Bitcoin Price Projections by CleanSpark CEO

In an interview with analysts at research and brokerage firm Bernstein, CleanSpark CEO Zach Bradford expressed optimism for Bitcoin’s future. He predicts that Bitcoin could peak at nearly $200,000 during this cycle, potentially within the next 18 months.

“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 shared with Bernstein’s Gautam Chhugani.

Bradford pointed out that Bitcoin’s prolonged period of flat performance might indicate that a sustained upward trend could endure longer. He noted, however, that this outlook is subject to macroeconomic factors.

Historically, post-halving periods have been favorable for Bitcoin prices, driven by capital movements and election cycles. Bradford anticipates a significant price push post-election, expected through January, benefiting miners with efficient operating structures.

Bradford also suggested that the upcoming U.S. presidential election would impact Bitcoin’s valuation, emphasizing that the resolution of the election would diminish uncertainty, rather than a specific candidate’s victory. He claimed that the Federal Reserve’s delayed rate cuts might influence Bitcoin positively in the upcoming months.

Bitcoin vs. AI Diversification

In the discussion around mining stocks, Bradford noted the outperformance of AI-diversified firms like Core Scientific and Terawulf compared to pure Bitcoin miners. He argued that Bitcoin-focused mining companies are currently undervalued despite their quicker capital payback.

“Pure-play Bitcoin miners have lower capital expenditure costs and faster energization compared to a much longer gestation period for AI data centers,” he elaborated, advocating for the mining sector’s charge.

Despite Bitcoin’s volatility, Bradford emphasized the importance of market timing, highlighting CleanSpark’s strategy of selling at peaks and accumulating Bitcoin in downturns. The company currently holds around 8,000 BTC, worth approximately $509 million, aiming to sell these in future bull markets for growth funding.

Additionally, CleanSpark has gained an advantage by acquiring smaller mining sites efficiently, allowing them to scale up power contracts significantly across the U.S.

With ongoing advancements in Bitcoin mining technology, Bradford looked forward to the emergence of new generation chips achieving 11J/TH efficiency, which may necessitate a shift to immersion cooling methods. This transition could also reduce noise pollution, facilitating site approvals from local authorities.

Increasing competition among mining equipment manufacturers may also lower mining costs, with Bernstein rating CleanSpark as outperform with a $30 price target, while its stock closed at $10.13 on a recent Friday.