As the cryptocurrency market anticipates the upcoming Bitcoin halving event in April 2024, investors are eyeing potential stocks poised to benefit from the resultant market dynamics. Historically, Bitcoin halving events have triggered significant price rallies by reducing the reward for mining new blocks, effectively decreasing the supply of new Bitcoins entering the market. This anticipated supply shock is expected to propel Bitcoin prices and, by extension, the value of crypto-centric stocks. Here are four solid crypto stocks to consider ahead of the next Bitcoin rally.
- Marathon Digital Holdings (MARA)
Marathon Digital Holdings, a leading Bitcoin mining company, is a strong contender for investors looking to capitalize on the next Bitcoin rally. The company is expanding its operations to increase its hash rate to 21 EH/s by the end of 2024, positioning itself to mine Bitcoin efficiently even after the halving reduces block rewards. Marathon’s adoption of advanced technologies, such as their proprietary firmware and control board, alongside an immersion cooling system, enhances their operational efficiency and profitability.
Additionally, Marathon’s strategic expansion includes the deployment of new mining rigs and innovative cooling systems, which will allow the company to maintain high levels of productivity and profitability in a competitive market. This proactive approach makes Marathon Digital a compelling investment choice as the halving event approaches.
- Coinbase Global (COIN)
Coinbase, one of the largest cryptocurrency exchanges in the United States, is another strong candidate for investment. The company benefits directly from increased trading volumes, which are expected to rise significantly as the Bitcoin halving event draws near. The recent approval of spot Bitcoin ETFs has also provided a substantial boost to Coinbase, attracting more institutional investors to its platform.
Coinbase’s diversified revenue streams, including trading fees and custody services, position it well to capitalize on the expected surge in crypto market activity. Furthermore, Coinbase’s recent launch of a layer-2 scaling solution, BASE, has already led to significant growth in transaction volumes and revenues.
- MicroStrategy (MSTR)
MicroStrategy, a business intelligence firm led by Bitcoin enthusiast Michael Saylor, is renowned for its substantial Bitcoin holdings. The company has accumulated over 214,250 Bitcoins, making it one of the largest corporate holders of the cryptocurrency. MicroStrategy’s strategy to raise additional capital to buy more Bitcoin demonstrates its commitment to this investment approach.
While the firm’s core software business remains relatively stagnant, its Bitcoin holdings have yielded tremendous returns, closely aligning the company’s stock performance with Bitcoin’s price movements. As Bitcoin prices are expected to surge post-halving, MicroStrategy’s stock is likely to benefit significantly, making it a worthy addition to any crypto-focused portfolio.
- Block (SQ)
Formerly known as Square, Block is a financial services and digital payments company that has integrated Bitcoin into its business model. Under the leadership of CEO Jack Dorsey, Block has made substantial investments in Bitcoin, holding over 8,038 Bitcoins. The company’s Cash App platform allows users to buy, sell, and hold Bitcoin, contributing to significant revenue growth from Bitcoin transactions.
Block’s focus on expanding its crypto-related services and its strategic Bitcoin holdings position the company to benefit from the anticipated Bitcoin rally. The company’s recent quarterly profit, largely driven by gains in its Bitcoin holdings, highlights the potential for further growth as market conditions improve.
As the 2024 Bitcoin halving event approaches, these four crypto stocks—Marathon Digital Holdings, Coinbase Global, MicroStrategy, and Block—present promising investment opportunities. Each company is strategically positioned to benefit from the anticipated increase in Bitcoin prices and trading activity. Investors looking to capitalize on the next Bitcoin rally should consider adding these stocks to their portfolios to potentially maximize their returns.
