Key Picks for Stocks to Sell Post-Bitcoin Halving
MicroStrategy (MSTR)
MicroStrategy (NASDAQ:MSTR) is a company heavily invested in Bitcoin, with around 1% of all Bitcoin currently in circulation. However, their aggressive stance on purchasing Bitcoin through debt has raised concerns among investors. Short seller Kerrisdale Capital has criticized MicroStrategy for overvaluation due to their significant Bitcoin holdings, suggesting that there are better investment options available. The stock price may be inflated, with potential downside risk post-halving.
Argo Blockchain (ARBK)
Argo Blockchain (NASDAQ:ARBK) has seen a decrease in daily Bitcoin output and mining income, signaling potential challenges ahead. The hash price of Bitcoin has dropped, along with network difficulty and transaction fees, impacting profitability. Shareholder dilution is also a concern, with a significant increase in issued shares. The tough operating environment for miners may worsen post-halving, making Argo Blockchain a stock to consider selling.
Iris Energy (IREN)
Iris Energy (NASDAQ:IREN) has experienced a slowdown in Bitcoin production and significant shareholder dilution. While mining income increased due to favorable market conditions, the use of share issuances for growth raises concerns. The absence of significant Bitcoin holdings compared to peers like Riot Blockchain, Marathon Digital Holdings, and CleanSpark may make Iris Energy less appealing post-halving. Companies with substantial Bitcoin holdings may benefit more from a halving event, making them potentially better investments.
Overall, understanding the impact of the Bitcoin halving on mining revenue and shareholder impacts is crucial when considering which stocks to sell post-halving. Companies heavily invested in Bitcoin through debt or facing challenges in mining efficiency may face downside risks, making them potential candidates for selling. Investors should carefully analyze the implications of the halving on these key picks for stocks to make informed decisions.
