Bernstein Singles Out Mining Stocks That Are Expected to Outperform

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Bernstein, a private wealth management company, has identified some mining stocks that may perform well after the halving process takes place.

According to Bernstein, CLSK and RIOT ranked first in the market for having the largest self-mining hash rates. The analyst is optimistic that these companies will surpass competitors because of their excellent execution skills.

Recently, CleanSpark surpassed the milestone of 17 exahashes per second (EH/s) in mining operations. To upgrade its fleet and boost efficiency by 17%, CleanSpark has improved its deal with Bitmain. This arrangement will allow the company to acquire 100,000 S21 Pro ASIC miners, a new model that promises higher efficiency. According to CleanSpark’s CEO, Zach Bradford, efficiency is the crucial factor for the upcoming halving event.

In the previous year, Riot Platforms achieved an unprecedented hash rate capacity of 12.4 exahashes per second. The company went on to earn over $280 million in revenue during the year 2023. Towards the end of the same year, Riot secured a significant deal with MicroBT, a major competitor of Bitmain, which would enable them to eventually expand their hash rate capacity beyond the 100 exahashes per second mark.

This year has been tough on mining stock investments. The majority of these stocks have experienced significant losses, with over 50% of their value being wiped out. An imminent reduction in block rewards is forecasted to negatively affect miners in the near term, particularly those less efficient companies.

According to U.Today’s report, Peter Schiff, known as a gold advocate, expressed his belief that Bitcoin might be quietly entering a bear market based on recent declines in Bitcoin mining stock values.

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2024-04-18 19:37