Halving and promotions
Someone may have a question, but what effect does halving have on stocks in general? After all, in fact, it has to do with bitcoin, but not with company securities. In general, yes, but the problem is that speculative stock trading is largely tied to psychology. And if the company is involved in cryptocurrency in any way, then any event, even a minor one, can have a huge impact, and even more so such a large one as halving. Let's find out what happened to the shares of companies that hold, mine or accept bitcoin as a means of payment.
Galaxy Digital Holdings (TSX: GLXY)
The American company Galaxy Digital Holdings opens the list with a market capitalization of $3.21 billion. Its main areas of activity are asset management, including cryptocurrency, and providing business access to various blockchain solutions. Although Galaxy Digital is headquartered in New York, the company is multinational and also operates in Asia and Europe. After halving, GLXY shares rose by 12.07%.
Source: tradingview.com
Phoenix Group (PHX: ADX)
In ninth place, the only representative of the Asian market in the top is Phoenix Group, a mining company from the United Arab Emirates (UAE). Its market capitalization is $3.63 billion. Halving had a positive effect on the company's shares: from April 20 to April 26, they rose by more than 5%.
Source: tradingview.com
CleanSpark (NASDAQ: CLSK)
CleanSpark is in eighth place with a capitalization of $4.33 billion. Its main activity is bitcoin mining, while a special role in the process is given to the environmental component. Halving had a positive effect on the company's shares: after it, they added 11.8%. At the same time, on April 24, they were even higher.
Source: tradingview.com
Marathon Digital Holdings (NASDAQ: MARA)
Another mining company, Marathon Digital Holdings, is in seventh place. Its market capitalization is $5.2 billion. Since the end of February, Marathon Digital shares have experienced a fairly deep correction, falling by more than half. However, with the onset of halving, things improved, and since April 20, Marathon Digital securities have risen in price by almost 18%.
Source: tradingview.com
MicroStrategy (NASDAQ: MSTR)
The sixth place is taken by MicroStrategy with a capitalization of $22.61 billion. Its main activities are related to mobile applications, business solutions and cloud storage. In the crypto industry, the company has established itself for the most part as an investor in BTC. According to the latest information, its unrealized profit from cryptocurrency is $6.2 billion. MicroStrategy shares reacted quite positively to the halving, adding 9.22%. This contrasts strongly with the results of April as a whole: by the end of the month, the company's securities are losing almost a quarter of their value.
Source: tradingview.com
Grayscale Bitcoin Trust (NYSE: GBTC)
The fifth place belongs to the spot exchange—traded fund (ETF) for bitcoin from Grayscale - GBTC. Its capitalization is $39.28 billion. At the same time, since halving, GBTC shares (units) have decreased by almost 1%. This is explained by the continued outflow of money from the fund. Last week, he set a world record among all exchange-traded funds: funds have been flowing out of GBTC for more than 70 days. Obviously, such statistics do not add any positivity to investors.
Source: tradingview.com
Block (NYSE: SQ)
Block (formerly Square) is in fourth place in terms of market capitalization with $45.85 billion. Since halving, its shares have gained 5.77% in price. Block continues to expand its presence in the crypto industry. So, last week it became known that the company has completed the development of a three-nanometer bitcoin mining chip. The next step in the development of Block should be the construction of a mining system. The organization is going to design it on its own.
Source: tradingview.com
Coinbase (NASDAQ: COIN)
The third place belongs to the American cryptocurrency exchange Coinbase with a market capitalization of $57.25. After halving, its shares gained almost 12%. At the same time, April was generally unsuccessful for Coinbase: the company's securities fell by almost 11%. Further movement in stocks will largely be determined by the earnings report, which is scheduled for release on May 2, 2024. According to the Zacks model, which determines the attractiveness of stocks based on their past performance, Coinbase represents a profitable investment.
Source: tradingview.com
PayPal (NASDAQ: PYPL)
The second place is occupied by the PayPal payment company with a market capitalization of $69.43 billion. It also provides access to cryptocurrency transactions. Last week, it became known about a possible cooperation between PayPal and Worldcoin (87th place in capitalization among cryptocurrencies). The company, however, has so far declined to comment. After halving, PayPal shares rose by 5.86%.
Source: tradingview.com
Tesla (NASDAQ: TSLA)
In the first place in the ranking, by a huge margin, is the manufacturer of electric vehicles and at the same time a major investor in bitcoin — Tesla with a market capitalization of $ 536.71 billion. After halving, its shares cheered up slightly as a result of a ten-month correction, adding 14.27%. Although, perhaps, the greater impact was not so much the decrease in the reward for mining the block, as the statement by Elon Musk about plans to produce car models more affordable for the public.
Source: tradingview.com
Conclusion
Thus, the majority — nine out of ten — of the companies in the presented rating have increased in price since the halving. The only exception was the bitcoin spot ETF from Grayscale, which continues to break records for the duration of cash outflows.
This material and the information in it do not constitute an individual or other investment recommendation. The editorial board's opinion may not coincide with the opinions of the author, analytical portals and experts.