Cryptocurrencies have already had a great start to the year. But that rally isn’t over yet. Bitcoin is just days away from its halving, when the reward for mining the crypto is cut in half. Each of the prior halving events have seen a big price rally in the following months.
Today, investors have plenty of ways to play this trend, from bitcoin and altcoins to bitcoin ETFs. But a big winner here may be the crypto exchanges themselves.
These companies performed well during the last halving cycle, and today, the ones that still trade are still well off their highs. In the space, stick with industry leader Coinbase (COIN).
Shares recently got a price target upgrade, and the halving event could mean more crypto trading activity in altcoins on the platform.
Coinbase is coming off an unprofitable 12 months, but revenues are already trending higher, surging over 49%. The company’s narrow loss could easily swing to sizeable profits in the post-halving environment.
Action to take: Shares are a buy at current prices or on any drop in the next few weeks. Investors won’t get paid a dividend, but shares should show some strength through the end of the year.
For traders, the October $370 calls last trading for about $31.00, could see mid-to-high double-digit returns on a further rally in shares.
Disclosure: The author of this article has a position in the company mentioned here, and may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.