Published on 2 May 2024 on Motley Fool via Yahoo Finance
Thinking of Buying a Bitcoin Mining Stock After the Halving? Consider a Bitcoin Miner ETF Instead
In 2023, Bitcoin (CRYPTO: BTC) mining stocks were some of the best investments you could make. The largest Bitcoin miners, such as Marathon Digital Holdings Inc. (NASDAQ: MARA) and Riot Platforms Inc. (NASDAQ: RIOT), were up triple digits for the year. As long as the price of Bitcoin soared, they stood to make money hand over fist, and investors rewarded them with rich valuations.
But in 2024, the situation changed. It's getting harder and harder to pick winners in the Bitcoin mining industry right now. Previous big winners like Marathon Digital and Riot Platforms are down as much as 20% for the year, and their future outlook is now uncertain. That has me thinking that investors should consider diversifying their risk by investing in a Bitcoin miner ETF instead.
Effect of the Bitcoin halving