The completion of Bitcoin’s fourth halving event on Friday evening marked a significant milestone for the cryptocurrency network, reducing the rewards for miners from 6.25 to 3.125 bitcoins. This adjustment is expected to have several implications for the mining industry and hash rates.

Analysts at Compass Point Research have noted that the initial effects of the halving have been more positive than anticipated. Hash prices have reached around $0.08, which is beneficial for miners with an all-in hash cost of approximately $0.04 post-machine refresh. This allows them to achieve nearly 50% EBITDA margins, signaling a favorable environment for miners.

Despite some fluctuations observed in block-level data, Compass Point remains optimistic about the mining sector. They attribute their positive outlook to increased Bitcoin transaction fees driven by new features introduced on the network. These developments are seen as bullish indicators for mining stocks.

Compass Point analysts suggest that miners trading at low valuations and with the ability to double their hash rate this year at improved efficiency levels present promising investment opportunities. They specifically highlight companies like Riot Platforms (NASDAQ:RIOT), Iris Energy, and Bitfarms as having favorable outlooks.

Moreover, the firm identifies miners such as Core Scientific and TeraWulf, which have made higher infrastructure investments and have strong free cash flow positions, as being well-positioned for future growth in the mining sector.

Looking ahead, Compass Point expects hash prices to stabilize above a certain range post-halving, which could further benefit the sector. They anticipate a recovery in hash rates this year as newer and more efficient mining machines are deployed, counterbalancing the decrease caused by the removal of older rigs.