Ahead of the Bitcoin Halving, Are Bitcoin Mining Stocks a Buy?
In 2023, Bitcoin (CRYPTO: BTC) mining stocks were some of the best investments that you could make. Fueled by a skyrocketing price for the cryptocurrency, the largest miners -- such as Riot Platforms (NASDAQ: RIOT) and Marathon Digital Holdings (NASDAQ: MARA) -- recorded triple-digit percentage gains. The higher Bitcoin's price went, the more money these miners made, and the more attractive they became as investments.
So, with the crypto rallying yet again this year, are Bitcoin mining stocks still a buy? To answer that question, it's important to take into account two huge catalysts that did not exist last year: the launch of the new spot Bitcoin exchange-traded funds (ETFs), and the Bitcoin halving event in April. Let's look at both.
In the first two months of 2024, the launch of the new spot Bitcoin ETFs added fuel to the Bitcoin rally, making every company in the crypto's ecosystem more attractive. If the price of the digital coin is booming, then it makes sense to load up on companies that are highly leveraged to that price.
Source Fool.com
