As the date of Bitcoin's halving approaches in mid-April, the cryptocurrency has shown significant resilience and growth potential with its value surpassing $70,000. Consequently, investors are closely monitoring related blockchain stocks as the cryptocurrency experiences another price rally.

The surge in Bitcoin's price is also impacting crypto miners and blockchain companies. The current cryptocurrency innovator is seizing the moment to rise above previous setbacks. Although its stock price has not fully caught up to the increased value, it presents a potentially lucrative buying opportunity. This article focuses on Riot Platforms (NASDAQ: RIOT) and provides reasons why this Bitcoin stock should be considered.

Bitcoin's Volatility

Cryptocurrencies are known for their high volatility, with Bitcoin exhibiting cyclical price shifts involving extended bull and bear trends in recent years. The market rally in 2021 drove Bitcoin to its peak of $69,000, followed by a lean period in 2022. However, signs of a new bull market emerged in 2023, with many predicting a new price peak in 2024, potentially surpassing $80,000.

Past performance may not predict future outcomes accurately, but Bitcoin's current performance is translating into increased value for blockchain stocks, particularly for mining-related companies like Riot Platforms.

Riot Platforms' Potential

While Bitcoin's price is currently high, the impending halving will reduce mining rewards, affecting smaller-scale operations adversely. Fortunately, Riot Platforms operates the largest Bitcoin mining farm in the US in Rockdale, Texas, with plans to establish a 1 GW mining facility in Corsicana. This expansion will significantly boost the company's mining hash rate, setting it apart from its smaller rivals struggling to meet escalating demand.

Undervalued Stock?

Riot Platforms' value is closely linked to Bitcoin due to its primary function of mining the token. Contrary to common investing logic, the stock value of Riot Platforms has not paralleled Bitcoin's trajectory. Despite its extensive mining capabilities, significant Bitcoin holdings, and substantial revenue, the company's valuation in relation to Bitcoin appears disproportionately low. This discrepancy could lead to a notable market correction, as previous instances have shown.

About Riot Platforms

Riot Platforms, Inc. (NASDAQ: RIOT) is a prominent Bitcoin infrastructure and management company with the largest Bitcoin mining farm in North America. Founded in 2000 and headquartered in Castle Rock, Colorado, the company specializes in institutional-scale Bitcoin mining, data center hosting, and system engineering. Riot Platforms also supports other miners with essential infrastructure and services.

Stock Forecast

Analysts anticipate a correction in the price disbalance between Bitcoin and Riot Platforms' stock prices. With a predicted average price target of $20.25 and high forecast of $25.50, Riot Platforms remains an attractive option in anticipation of a potential blockchain stock boom driven by its solid performance despite its current undervaluation.

Investors considering Riot Platforms should acknowledge the dependency of the company's value on Bitcoin's performance, despite the current disconnect between stock price and Bitcoin value trends.

Disclaimer: The content presented is not financial advice and comes with speculative risks. Capital is at risk when investing in volatile markets.