According to a report by CoinDesk, JPMorgan stated in a research report on Tuesday (16th) that the recent weakness in cryptocurrency mining-related stocks before the Bitcoin (BTC) halving has provided investors with an attractive entry point.
From March 31 to April 15, the total market value of 14 Bitcoin mining companies tracked by JPMorgan fell to $14.2 billion, a decrease of approximately 28% ($5.8 billion). The prices of these stocks have underperformed Bitcoin and have all fallen by at least 20%.
The report pointed out that Bitcoin has risen by 43% so far this year and has risen by 130% in the past six months because “the typical post-halving rebound seems to have occurred partly in advance.”
The Bitcoin halving mechanism, which occurs once every four years, reduces the block rewards earned by miners and slows down the growth rate of Bitcoin’s supply. According to data from CoinMarketCap, the upcoming halving event is expected to take place this Saturday (April 20) Taiwan time, and the block rewards will decrease from the current 6.25 BTC to 3.125 BTC.
JPMorgan stated that it particularly favors Riot Platforms (RIOT) and Iris Energy (IREN), which have attractive relative valuations. Analysts Reginald Smith and Charles Pearce wrote:
JPMorgan also pointed out that the mining profitability in the first two weeks of April has declined due to the “growth rate of network hashrate exceeding the rate of Bitcoin price increase.”
