable environment for Bitcoin’s growth.
CleanSpark’s Strategy and Market Position
As the leader of a prominent Bitcoin mining company, Bradford provided insights into CleanSpark’s operational strategy and market positioning. The company has demonstrated a keen ability to time the market, selling Bitcoin near price peaks and accumulating during downturns.
Since June 2023, CleanSpark has retained 97% of its mined Bitcoin, with its holdings approaching 8,000 BTC valued at approximately $509 million as of the interview date. The company intends to leverage these holdings to fund non-dilutive growth during future bull markets.
Bradford also highlighted CleanSpark’s unique approach to scaling its operations: “Our strength has been in acquiring smaller 25MW to 75MW sites at less than $500,000 per MW — much cheaper than our peers. We’ve been able to scale up to 1GW power contracts across five U.S. states this way, something I believe is being undervalued by the market.”
Pure-Play Bitcoin Miners Offer Faster Paybacks
The CleanSpark CEO shared his perspective on the rapid evolution of Bitcoin mining equipment, predicting that new generation chips could reach an efficiency of 11J/TH. This advancement is expected to necessitate a shift from air cooling to immersion cooling in mining facilities.
Bradford explained, “Once mining fleets get to 15J/TH, the upside from upgrading to new chips is limited.” He also noted increased competition in the mining equipment manufacturing sector, with companies like Bitdeer and Jack Dorsey’s Block challenging the dominance of industry leader Bitmain.
While some Bitcoin mining companies have diversified into AI-related operations, Bradford defended the value of pure-play Bitcoin miners. He argued that Bitcoin-focused operators are currently underrated, citing faster payback periods for mining infrastructure compared to AI data centers.
“Time to energization and cashflows” for Bitcoin mining operations can be measured in weeks rather than years, as is often the case with AI projects. This rapid turnaround time allows pure-play miners to capitalize on market opportunities more quickly.
