The halving of Bitcoin (BTC-USD) has typically been a precursor to some pretty extraordinary gains for the top cryptocurrency. Many investors and cryptocurrency traders have likely prepared. They have piled on ahead of the fourth halving event with the expectation that history will repeat itself.
Following Friday’s halving, many new Bitcoin holders are sure to wonder when (and if) the big surge will happen. Some pundits are skeptical. They believe more big gains will be ahead post halving. Some are going as far to say the halving has already been baked in.
Only time will tell. In any case, the Bitcoin halving has to be comforting to many investors weary of inflation’s impact on the dollar.
Are you hopeful that Bitcoin can pull off yet another halving-induced rally? If so, the following crypto stocks are worthy of consideration for the next year and a half.
Riot Platforms (RIOT)
Many small Bitcoin miners aren’t looking forward to getting half of what they normally would moving forward. Riot Platforms (NASDAQ:RIOT), one of the largest Bitcoin miners, actually stands to gain in the post-halving environment.
The company is positioned to do well and even better over time, following the latest halving. It may improve its hash rate while targeting a greater chunk of rewards that aren’t as economical for smaller miners. Also, Riot stands to gain as it continues acquiring smaller miners for better prices. The more pressure small miners feel, the greater the chances that larger miners will score a great deal from M&A activity.
Additionally, the halving event may pave the way for a nice rally in Bitcoin’s price for the year ahead. Riot stock may be well-equipped to march higher from its depressed trough. At writing, shares trade for just $11 and change, close to 52-week lows.
Coinbase (COIN)
If the Bitcoin miners don’t suit you, perhaps an exchange platform play like Coinbase (NASDAQ:COIN) is a better pick. Even as miner rewards get cut in half, Coinbase still stands to benefit. Interest in Bitcoin and other cryptocurrencies kicks things up a notch.
Indeed, it’s easy to imagine many speculators seeking quick post-halving gains will lean into Bitcoin on Coinbase. As trading volumes surge, so too will Coinbase’s sales.
It’s hard to tell how much of the event is baked in and whether the latest halving will kick off a frenzy. The stock has been ridiculously hot before it peaked in March 2024. With momentum reversing and a potential head-and-shoulders top pattern forming, I’m a tad more hesitant about buying COIN stock at $226 per share. Perhaps COIN stock is more of a wait-and-see for now.
Block (SQ)
Block (NYSE:SQ) is a fintech company that could benefit as interest in Bitcoin rises. It offers increased Bitcoin trading activity through its wildly popular Cash App platform. Also interest increases in Jack Dorsey’s Bitcoin-related (like TBD and Spiral) projects. So, SQ seems to be a rather intriguing way to play a run in the price of Bitcoin post-halving.
The stock is down around 18% from its 52-week high. This is partly due to weakness in the tech industry and a downgrade from Morgan Stanley.
Undoubtedly, quarterly earnings are just ahead on May 2. This event could be a make or break for Block near term. If earnings disappoint slightly, investors may have a shot to buy at a lower price to play a gradual uptick in bullishness for Bitcoin.
On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
