Last month, Standard Chartered released a report that Bitcoin (BTC-USD) can hit $100,000 by the end of 2024. The target seems steep, but cryptocurrencies have a history of skyrocketing in the blink of an eye.
Standard Chartered cites stress in the traditional banking system as one of the catalysts for a Bitcoin rally. I believe that a dovish stance by the Federal Reserve in the second half of 2023 will also contribute to the rally.
Additionally, Bitcoin halving is due in 2024. Going by past instances, the halving event is followed by a rally for Bitcoin and other cryptocurrencies. With these positives, it’s a good time to accumulate quality crypto projects.
Further, investment can also be considered in some of the best crypto stocks for a Bitcoin rally. If Bitcoin touches $100,000, the crypto stocks to buy can deliver multibagger returns.
Let’s discuss the reasons to be bullish on these crypto stocks.
Coinbase (COIN)
As the second largest crypto exchange in the world, Coinbase (NASDAQ:COIN) is among the best crypto stocks to buy.
On the day of the Q1 2023 results, COIN stock surged by 18%. This was on the back of a revenue and earnings beat. With Bitcoin likely to trend higher, I believe that COIN will remain in an uptrend.
It’s worth noting that the rally in Bitcoin and the broader crypto space translates into higher trading and speculative activity. The recovery in revenue along with margin improvement is on the cards in the coming quarters.
Coinbase is also expanding its addressable market potential. In Q1, the company made inroads in Canada, Brazil, and Singapore. With plans to expand into more markets, revenue growth acceleration is likely to be meaningful.
The company’s subscription and services revenue has also continued to swell. For Q1, the revenue was $361.7 million, which was higher by over 100% on a year-on-year basis. With a strong retail and institutional client base, the outlook is positive for COIN stock.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) has skyrocketed by 242% in year-to-date 2023. During this period, Bitcoin has surged by over 70%. The big rally is an indicator of the upside potential if Bitcoin touches $100,000.
As an overview, Riot Platforms is a Bitcoin miner. There are two reasons to like Riot over peers. First, the company has a solid balance sheet with zero debt and $230 million in cash and equivalents.
Further, Riot is a low-cost miner. Last year, the company reported a gross mining margin of 60.3%. With Bitcoin trending higher, I expect healthy EBITDA margin expansion and cash flow upside for the company.
It’s also worth noting that Riot has been continuously increasing its mining capacity. As of April, the company reported a capacity of 10.6EH/s. Riot expects to boost capacity to 12.5EH/s in the second half of 2023. Considering the balance sheet health, I expect capacity expansion to continue. Therefore, there is visibility for robust revenue growth in 2023 and beyond.
Block (SQ)
Block (NYSE:SQ) stock has been in a sustained downtrend. However, it remains in my list of best crypto stocks for a Bitcoin rally.
It was back in December 2021 that Square re-branded as Block. The idea was to emphasize the company’s focus on blockchain technology. The bear market for cryptocurrencies has impacted developments. However, as the crypto winter ends, there are reasons to be bullish.
It’s worth noting that the company’s Cash App is being used to buy and sell Bitcoin. Additionally, it was reported in 2021 that the company is building a decentralized finance business using Bitcoin. Last year, it was reported that Jack Dorsey was building Web5 based on Bitcoin.
My point is that there are developments in the background. Block has ample financial flexibility to invest in blockchain technology. With a big correction in SQ stock, it seems like a good time to accumulate.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
