Cryptocurrencies have been absolutely soaring lately, and things are only getting better by the day in this market. As I write this, Bitcoin (BTC-USD) has broken above the $56,000 for the first time in more than two years. This move leads me to think that a new all-time high could be within reach, even before the next halving event kicks things into even higher gear.
I’ve said many times over the past year that cryptocurrencies have explosive upside potential in 2024 thanks to several key catalysts: the launch of spot ETF products, the upcoming Bitcoin halving, and likely interest rate cuts around the middle of this year. While the halving and rate cuts are still ahead of us, the approval of spot ETFs have already driven billions of dollars into Bitcoin, with more capital likely to flow into digital assets more broadly.
In this environment, I think investing in blockchain stocks is wise, since these companies often deliver even higher returns than the cryptocurrencies themselves. Many of these companies hold huge Bitcoin stashes and have been patiently waiting for Bitcoin to move higher before selling. With Bitcoin looking poised to hit new highs in the coming months as this bull run continues, conditions seem perfect for these stocks to soar.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is by far the best blockchain stock out there, in my opinion. The company utilizes subsidies to mine Bitcoin at some of the most cost-effective rates in the industry, resulting in hefty profits. Notably, Riot has stockpiled a significant amount of Bitcoin and acquired many mining rigs, positioning the company to potentially deliver multi-bagger returns if this bull run continues.
In 2023, Riot achieved record financial results, including all-time highs of $281 million in total revenue, 6,626 Bitcoins mined, and $71 million in power credits earned through the company’s unique power strategy. Additionally, Riot produced another 520 Bitcoin in January 2024. The company ended 2023 with $597 million in cash on hand, and given January’s production, Riot now has 7,648 Bitcoin in its reserves, worth around $428 million on top of its substantial cash reserves.
That stash could end up being worth much more in the months ahead. Thus, I’m incredibly bullish on Riot’s prospects for the long-term.
Bit Digital (BTBT)
A relatively lesser-known competitor to Riot Platforms, Bit Digital (NASDAQ:BTBT) is a Bitcoin miner I believe has tremendous upside potential. Obscure miners often see huge gains in crypto bull markets. That factor alone could lead to outsized gains if this rally continues.
As of January 2024, Bit Digital was operating with a hash rate of 2.50 exahashes per second (EH/s). In January, the company produced 145.7 Bitcoins, a 14% decrease from December 2023 due to temporary mining rig disruptions that have since been resolved.
That said, as of January 31, 2024, Bit Digital held approximately 739 Bitcoin and over 18,072 Ethereum (ETH-USD), valued at $41 million and $58 million, respectively. The company’s total digital asset holdings were equivalent to around 1,739 Bitcoins.
Bit Digital has been actively staking a sizable portion of its Ether holdings using both native and liquid staking protocols. In January 2024, the company staked nearly 12,800 Ether and earned blended annual staking rewards of 3.69%.
Additionally, Bit Digital continues working to expand its advanced mining hardware at an aggressive pace. With mining disruptions ironed out and expanded capacity coming online ahead of the halving, Bit Digital seems very well-positioned to capitalize on upcoming tailwinds.
Hive Blockchain (HIVE)
Hive Blockchain (NASDAQ:HIVE) is another lesser-known blockchain stock with immense upside potential. Hive Digital recently announced the purchase of 1,000 Bitmain S21 Antminers, which will provide 200 petahash per second of high-efficiency Bitcoin mining capacity. The S21 is Bitmain’s newest and most efficient Bitcoin mining system, with 17.5 joules per terahash.
Additionally, Hive now has 2,070 Bitcoin on its balance sheet as of February 21, 2024. Hive is preparing strategically for the Bitcoin halving event in late April 2024. This company appears well-positioned to benefit from the next halving as Bitcoin’s price continues to skyrocket. Hive is holding 100% of the Bitcoin it mines, so I believe it is on the right track to maximize gains during this bull cycle.
On the date of publication, Omor Ibne Ehsan 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.
