After four years of waiting, the long-awaited one arrives Bitcoin (CRYPTO:BTC) The halving finally took place on April 19th. It promises to be another turning point in the history of Bitcoin. This is because each new halving cycle typically brings with it another bull market rally for Bitcoin as well as another all-time high.
But it’s not just Bitcoin that could be a big winner from the Bitcoin halving. Three other big winners are: Coinbase Global (NASDAQ:COIN), Microstrategy (NASDAQ:MSTR)And BlackRock (NYSE:BLK). Let’s take a closer look.
Coinbase Global
The obvious winner is of course Coinbase. First, the start of a new bull market rally for Bitcoin could cause retail investors to return to the company’s cryptocurrency trading platform, thereby driving up Coinbase’s transaction-related revenue. And since a rising price for Bitcoin is traditionally beneficial for the broader crypto market, trading in many, if not all, of the more than 245 cryptos currently listed on the exchange is likely to increase.
And don’t forget the impact of the halving cycle on investor interest in the new spot Bitcoin ETFs. Obviously, investors will not be trading these new ETFs on Coinbase. But here’s the thing: Coinbase is the custodian for eight of the eleven new spot Bitcoin ETFs. Thus, Coinbase will indirectly benefit from investors choosing to purchase these new spot Bitcoin ETFs. The more money flows into spot Bitcoin ETFs, the more money Coinbase could make from custody fees.
Microstrategy
While MicroStrategy is ostensibly an enterprise software company, it is best known as the world’s largest corporate holder of Bitcoin. The company has been on a Bitcoin buying spree since mid-2020 and currently holds more than 214,000 Bitcoins on its balance sheet. That’s more than 1% of all Bitcoins in circulation. At today’s Bitcoin price of $66,000, these holdings are worth a whopping $14 billion, or about 60% of the total value of MicroStrategy itself!
MicroStrategy shows no signs of slowing down its Bitcoin acquisition strategy. The company’s founder and CEO, Michael Saylor, is considered one of the biggest Bitcoin bulls in the world and has been very transparent about his desire to own as much Bitcoin as possible. In fact, his company recently had two new bond offerings, both with the express goal of buying – you guessed it – more Bitcoin. If you are looking for a Bitcoin proxy stock, look no further than MicroStrategy.
BlackRock
Finally, there is BlackRock, the largest asset manager in the world with over $10 trillion in assets under management. The company is the issuer of the iShares Bitcoin Trust (NASDAQ:IBIT), the most popular of the new spot Bitcoin ETFs launched in January. In just over three months, the ETF’s assets under management rose from $0 to $17 billion. And you can expect this number to rise even further as the price of Bitcoin rises.
Admittedly, $17 billion is a drop in the bucket compared to the $10 trillion in assets the company manages. But the bigger picture is that top ETF issuers like BlackRock are using their flagship Bitcoin products to attract new investors. For example, if you bought the iShares Bitcoin Trust, you are much more likely to buy one of the company’s other ETFs.
BlackRock also said its new Bitcoin ETF is just the first step toward new product innovations in areas such as asset tokenization, which has been predicted by Boston Consulting Group as a $16 trillion market opportunity. Therefore, I view BlackRock as a very long-term attempt at mainstream adoption of Bitcoin and other crypto-related assets.
What is the best way to play the Bitcoin halving?
Three different companies, three different ways to play the Bitcoin halving. If you’re looking for a company that directly tracks the Bitcoin price, MicroStrategy is the clear choice. In many ways, MicroStrategy is a Bitcoin ETF masquerading as a software company. However, if you are looking for a more diverse approach to the price of Bitcoin, Coinbase is a better choice.
Of course, you could always just buy Bitcoin. If the 2024 halving is similar to the previous three Bitcoin halvings, it will be difficult to find an investment that has the potential to rise even further over the next 12 months.
Should you invest $1,000 in Bitcoin now?
Before buying Bitcoin stocks, consider the following:
The Motley Fool Stock Advisor The analyst team has just identified what they think this is The 10 best stocks so investors can buy it now… and Bitcoin wasn’t one of them. The ten stocks that made the cut could deliver huge returns in the years to come.
Think about when Nvidia created this list on April 15, 2005… if you have $1,000 invested at the time of our recommendation, You would have $537,557!*
Stock Advisor provides investors with an easy-to-follow roadmap to success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks per month. The Stock Advisor has service more than quadrupled the return of the S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns from April 22, 2024
Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.
3 Winners of the Bitcoin Halving was originally published by The Motley Fool