Bitcoin Miner stock offers a good entry point ahead of the halving event: Bernstein

  • Bernstein recommends buying mining stocks to gain exposure to bitcoin.

  • Riot Platforms and CleanSpark are the broker’s top choices.

  • Positive ETF flows provide additional tailwinds for bitcoin.

Bitcoin {{BTC}} mining companies appear to have bottomed out after the approval of spot bitcoin exchange-traded funds (ETFs) in the US last month, and broker Bernstein is recommending buying his preferred shares in the sector ahead of the next reward halving, a research report said on Thursday.

The world’s largest cryptocurrency easily outperforms the halve, in which the reward that miners earn is for their efforts reduced by 50%, and will likely maintain momentum for the rest of the year, Bernstein said. The cutbacks are expected to take place in April. The Bitcoin price broke out after each of the three previous events, and this time the catalyst is already strong, the report said. Bitcoin rose to $46,000, a one-month high, early Friday in Europe.

Bernstein recommends gaining exposure to bitcoin through mining stocks, and the better-performing Riot Platforms (RIOT) and CleanSpark (CLSK) are the broker’s top picks in the sector.

“Given the positive momentum of ETF flows, resilient BTC price action and healthy miners adding capacity to the halving, we feel comfortable recommending investors enter here for our preferred names,” wrote analysts Gautam Chhugani and Mahika Sapra. “The institutional narrative led by bitcoin ETFs is driving demand, and because bitcoin is the reflexive asset, we expect higher price to drive higher ETF inflows, leading to new highs in 2024.”

Normally, halving is a risky exit for the sector, because the market “expensive miners, who operate on…

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