After four years of waiting, the long-awaited Bitcoin (CRYPTO: BTC) The halving finally took place on April 19th. It promises to be another watershed in the history of Bitcoin. This is because each new halving cycle typically brings another market rally for Bitcoin, as well as another all-time high.

But it’s not just Bitcoin that could be a big winner in the Bitcoin halved. Three other big winners include Coinbase Global (NASDAQ: CURRENCY), Microstrategy (NASDAQ:MSTR), and Black stone (NYSE:BLK). Let’s take a closer look.

Coinbase Global

The obvious winner, of course, is Coin base. First, the start of a new bull market rally for Bitcoin could prompt retail investors to return to the company’s cryptocurrency trading platform, thereby increasing Coinbase’s transaction-related revenues. And since rising Bitcoin prices are also traditionally good for the broader cryptocurrency market, there is likely to be increased trading in many, if not all, of the 245+ cryptocurrencies currently listed on the exchange.

And don’t forget the effect of the halving cycle on investor appetite for the new spot Bitcoin ETFs. Obviously, investors will not go to Coinbase to trade these new ETFs. But here’s the thing: Coinbase is the custodian of eight of the 11 new spot Bitcoin ETFs. Thus, indirectly, Coinbase will benefit from investors’ decision to purchase these new Bitcoin ETFs in cash. The more money flows into spot Bitcoin ETFs, the more money Coinbase could make in custody fees.

Microstrategy

Although MicroStrategy is ostensibly an enterprise software company, it is best known as the largest corporate holder of Bitcoin in the world. The company has been on a Bitcoin buying spree since mid-2020 and currently holds more than 214,000 bitcoins on its balance sheet. This represents more than 1% of all Bitcoin in circulation. At Bitcoin’s current 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 in its Bitcoin acquisition strategy. The company’s founder and executive chairman, Michael Saylor, is known as 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 made two new debt offerings, both for the express purpose of – you guessed it – buying more Bitcoin. If you are looking for a Bitcoin proxy stock, look no further than MicroStrategy.

Black stone

Finally, there is BlackRock, the largest asset manager in the world, with more than $10 billion in assets under management. The company is the issuer of iShares Bitcoin Trust (NASDAQ: IBIT), the most popular of the new spot Bitcoin ETFs launched in January. In the space of just over three months, the ETF went from $0 to $17 billion in assets under management. And you can expect this number to grow even more as the price of Bitcoin increases.

The story continues

Image source: Getty Images.

It’s true that $17 billion is a drop in the ocean compared to the $10 billion in assets the company manages. But the bigger picture is that major ETF issuers like BlackRock are using their flagship Bitcoin products as a way to attract new investors. Once you purchase the iShares Bitcoin Trust, for example, you are much more likely to purchase one of the company’s other ETFs.

BlackRock also said its new Bitcoin ETF is just the first step toward product innovations in areas such as asset tokenization, which has been projected as a $16 trillion market opportunity by the Boston Consulting Group. Therefore, I see BlackRock as a very long-term bet on the widespread adoption of Bitcoin and other crypto-related assets.

What is the best way to play Bitcoin halving?

Three different companies, three different ways to play Bitcoin halving. If you are looking for a company that is directly leveraged on the price of Bitcoin, the right choice is MicroStrategy. In many ways, MicroStrategy is a Bitcoin ETF masquerading as a software company. If you’re looking for a more diversified bet on the price of Bitcoin, Coinbase is the best choice.

Of course, you can always buy Bitcoin. If the 2024 halving is anything like Bitcoin’s three previous halvings, it will be difficult to find any investment that has the potential to rise even higher in the next 12 months.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin and Coinbase Global. The motley fool has a disclosure policy.

3 Bitcoin halving winners was originally published by The Motley Fool

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