Yahoo Finance 3 Bitcoin Mining Stocks to Watch After the April Halving
With the scheduled April Bitcoin (BTC) halving behind us, it is widely anticipated that the supply crunch resulting from the reduced gamut of Bitcoins will lead to a price appreciation for the digital asset in the coming months.
It is of paramount importance to understand what Bitcoin halving translates into. Since Bitcoin “miners” validate and record the transactions, they receive both a block reward from the Bitcoin network and transaction fees from the retail consumer making the transaction. Bitcoin halving reduces the former by half, with a target to restrict the entire global circulation of Bitcoins at 21 million. Thus, demand for new Bitcoins rises, thereby pulling the price up.
However, analysts are also of the view that because of its non-sudden and planned nature (a halving event happens every four years), it is priced in and is not a disruption. Miners resort to selling to improve their cashflows and sending large amounts of BTC to exchanges as part of the de-risking strategy.
While the Bitcoin market is currently overbought and the price of the benchmark crypto is holding steady at the current juncture, over the next few months, it may shoot up. ViaBTC, a mining pool that mined the first block after the halving event on Apr 20, has sold the "epic" satoshi it contained for $2.13 million. This comes on the back of expectations that after the halving event, the first sat produced by the Bitcoin network would attract considerable interest.
This may just be the auspicious start that sparks a sustained rally for the digital coin. The price of Bitcoin is currently hovering around the $64,000 mark. Some say it may go up to $150,000 before the year ends. In such an environment, it would be prudent to watch a few prominent Bitcoin mining stocks with an eye on the future.
Riot Platforms, Inc. RIOT: This Bitcoin mining company from North America also provides data center housing and engineering services.
RIOT’s expected earnings growth rate for the next year is 164.1%. The Zacks Consensus Estimate for its current-year earnings has improved 56.1% over the past 60 days. RIOT currently carries a Zacks Rank #2 (Buy).
Stronghold Digital Mining, Inc. SDIG: This is a crypto asset mining company that focuses on mining Bitcoin in the United States.
SDIG’s expected earnings growth rate for the current year is 34.3%. The Zacks Consensus Estimate for its current-year earnings has improved 31.4% over the past 60 days. SDIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CleanSpark, Inc. CLSK: This cryptocurrency mining company from the Americas primarily operates data centers that run on low-carbon power. It engages in the mining and sale of digital currencies.
CLSK’s expected earnings growth rate for the current year is 89.2%. The Zacks Consensus Estimate for its current-year earnings has improved 41.7% over the past 60 days. CLSK currently carries a Zacks Rank #2.
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