- Bernstein recommends buying mining stocks to gain exposure to Bitcoin.
- Riot and Clean Spark are the company's top picks.
- Positive ETF flows will provide further tailwinds for Bitcoin.
Bitcoin (BTC) mining company stocks appear to have bottomed out after the U.S. approved a Bitcoin spot exchange-traded fund (ETF) in January, and investment firm Bernstein , said in a February 8 research note that it recommends buying stocks in this sector ahead of the next Bitcoin halving.
Bitcoin, the world's largest crypto asset, is performing well ahead of its halving, which will cut rewards for miners' efforts by 50%, and will likely maintain its momentum for the rest of the year, Bernstein says. states. The halving is expected to take place in April, but Bitcoin price has broken out after each of the previous three events, and this time it is already strong in front of the catalyst. Bitcoin rose to a one-month high of $46,000 in European time on the 9th.
Bernstein recommends gaining exposure to Bitcoin through mining stocks, and says Riot Platforms and CleanSpark are top stocks in the sector with outperform ratings. .
Analysts Gautam Chhugani and Mahika Sapra said: “The momentum in ETF inflows, solid BTC price movement, and a healthy trend towards adding capacity ahead of the halving. “Given the large number of miners, we feel comfortable recommending investors to invest in the stocks we recommend.” “A Bitcoin ETF-led scenario is driving demand, and as Bitcoin is a recursive asset, we expect higher prices to increase ETF inflows, leading to a new all-time high in 2024. There is.”
Typically, a halving is a “risk-off” event for the sector, the report said. Bernstein expects 15% of Bitcoin's hashrate to stop after the halving, but the decline could be smaller if the price holds firm. “If Bitcoin prices are above $44,500, most US listed miners appear to be in a relatively good position, even if their costs double after the halving,” he said.
ETF flows have also turned positive, providing further tailwinds for the world's largest crypto asset. “Consistent net ETF inflows should imply a bullish overall market trend, ensuring a feedback loop of higher prices to higher inflows,” the report said.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: CleanSpark's Bitcoin mining facility in College Park, Georgia. (Eliza Gkritsi/CoinDesk)
｜Original text: Bitcoin Miner Shares Offer Good Entry Point Ahead of Halving Event: Bernstein