Key points
- Bitcoin enthusiasts await the April 19 halving event, renowned for its impact on cryptocurrency markets.
- Ahead of the halving, the cryptocurrency market has seen a significant pullback, with the price of Bitcoin falling 10% in five days and 3.5% in the past month.
- The year-to-date performance of five major Bitcoin stocks: iShares Bitcoin TrustMicroStrategy, Riot Platforms, Marathon Digital and CleanSpark – it was mixed.
Bitcoin enthusiasts are eagerly awaiting the upcoming halving event, scheduled for April 19, as it marks a pivotal moment in the cryptocurrency ecosystem. Since its inception, this event, rooted in the Bitcoin protocol, has historically triggered significant market movements. Past halvings in 2012, 2016, and 2020 were accompanied by significant price fluctuations, shaping Bitcoin’s trajectory.
As anticipation grows for the imminent halving, the cryptocurrency market is experiencing a notable decline. Over the last five days, the price of Bitcoin has fallen by more than 10%, and in the last month it has fallen by almost 3.5%, particularly due to risk-averse circumstances related to the increase in tensions in the Middle Orient. However, despite this short-term decline, Bitcoin maintains a year-to-date performance up more than 42%.
The halving is intended to decrease mining rewards from 6.25 to 3.125 Bitcoins per block, adhering to the predetermined algorithm outlined in Satoshi Nakamoto’s 2008 white paper. With the Bitcoin mining rate running consistently, these halving events will occur approximately every four years, fostering an environment of scarcity and upward pressure on prices. As the countdown to the April halving intensifies, attention shifts to assessing the performance of major Bitcoin-related stocks amid this backdrop of anticipation and volatility.
5 Bitcoin-Related Stocks Ahead of Halving
1. iShares Bitcoin Trust
iShares Bitcoin Trust NASDAQ: GO is probably the most popular Bitcoin spot ETF. The ETF is provided by Blackrock, the world’s largest ETF provider, and offers investors access to Bitcoin through a traditional brokerage account. After a brief post-listing decline, the ETF, along with its underlying, rose to record highs and broke several ETF records, especially in terms of traded volume. Due to the risk-off environment and geopolitical landscape, the ETF has fallen more than 12% over the past five days and nearly 11% over the month. Like Bitcoin, however, the ETF remains up close to 42% on the year.
2.MicroStrategy Inc.
MicroStrategy Inc. NASDAQ:MSTR, a business software maker whose overall strategy also includes buying large amounts of Bitcoin, held just over 214,000 Bitcoin as of March 18. The company has a market capitalization of over $21 billion and a P/E ratio of 44.53. Its shares have been particularly volatile in recent years, with a 52-week high of nearly $2,000 and a low of $266. More recently, the stock is down nearly 30% over the past month.
3.Riot Platforms Inc.
Riot control platforms NASDAQ: REVOLT is a Bitcoin mining company based in the United States. Although the company is linked to Bitcoin, its shares have lagged far behind the digital asset, losing nearly 50% year to date. Many industry experts have expressed concern about Bitcoin mining companies ahead of the halving event, as the reward for Bitcoin produced is set to decrease. Despite bearish sentiment and severe underperformance, analysts remain bullish on the stock. RIOT has a buy rating based on nine analyst ratings and an impressive consensus price target of over 130% upside.
4. Marathon Digital Holdings Inc.
Digital marathon entries NASDAQ: MARA, based in Las Vegas, focuses its efforts on Bitcoin mining operations. Despite its direct association with Bitcoin, the company’s shares have encountered significant challenges in the market, witnessing a notable decline year-to-date, down more than 37%. This decline reflects the broader volatility experienced in the cryptocurrency sector. Notably, MARA maintains a healthy short interest of 16%, suggesting mixed sentiments among investors regarding its future trajectory. Analysts maintain a cautious outlook on Marathon Digital Holdings, with a consensus Hold rating.
5. CleanSpark Inc.
CleanSpark NASDAQ: CLSK is another Bitcoin mining company focused on the Americas. Like many of the names mentioned above, CLSK has an above-average short interest of 13% and has fallen considerably from its 52-week high, now down more than 41%. Despite the dramatic decline, the stock remained up more than 20% for the year; however, it is trading below the critical $15 support area.
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