Keep an eye on Bitcoin mining stocks, especially with the halving on April 20th. Granted, the halving event will cut the stock in half Bitcoin (BTC USD) Miners can earn by validating transactions. However, as we saw before and after the halving events in 2012, 2016, and 2020, not only did Bitcoin’s price rise, but in most cases, so did miners.
Even better, according to Bernstein analysts, CEOs are optimistic about the halving in 2024. The “CEOs point out that miner revenues are at an all-time high in US dollar terms and provide a solid cushion for miners ahead of the halving.” They also pointed out the “relatively low leverage on the balance sheet.” According to the CEOs, there is even talk of a possible consolidation of miners.
Additionally, “historically high revenues will provide a ‘solid buffer for miners ahead of the halving’.” said Bernstein. “Part of this revenue is due to Bitcoin’s network fees. Bitcoin transaction fees have increased over the past year due to the development of new Bitcoin Layer 2 platforms and NFT trading. This revenue stream will not be affected by the halving. Fees now account for 10% of Bitcoin mining rewards, having risen to 40% in the past.”
However, investors may want to jump into Bitcoin mining stocks – especially during weakness.
Marathon Digital (MARA)
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In recent days, shares have risen Marathon Digital (NASDAQ:MARA) fell from about $25 to $14.60. All thanks to Bitcoin’s retreat from Middle East tensions.
But you might want to use this weakness as an opportunity.
First, if tensions hopefully ease, Bitcoin will bounce back and should take mining stocks like MARA with it. Historically, MARA has performed well before and after the Bitcoin halving events. For example, look at the halving event on May 11, 2020. At this point, MARA had bottomed at around $0.52. At the start of the event, MARA reached a value of $0.72. From there it would reach $44.35.
Before the 2016 halving event on July 9th, MARA was trading at $30.77 in advance. At the start of the halving, the value was as high as $45. After that, it would reach $48.48 per share. With the 2012 event on November 12, MARA was trading at around $104 and fell to a low of around $38.48. However, by the end of 2014, it would rise again to a high of $116.
Riot Platforms (RIOT)
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Riot Platforms (NASDAQ:REVOLT) hasn’t fared much better with Bitcoin’s decline.
Over the past few weeks, RIOT has fallen from around $18 to $8.06, becoming a falling knife.
However, don’t write this off either. Once tensions in the Middle East subside, hopefully soon, RIOT should come back strong. Secondly, similar to MARA, it also has a strong track record with halving events. Before the halving in 2020, RIOT just bottomed out at around $0.95. By the halving it was up to $1.70. It would then be $52.73.
Before the halving in 2016, it was over $3. By December it was up to $3.79. By the end of 2017 it was up to $33.27. At the halving in 2012, RIOT was trading at around $19. Shortly after the halving, it slipped to $14.55 before recovering to around $20 in December.
Hat 8 Mining (HUT)
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Another one of the best Bitcoin mining stocks to buy is Hut 8 Mining (NASDAQ:HUT).
Although Hut 8 was unable to participate in the 2012 or 2016 halving events after going public on March 8, 2018, as we saw in the 2020 halving, Hut 8 bottomed just before the May 5 IPO reached around 2.94 US dollars. It would reach $7 on May 8th. On the day of the halving on May 11, it was trading at $5.55. From there it would rise to $7.75.
Nowadays, Hut 8 is struggling with the Bitcoin decline. However, it appears that the lowest point has already been reached since March. It is also overextended on RSI, MACD and Williams’ %R. The last trading price was $7.24, I would like to see it retest $12 first.
Not long ago, analysts at Craig-Hallum raised the price target on Hut 8 from $10 to $12 and set the stock to Hold. The company says HUT’s new management team is ready to make “the right decisions at the right time.” according to TheFly.com.
At the time of publication, Ian Cooper held (neither directly nor indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.