11 Best Bitcoin Stocks to Buy Now
In this article, we discuss the 11 best Bitcoin stocks you can buy right now. If you want to skip our detailed analysis of the crypto industry and the prospects for future growth, go directly to 5 Best Bitcoin Stocks to Buy Now.
In November 2021, Bitcoin’s value reached an all-time high of $68,990 before closing at $64,995. However, due to rising inflation and pressure from macroeconomic forces, Bitcoin fell to $46,164 in mid-December 2021. Between January and May 2022, the digital currency continued to fluctuate with closing prices only reaching as high as $47,445 in late March before falling . to $28,405 on May 11. On June 13, 2022, Bitcoin’s price plunged below $23,000 for the first time since December 2021. Today, bitcoin is trading around $18,700 and it doesn’t look like the price will drop until the Fed is done raising short-term interest rates.
According to the global investment banking giant JP Morgan, the long-term price of Bitcoin may reach up to $150,000, which is almost six times higher than the current price of Bitcoin. The global size of the cryptocurrency mining market is currently $915.8 million and is predicted to reach $1125.8 million by 2028. However, all these figures are just estimates and guesses. No one really knows the true intrinsic value of a Bitcoin because it generates no cash flow and its price is determined by the general sentiment of the investing public. One reason to be optimistic about bitcoin and a few of the other cryptocurrencies is that it is now almost certain that cryptocurrencies will be widely used in the future and the demand for cryptocurrencies will probably be much higher than it is today. Higher demand and utilization usually mean higher prices.
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Methodology
So how do we come up with our list of the best bitcoin stocks to buy? We selected the most popular Bitcoin stocks among the 900 elite hedge funds tracked by Insider Monkey at the end of the first quarter. This is before the onset of significant declines in share prices and helps us identify the stocks before some marginal hedge funds are forced to close their speculative positions due to investor redemptions. We will publish an updated version of this list in a couple of weeks when hedge funds disclose their holdings at the end of September. Here are the best bitcoin stocks to buy according to hedge funds:
11. Hut 8 Mining Corp (TSX:COTTAGE)
Number of hedge fund owners: 7
Hut 8 Mining Corp (TSX:HUT) is one of the oldest and largest digital asset miners in North America. The Toronto-based organization specializes in Bitcoin and Ethereum mining.
Recently, investment banking firm Stifel resumed coverage of Hut 8 Mining Corp (TSX:HUT) with a “Buy” rating and a price target of $11. Also, on May 13, Canaccord analyst Joseph Vafi maintained a ‘Buy’ rating on the shares of Hut 8 Mining Corp (TSX:HUT) and gave it a price target of $6.
According to Insider Monkey 7’s database, hedge funds held $7.9 billion worth of stakes in Hut 8 Mining Corp (TSX:HUT) at the end of Q1 2022.
10. Riot Blockchain, Inc. (NASDAQ:RIOT)
Number of hedge fund owners: 14
Riot Blockchain, Inc. (NASDAQ:RIOT) is a Bitcoin mining company that supports the Bitcoin blockchain through industrial-scale mining in the United States. The company’s facility in Rockdale, Texas is the largest Bitcoin mining and hosting facility in North America. According to the Twitter handle of the company that produced it 318 Bitcoins in July 2022.
After analyzing the global hash rate forecasts and estimates of the crypto miners on June 28, Compass Point analyst Chase White upgraded Riot Blockchain to “Buy” from “Neutral” with a price target of $14. Also, B. Riley analyst Lucas Pipes maintained a “Buy” rating on Riot Blockchain, Inc. (NASDAQ:RIOT) with a price target of $16.
According to Insider Monkey 14’s database, hedge funds held $28.6M worth of stakes in Riot Blockchain, Inc. (NASDAQ:RIOT) at the end of Q1 2022.
9. MicroStrategy Inc. (NASDAQ:MSTR)
Number of hedge fund owners: 14
MSTR ranks 9th on our list of the best bitcoin stocks to buy. MicroStrategy Inc. (NASDAQ:MSTR) is an analytics software company that provides business intelligence and cloud-based services. The organization started buying Bitcoins in 2020 and since then it has built up large reserves of this valuable cryptocurrency. As of May 2022, MicroStrategy Inc. (NASDAQ:MSTR) held approximately 129,218 Bitcoins.
On August 3, Canaccord analyst Joseph Vafi lowered his firm’s price target on MicroStrategy to $372 from $453, but maintained a “Buy” rating on shares of MicroStrategy Inc. (NASDAQ:MSTR) and argued that the organization faces no risk of solvency.
According to Insider Monkey database, 14 hedge funds held $85.1 million worth of stakes in MicroStrategy Inc. (NASDAQ:MSTR) at the end of 2022Q1.
8. Silvergate Capital Corp (NYSE:SAY)
Number of hedge fund owners: 35
Silvergate Capital Corp (NYSE:SI) provides banking and other financial services to businesses working in the cryptocurrency space. Among its offerings is a digital network that helps large clients such as crypto exchanges, cryptocurrency miners and institutional investors, including private equity firms, execute transactions.
On July 20, Wells Fargo analyst Jared Shaw maintained an ‘Overweight’ rating on shares of Silvergate Capital Corp (NYSE:SI) and raised his firm’s price target on Silvergate Capital Corp (NYSE:SI) to $115 from $100. Also, on August 4 investment banking firm BTIG started coverage on Silvergate Capital Corp (NYSE:SI) and gave it a “Buy” rating.
According to Insider Monkey 35 database, hedge funds held $838.6M worth of Silvergate Capital Corp (NYSE:SI) at the end of 2022Q1.
7. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of hedge fund owners: 43
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is currently one of the leading digital asset technology companies in the United States. The Las Vegas-based company engages in cryptocurrency mining, focusing on the blockchain ecosystem and generating digital assets.
On July 18, Marathon Digital Holdings, Inc. (NASDAQ:MARA) announced that it has secured approximately 254 megawatts of new hosting arrangements for the company’s Bitcoin mining operations. As a result of these developments, Marathon Digital Holdings, Inc. (NASDAQ:MARA) has now secured sufficient hosting arrangements to support its previously stated goal of approximately 23.3 cryptographic exahashes per second of Bitcoin mining computing power.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) produced 707 self-mined Bitcoin during the second quarter of 2022, an increase of 8% from 654 bitcoin mined during the same period in 2021.
On March 8, Compass Point analyst Chase White raised the company’s price target on Marathon Digital Holdings, Inc. (NASDAQ:MARA) to $66 from $48 and maintained a Buy rating on the stock.
6. Coinbase Global, Inc (NASDAQ:COIN)
Number of hedge fund owners: 46
Coinbase Global, Inc (NASDAQ:COIN) is one of the leading cryptocurrency exchanges, with nearly 98 million verified users. The crypto trading platform allows users to buy and sell cryptocurrencies, including Bitcoin, Ethereum, Solana, Cardano and over 200 other coins. In addition, the company offers blockchain analytics to governments, crypto businesses and financial institutions. Coinbase Global, Inc (NASDAQ:COIN) recorded EPS surprises in all four quarters of 2021.
On July 14, DA Davidson analyst Christopher Brendler told investors that the “crypto winter” of 2022 will ultimately prove beneficial for Coinbase Global, Inc (NASDAQ:COIN) and maintained a “Buy” rating on the organization’s shares. Similarly, on July 12, JMP Securities analyst Devin Ryan maintained an “Outperform” rating on shares of Coinbase Global, Inc (NASDAQ:COIN).
Similarly, several other Bitcoin stocks, including MicroStrategy Inc. (NASDAQ:MSTR), PayPal Holdings (NASDAQ:PYPL), Block, Inc. (NYSE:SQ), and Marathon Digital Holdings, Inc. (NASDAQ:MARA) have received positive ratings from various analysts over the past couple of weeks.
According to Insider Monkey 46’s database, hedge funds held $2.32B worth of Coinbase Global, Inc (NASDAQ:COIN) at the end of Q1 2022.
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Disclosure: None. Best Bitcoin Stocks to Buy is originally published on Insider Monkey.
