At the blink of an eye, Bitcoin (BTC-USD) has surged and is trading at new all-time highs. With the halving even due, I expect the positive momentum to sustain. Analysts are talking about the cryptocurrency touching $115,000 after halving. In the coming quarters, investors can expect some big action in the altcoin space. Another way of exposure to the crypto bull market is through crypto stocks.

Given the point that Bitcoin is likely to surge above $100,000 this year, I am bullish on some of the best Bitcoin miners. If the Bitcoin rally sustains, mining stocks are poised for multibagger returns from current levels with an investment horizon of 24 months.

I must add that the impact of halving is discounted in Bitcoin mining stocks. The focus in the next few quarters is likely to be on the EBITDA margin and cash flows. I am optimistic on that front and as the cash buffer for miners swell, they will be positioned for further expansion or diversification.

Let’s therefore discuss three crypto stocks to buy for multibagger returns in the next 24 months

Riot Platforms (RIOT)

Riot Platforms (NASDAQ:RIOT) stock has trended higher by 22% in the last six months. However, with Bitcoin trading at new all-time highs, the best part of the rally is due for RIOT stock. The Bitcoin miner has strong fundamentals and an aggressive expansion plan that backs the bull thesis.

From a financial perspective, Riot reported cash and equivalents (including Bitcoin holdings) of $908 million as of Q4 2023. Further, with a zero-debt balance sheet, financial flexibility is high for big investments.

It’s not surprising that Riot has big expansion plans through 2025. At the end of last year, the Company reported hash rate capacity of 12.4EH/s. Capacity is likely to increase to 31.5EH/s and 40.8EH/s towards the end of 2024 and 2025 respectively. Given the rally in Bitcoin, this is likely to translate into stellar revenue and cash flow upside. In my view, RIOT stock is poised for 2x or 3x returns within the next two quarters.

Bitfarms (BITF)

Among penny crypto stocks, Bitfarms (NASDAQ:BITF) looks attractive for multibagger gains. Currently, BITF stock trades at $2.4. I would not be surprised if the stock is trading in double digits by the end of the year.

An important point to note is that Bitfarms reported a liquidity buffer of $118 million as of December 2023. Recently, the Company announced a $375 million at-the-market equity offering. Therefore, Bitfarms has high financial flexibility to pursue aggressive expansion. Further, the Company has a debt-free balance sheet.

From the perspective of expansion, Bitfarms reported hash rate capacity of 6.5EH/s as of February. The Company is targeting to increase capacity to 21EH/s in the second half of the year. With tripling of mining capacity, I expect stellar revenue and cash flow growth.

Further, if sentiments remain positive, I expect Bitfarms to announce the next round of expansion that targeted for 2025.

Marathon Digital (MARA)

At a forward price-earnings ratio of 22.2, Marathon Digital (NASDAQ:MARA) is another attractive Bitcoin miner to consider. MARA stock has surged by 200% in the last 12 months. However, considering the hash rate capacity expansion, I am bullish on further upside.

It’s worth noting that the Company’s energized hash rate for 2023 has increased by 253% on a year-on-year basis to 24.7EH/s. This translated into a 229% growth in revenue to $387.5 million. While growth has already been stellar, there are two important points to note.

First, Marathon is positioned to benefit from higher realized Bitcoin price this year. I expect significant EBITDA margin expansion. Further, Marathon is targeting hash rate capacity of 50EH/s in the next 18 to 24 months. Therefore, stellar revenue growth will sustain in the next few years.

I must add that Marathon ended 2023 with cash and equivalents of $997 million. At the same time, the Company deleveraged significantly. Financial flexibility therefore remains high to invest in aggressive expansion plans.

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.