Bitcoin mining stocks have seen a significant decline in 2024, likely due to the upcoming Bitcoin halving in April.

Marathon Digital Holdings and Riot Platforms have experienced declines of 32% and 35% respectively.

The halving will reduce mining rewards, pushing the break-even point to a Bitcoin price of $40,000 and potentially causing many miners to go out of business.

Investing in a diversified ETF like the Valkyrie Bitcoin Miners ETF, also down 30%, may be a safer option.

Riot Platforms faces potential challenges due to its high cost structure, with depreciation costs likely to increase post-halving.

Even with a potential Bitcoin peak of $90,000, this may not cover Riot's expenses, leading to potential dilution of shareholder equity or an unfeasible business model.

Riot's stock price is down 44% since its peak, reflecting investor apprehension about its future.