Buy Bitcoin Miners Ahead of the Halving, Bernstein Says
Summary
The "miner fear factor" is at its peak due to the upcoming bitcoin halving, which is expected to decrease mining rewards by 50%. Despite this, Bernstein recommends buying Riot Platforms (RIOT) and CleanSpark (CLSK) due to their superior execution and market leadership in self-mining hashrate. Mining stocks have underperformed bitcoin year-to-date due to concerns over profitability post-halving. Historically, bitcoin prices have increased after halving events, and Bernstein expects this trend to continue once mining hashrates adjust to lower rewards and ETF inflows resume. The firm also predicts that the continued rollout of spot bitcoin ETFs will sustain demand for bitcoin, and expects bitcoin to reach a cycle high of $150K by 2025.
