It’s likely that Bitcoin (BTC-USD) will come back stronger than ever in 2024. There are multiple reasons to be bullish on the cryptocurrency that has already surged in the last few quarters. A good alternative to Bitcoin investing is exposure to spot ETFs. Further, investors can benefit by considering exposure to some of the best crypto stocks to buy.

Specifically, the introduction of the Bitcoin spot ETF is a major catalyst that will translate into higher investor participation and wider crypto adoption. And, with Bitcoin halving this year, it’s likely that the cryptocurrency will rally after the halving event.

Also, the Federal Reserve’s potential rate cuts in 2024 will consequently support Bitcoin. Expansionary monetary policies would imply higher liquidity in the financial system and would support a rally in risky asset classes. Given the bullish outlook, let’s talk about three crypto stocks to buy for multibagger returns this year.

Riot Platforms (RIOT)

With the recent retreat in Bitcoin, there has been a correction in Bitcoin miners. This seems like a good opportunity to accumulate, and Riot Platforms (NASDAQ:RIOT) certainly looks attractive. Once the cryptocurrency trends higher again, RIOT stock could skyrocket, considering the expansion plans.

Notably, Riot has a strong balance sheet. With zero debt and $599 million in cash buffer (including digital assets), Riot is positioned to make large investments for accelerating growth. With swelling hash rate capacity and upside in Bitcoin, I expect strong upside in free cash flows in the next 12 to 24 months.

Specifically, Riot reported hash rate capacity of 12.4EH/s as of December 2023. By the end of this year, capacity is expected to increase to 28.8EH/s and further to 38.1EH/s by the end of 2025. Therefore, RIOT stock is poised to surge once Bitcoin trends higher after a breather.

Coinbase (COIN)

In terms of closing highs, Coinbase (NASDAQ:COIN) stock traded above $350 in November 2021. Once the crypto winter ensued, COIN stock plunged.

However, in the last 12 months, COIN has surged by 175% from oversold levels. The rally will probably sustain in 2024 and COIN stock can surge by 200% if Bitcoin trades above previous all-time highs.

The Coinbase bullish thesis is straightforward. As Bitcoin surges, the altcoin rally will follow. Further, there will be increased trading and speculation activity. This will translate into strong growth in brokerage income. Further, subscription revenue is likely to swell. Overall, the impact on revenue and EBITDA margin expansion is likely to be significant.

Interestingly, Coinbase accelerated global expansion in 2023. This included an eight-week expansion drive in six continents. Also, the company is targeting the launch of crypto derivatives in the European Union. Therefore, as compared to the last bull market, Coinbase will have a bigger addressable market. This will translate into stellar growth and cash flow upside.

Bitfarms (BITF)

Among penny crypto stocks to buy, Bitfarms (NASDAQ:BITF) looks attractive even after a rally of 141% in  the last 12 months. Bitfarms is yet another Bitcoin miner with aggressive growth plans and a strong balance sheet. Further, the company has an attractive cost of Bitcoin mining, which would imply healthy EBITDA margin.

In terms of expansion, Bitfarms reported hash rate of 6.3EH/s as of November 2023. The company is targeting expansion to 17EH/s by the second half of 2024. With nearly tripling of mining capacity, Bitfarms is positioned for stellar revenue and EBITDA expansion.

Another important point is that Bitfarms ended 2023 with $84 million in cash and $34 million in Bitcoin. This implies a total liquidity buffer of $118 million. This provides ample flexibility for aggressive expansion plans. Additionally, BITF aims to be debt-free by February. Therefore, the penny stock represents a company with strong fundamentals.

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.