Crypto stocks have been among the most disappointing investments over the past few months. In previous crypto bull market rallies, companies mining cryptocurrencies were some of the best-performing investments, easily delivering multi-bagger returns and continuing to cruise higher alongside Bitcoin (BTC-USD). In many cases, these mining stocks even outperformed Bitcoin. However, many of these same mining stocks are now trading flat or even significantly lower as Bitcoin reaches new highs. Why is that?

I believe the current bull run is a bit different than previous ones. Bitcoin has gone parabolic well before the upcoming halving event, which hasn’t happened before. Previous bull runs occurred many months after the halving, allowing mining companies time to prove they could handle operations with fewer rewards. However, Wall Street seems to be waiting for the halving this time around, concerned that mining companies won’t benefit as much from Bitcoin’s price surge due to halved mining rewards.

I disagree with this view, since most Bitcoin mining companies have been aggressively expanding their mining fleets. I believe these crypto mining stocks could still soar after the halving and deliver multi-bagger returns. The reduction of supply should drive Bitcoin prices much higher, ballooning mining company balance sheets that are filled with Bitcoin.

Let’s take a closer look at a few of these crypto stocks primed for a breakout!

Bitfarms (BITF)

Bitfarms (NASDAQ:BITF) is a Canadian Bitcoin miner that has been performing quite well compared to most other crypto mining companies. The company’s cost of production sits at just $16,200 to mine each Bitcoin, and Bitfarms impressively holds 806 BTC right now, mining 9.2 new Bitcoin per day per day. It is a good time for the company to start selling Bitcoin in the current bull run and finally deliver profits. However, much of these profits are being used to aggressively acquire mining hardware for post-halving operations.

Last month, Bitfarms announced plans to significantly increase its Bitcoin mining capacity. The company exercised an option to purchase 28,000 Bitmain T21 miners. Additionally, Bitfarms acquired 19,280 Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 Hydro miners. With these hardware purchases, Bitfarms stated its goal is to reach a hashrate of 21 exahashes per second (EH/s) in 2024. The new miners are scheduled for delivery throughout 2024. To help offset costs, Bitfarms indicated it intends to liquidate its older mining rigs.

In addition, Bitfarms provided a March 2024 operational update showing it earned 286 Bitcoins from its mining operations as it pushes forward with an ambitious upgrade plan. The company exercised options to purchase over 51,000 new Bitmain miners, including the latest T21 and S21 models, with the goal of tripling its hashrate to 21 EH/s by year-end while improving energy efficiency to 21 watts/terahash. Bitfarms ended March with 6.5 EH/s online after receiving the first 1,650 T21 miners. While hashrate was down slightly from February due to curtailment programs, the company is positioning itself well to capitalize on rising Bitcoin prices by rapidly expanding its next-generation mining capacity.

Marathon Digital (MARA)

Marathon Digital (NASDAQ:MARA) is one of the bigger crypto mining companies. It has also performed very well compared to most other mining companies, and I’m confident Marathon Digital can deliver even more growth going forward if the bull run continues. I believe there are solid catalysts ahead, assuming interest rates come down and the halving goes live as expected.

Marathon Digital recently unveiled two major new product lines showcasing its vertically integrated technology stack – the MARAFW firmware and MARA UCB 2100 control board designed to optimize Bitcoin mining rigs, which Marathon is now offering to outside miners after successful internal deployment; and the MARA 2PIC700 two-phase immersion cooling system that enables 2-4x higher power density for data centers, including potential 60%-100% overclocking of Bitcoin mining ASICs.

I believe these catalysts, combined with the aggressive acquisition of mining rigs in earlier months, will let Marathon Digital shrug off the halving’s impact. The company seems to be firing on all cylinders operationally while expanding mining capacity at the right time.

Bit Digital (BTBT)

Bit Digital (NASDAQ:BTBT) is a smaller Bitcoin miner, and this company doesn’t have the prettiest chart. It is one of the crypto stocks that has a relatively flat chart, despite the broader market continuing to climb. However, improvements are being made and I believe this company is well-positioned for the next leg higher after the upcoming Bitcoin halving.

The company’s 45,000-plus miners produce a hash rate of 3.9 EH/s at maximum capacity, with 6,471 Bitcoins earned to date. Bit Digital announced it received a proposal from an existing customer to significantly expand its existing agreement for Bit Digital’s AI business. This proposal calls for an additional 2,048 GPUs, bringing the total to 4,096 GPUs under the amended agreement. Bit Digital intends to accept the customer proposal, but some uncertainly remains in this regard.

This expansion would be a major upside catalyst, helping Bit Digital achieve its goal of reaching a $100 million annualized revenue run-rate for its Bit Digital AI business line. This aggressive mining expansion should allow the company to weather the halving’s impact, and makes it a top pick in this sector in my view.

On the date of publication, Omor Ibne Ehsan 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.