The halving is likely to have at most a temporary impact on Bitcoin mining companies; the most important factor is still the price of Bitcoin.
The Zhitong Finance App learned that the Bitcoin halving is expected to occur in April 2024, which will usually cause Bitcoin to rise higher in the next few months. But what impact will this incident have on Bitcoin mining companies? The halving means that Bitcoin mining companies will receive less Bitcoin, leading to a reduction in operating revenue for these companies. Does this mean that Bitcoin mining companies' stock prices will fall as Bitcoin is halved?
As can be seen from the last Bitcoin halving that occurred on May 11, 2020, there was a significant difference in the performance of some popular Bitcoin mining companies in the 150 days after the halving occurred:$Marathon Digital (MARA.US)$und$Riot Platforms (RIOT.US)$They all received impressive returns, and$Bitfarms (BITF.US)$und$Hut 8 (HUT.US)$Then there was a decline.
In fact, it is difficult to assess the extent to which the Bitcoin halving will affect Bitcoin mining companies' stocks because there are many factors to consider, including broader market developments, performance reports, etc. Additionally, investors may have set prices for Bitcoin mining companies' shares in half.
The halving is likely to have at most a temporary impact on Bitcoin mining companies; the most important factor is still the price of Bitcoin. If the price of Bitcoin continues to rise, then the halving may not matter, as these mining companies are likely to still earn much more in the future.
For investors, the difficulty of predicting Bitcoin's trend remains the biggest risk. While investors are optimistic about Bitcoin's future prospects, government regulation and user acceptance will ultimately determine Bitcoin's future price.
Editor/Somer