Investing in cryptocurrency isn’t for everyone. While some digital coins have seen nice profits and there’s a lot to be said with blockchain applications, there are also a lot of issues with the crypto space. That’s why I like to suggest crypto stocks as an alternative.
Crypto stocks are a way to invest in cryptocurrencies and blockchain through a regulated security. Rightly or wrongly, the unregulated nature of cryptocurrencies causes many investors to pause when considering an investment.
But when you buy crypto stocks, you are investing in an asset that is under the supervision of federal regulators – in the U.S., for instance, that’s the Securities and Exchange Commission.
While some crypto stocks hold cryptocurrencies themselves, others provide an avenue for trading or are involved in the infrastructure that powers the crypto market.
You can use the Portfolio Grader to find the best crypto stocks to buy right now. Crypto stock investors must embrace the volatility of emerging markets like cryptocurrencies.
The ride isn’t for everyone – but if you’re willing to buckle your seat belt, it could be a fantastic experience.
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) is a Bitcoin (BTC-USD) miner.
It’s a classic crypto stock that allows you to capitalize on the emergence of Bitcoin without actually buying the cryptocurrency yourself.
The company produced 894 Bitcoin in March, increasing its production by 8% from a year ago.
It operates at a hash rate, or production rate, of 27.8 exa hash per second (which is one quintillion hashes per second). That’s a massive increase from 15.4 EH/s it operated at just a year ago.
Marathon has big plans to continue to upgrade. The company announced on April 24 that it’s increasing its hash rate target for 2024 from a range of 35 EH/s to 37 EH/s to 50 EX/s.
The price of Bitcoin is up 50% in 2024, making Marathon’s mining activities even more lucrative. So while Marathon is down 20% in 2024, I expect good things when MARA reports first-quarter earnings in May.
MARA stock gets a “B” rating in the Portfolio Grader.
Robinhood Markets (HOOD)
Robinhood Markets (NASDAQ:HOOD) is a great way to play cryptos because it’s one company that made investing in both stocks and cryptos much simpler.
Robinhood operates as an online discount brokerage. Through its easy-to-navigate app, Robinhood allows investors to trade stocks, exchange-traded funds and cryptocurrencies.
The company currently counts 23.6 million funded customers in March, with trading volume of $80.9 billion that was a 41% increase from $57.3 billion a year ago.
Trading in cryptocurrencies was $6.5 billion for the month, up 86% from a year ago.
Interestingly, Robinhood also serves as a reliable proxy to Bitcoin. The stock has a 92% correlation to the price of Bitcoin so far this year, according to Citigroup analyst Christopher Allen.
That’s despite cryptocurrency accounting for only 13% of Robinhood’s estimated revenue in the first quarter.
HOOD stock is up 35% in 2020 and gets a “B” rating in the Portfolio Grader.
MicroStrategy (MSTR)
MicroStrategy (NASDAQ:MSTR) is an artificial intelligence-powered data analytics company that provides cloud-based services, mobile software and business intelligence.
It’s also an avid investor in Bitcoin. MicroStrategy recently purchased 9,245 Bitcoin as part of its latest investment, and now holds more than 214,000 of the digital currency.
The reasoning is clear. As an early investor in Bitcoin, MicroStrategy has invested $7.53 billion in Bitcoin and paid an average price of $35,160. But with Bitcoin now valued at more than $64,000, the company’s investment is now valued at more than $13.8 billion. That’s a great return.
MicroStrategy is a good way to invest in crypto if you believe that the price of Bitcoin will continue to increase. MSTR stock is up 98% in 2024 and gets a “B” rating in the Portfolio Grader.
Coinbase Global (COIN)
Coinbase Global (NASDAQ:COIN) operates a cryptocurrency trading platform. There are 248 types of cryptocurrency assets available for trade on the Coinbase platform, giving users broad access to the crypto space.
And the trading can be heavy. Coinbase reports that it deals with more than $150 billion per month in volume, and holds more than $190 billion in assets.
Investors tap into Coinbase from more than 100 countries around the world.
Coinbase is also a favorite, notably, of Cathie Wood’s Ark Invest, which has a $593 million position in COIN stock amid the company’s ETFs. COIN represents just over 9% of Ark Invest’s total platform.
Coinbase saw transaction revenue in the fourth quarter jump 83% from a year ago, reaching $529 million, while subscription and services revenue increased 12% to $375 million.
COIN stock is up 28% in 2024 and gets an “A” rating in the Portfolio Grader.
Bitfarms (BITF)
Bitfarms (NASDAQ:BITF) isn’t as well-known as some of the other names on this list. But it shouldn’t be ignored.
The Toronto-based company is a Bitcoin miner that has 11 farms in Canada, Paraguay, Argentina and the U.S.
The company has roughly 66,000 miners with a production capacity of 7 EH/s, with plans to increase that to 21 EX/s. The company’s efforts allowed it to produce 286 Bitcoin in March, and it sold 284 of them.
One word of warning on Bitfarms, however. The company is going through a CEO transition. CEO Geoffrey Morphy announced he is stepping down, after just two years on the job. Morphy is temporarily leading until they hire a new CEO.
While the new CEO will surely be in line with the board’s priorities, it will be important to find a CEO that will keep Bitfarms stock moving forward. If you invest, keep an eye out for developments.
BITF is down 31% in 2024, although it still shows gains of 81% in the last 12 months. It gets a “B” rating in the Portfolio Grader.
CleanSpark (CLSK)
CleanSpark (NASDAQ:CLSK) is another Bitcoin miner – this one which has data centers in New York and Georgia, with the majority of its operations in the Peach State.
CleanSpark is growing fast. IT currently has a fleet of nearly 134,000 miners with plans to increase that to 160,000. And it has a capacity of 16.4 EX/s with plans to increase that to 50 EX/s.
The company also uses Bitcoin as an investment. It holds more than 5,000 BTC currently, with a market value of more than $321 million.
CleanSpark earned $74 million in the fiscal first quarter of the year, mining more than 2,000 Bitcoin. In addition to its Bitcoin holdings it maintains a cash balance of $74 million versus only $14.5 million in debt.
CLSK stock is up 74% in 2024 and gets an “A” rating in the Portfolio Grader.
Cipher Mining (CIFR)
Cipher Mining (NASDAQ:CIFR) is a Bitcoin mining company. While it’s not as large as some of the other names on this list, Cipher still has 70,000 mining rigs with a hash rate of 7.6 EH/S.
The company produced 316 Bitcoin in March and sold 8, giving it a balance of 1,741 BTC. And it’s in process of developing and upgrading its facilities with an eye toward expanding capacity in the second quarter of the year to take advantage of the Bitcoin halving.
Revenue in 2023 was $126.8 million – a huge increase from $3 million in 2022. Cipher’s Bitcoin efforts grew substantially as it mined 6,283 BTC in 2022 and 32,978 in 2023.
Cipher’s growth in 2023 and its expansion plans for 2024 puts it in a solid position to continue its growth story. CIFR stock is up 7% in 2024, but up 101% in the last 12 months. It gets a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a long position in BTC. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
