Has anyone looked into how these companies did during past halvings? I'm checking out the mining sector and thinking about these three stocks:
- MARA
- BITF
- RIOT
What do you think will happen with these after the halving? I’ve heard BITF is super efficient. MARA has the second largest stash of crypto, so I guess they’ll have the cash to reinvest in their operations. They hold 13,396 BTC compared to BITF’s 385. RIOT has 6,974 BTC. But I know there’s more to a mining business than just holding BTC. BITF apparently has some impressive tech too.
I’m curious to hear from anyone who’s actually invested or thinking about it. Some of these stocks are already up 100 to 200% this year. How much higher can they realistically go before it seems crazy to jump in?
Which mining stocks are worth it?
6 replies 463 views
Why invest in a company that will find it more difficult to make a profit every 4 years and after the halving, their profits will also decrease. The price of shares of mining companies directly depends on the price of Bitcoin, and over the past month the price of shares of mining companies and Bitcoin has been growing symmetrically.
cobra_2015Full Member
Posts: 259 · Reputation: 728
#3Mar 5, 2021, 09:39 PM
It may seem like a good bet that the rise in the price of Bitcoin will encourage these companies to avoid selling their Bitcoin, especially during the coming year, and given that Bitfarms (BITF) is less exposed to the possibility of the Fed cutting interest rates due to its deleveraging campaign, I find that buying Bitcoin and investing in MARA It may give you a good chance to make a quick profit.
It is not investment advice and I do not advise you to go out of your way to invest long-term in these stocks.
hodler2019Legendary
Posts: 2182 · Reputation: 12913
#4Mar 6, 2021, 12:54 AM
I would not buy them.
I would mine.
If I cant mine I would buy coins.
vault_nodeFull Member
Posts: 174 · Reputation: 666
#5Mar 7, 2021, 09:24 AM
I am also of the opinion to buy bitcoin rather than buying companies that are mining bitcoin. They are exposed to the risk of price drop in halving and government regulations on miners. While buying bitcoin has lesser risk than that.
I am personally interested in investing in a mining setup - buying their shares but this is different, here you are buying stocks of the company not the mining setup and what costed it to be developed - there is a subtle difference here.
But I have failed to see any such mining setup and investments in the same till date that are legit and have not been scams.
If you are talking about cloud mining, then there are many difficulties in this business. The average miner has very few opportunities to buy cheap ASICs and get a good price for electricity, so most new small miners will now find it very difficult to compete with large mining companies.
Buying bitcoins or shares of mining companies is an individual choice. The stock market is more regulated by law, and many investors find it easier to buy shares while there is no Bitcoin ETF.
I think that there are some mining companies that will allow you to profit share if you invest in the hardware right? I think could mining is definitely the hot space right now. It's constantly advancing and these mining stocks are proving to be a great way to gain BTC exposure without actually buying the coin
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