The share price performance of Bitcoin mining companies is closely tied to Bitcoin prices. So, investors looking to gain exposure to Bitcoin (BTCUSD) can consider buying shares of companies that mine the digital asset.
While BTC prices have surged over 40% year-to-date, many crypto mining companies have trailed the broader markets in 2024. One major reason is the “halving” event that took place in April 2024. The Bitcoin halving occurs every four years, after which the mining rewards are reduced by 50%. This suggests that the amount of Bitcoin that miners receive is cut in half, driving share prices lower – at least, until Bitcoin prices rise again.
But the pullback offers an opportunity to buy the dip and benefit from outsized gains once market sentiment improves. Here, we compare two quality mining stocks, CleanSpark (CLSK) and Riot Platforms (RIOT), to see which stock is a better buy right now.
