雅虎香港財經 10 Most Profitable Cryptocurrency Stocks
In this article, we will be taking a look at the 10 most profitable cryptocurrency stocks. To skip our detailed analysis of the cryptocurrency stock market, you can go directly to see the 5 Most Profitable Cryptocurrency Stocks.
The crypto market saw a prolonged decrease in the prices of cryptocurrencies following 2021, which has been termed the 'Crypto winter'. However, despite reaching a bottom in 2022, cryptocurrencies have seen a major rally in 2023. Between the start of 2023 and March 1st, Bitcoin is 40.1% higher while Ethereum is 35.3% higher. Furthermore, compared to its low in November, Bitcoin has risen by more than 53%. Yet, despite a strong correlation between crypto-exposed stocks and bitcoin, a number of crypto-exposed stocks including Marathon Digital Holdings, Inc. (NASDAQ:MARA), Riot Platforms, Inc. (NASDAQ:RIOT), and CleanSpark, Inc. (NASDAQ:CLSK) were in the red and analysts attribute this to bitcoin's weakened relationship with the stock market compared to previous years.
The crypto market is also seeing a regulatory crackdown. According to a report by the Wall Street Journal, the Securities and Exchange Commission has been investigating violations of investor-protection laws by different currencies. The SEC has already reduced the power of some middlemen offering lending services for cryptocurrencies. Coinbase Global Inc (NASDAQ:COIN), is one of the companies that has disclosed being investigated by the SEC, and Forbes predicts these will make it harder for crypto exchanges to keep customers' crypto assets secure.
Despite this, some crypto markets still have long-term growth potential. According to Blaxberg, when Bitcoin hits $25,000 as forecasted, it will be a major psychological boost for crypto investors. According to the Coin Telegraph, venture capitalist firms also poured investments worth $14.2 billion in the first half of 2022. While the rate of investments slowed down in the second half of 2022 due to the crypto winter, analysts predict them to increase again as the values of cryptocurrencies resurge.
With the rise of the digital realm, which was further boosted by the Covid-19 pandemic, investing in the digital space seems to have enormous potential. Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) are all companies that have invested heavily in the crypto market.
Photo by Austin Distel on Unsplash
Let's now take a look at the 10 most profitable cryptocurrency stocks.
Our Methodology
For our shortlisting, we looked at all the major cryptocurrency companies in the world by market capitalization and revenue. Following that, we looked at the net income for the trailing twelve months for all these companies, and the top ten companies were selected. They are ranked on the basis of this income, from the lowest to the highest net income (TTM). We have also used Insider Monkey's hedge fund data for the fourth quarter, when we tracked 943 hedge funds, to demonstrate the popularity of these stocks among elite funds.
10 Most Profitable Cryptocurrency Stocks
10. Coinbase Global Inc (NASDAQ:COIN)
Trailing Twelve Months Net Income: -$2.6 billion
Number of Hedge Fund Holders: 27
Coinbase Global Inc (NASDAQ:COIN) is a financial exchanges and data company based in Wilmington, Delaware. The company provides financial infrastructure and technology for the American and international crypto-economy.
Oppenheimer's Owen Lau holds an Outperform rating and an $84 price target on Coinbase Global Inc (NASDAQ:COIN) shares as of February 22.
Being one of the largest pure-play crypto companies today, Coinbase Global Inc (NASDAQ:COIN) holds about $153 million in Bitcoin as of this March, according to CoinGecko. The company has significantly suffered from the recent crypto winter, but it is still one of Wall Street's favorite crypto stocks today. The average analyst price target on Coinbase Global Inc (NASDAQ:COIN) shares as of March 4 is $59.10, with a high forecast of $100. This shows the potential of the company as the crypto-economy continues to be on the mend.
Coinbase Global Inc (NASDAQ:COIN) was found among the 13F holdings of 27 hedge funds in the fourth quarter. Their total stake value was $575 million. ARK Investment Management was the largest shareholder in the company, holding 9.2 million shares.
Coinbase Global Inc (NASDAQ:COIN), like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) is a company set to revolutionize the digital currency sector.
9. MicroStrategy Incorporated (NASDAQ:MSTR)
Trailing Twelve Months Net Income: -$1.5 billion
Number of Hedge Fund Holders: 18
MicroStrategy Incorporated (NASDAQ:MSTR) is an application software company based in Tysons Corner, Virginia. It owns the largest amount of Bitcoin on its balance sheet, valuing up to $2.2 billion as of this March.
Joseph Vafi at Canaccord holds a Buy rating on MicroStrategy Incorporated (NASDAQ:MSTR) shares as of February 3. The analyst also raised his price target on the stock from $372 to $400.
The co-founder of MicroStrategy Incorporated (NASDAQ:MSTR), Michael Saylor, is among the most bullish Bitcoin investors today. As a result, the company has added to its Bitcoin stake through 2022, ensuring that when the cryptocurrency shoots back up, MicroStrategy Incorporated (NASDAQ:MSTR) will be among the biggest benefactors of the rise. Analysts have an average price target of $255 on the stock, and foresee a 3.28% upside on the company's shares.
Our hedge fund data for the fourth quarter shows 18 funds long MicroStrategy Incorporated (NASDAQ:MSTR), with a total stake value of $49.6 million.
Investment management company Bireme Capital mentioned MicroStrategy Incorporated (NASDAQ:MSTR) in its second-quarter 2022 investor letter. Here's what the firm said:
“We also remain short MicroStrategy, a middling business analytics software company that turned itself into a gigantic levered bet on Bitcoin at the height of the hype cycle – losing over a billion dollars in the process. Now, the company will need all the cash flow from the business just to pay off the interest payments on the enormous debt load, leaving no earnings for equity holders. Despite shares down over 60% for the year, the company continues to trade at a material premium to the value of its assets. For more detail on our thesis, please see our blog post here, as well as the Forbes and Fortune write-ups that feature our short position.”
8. Block, Inc. (NYSE:SQ)
Trailing Twelve Months Net Income: -$540.7 million
Number of Hedge Fund Holders: 70
Block, Inc. (NYSE:SQ) is a data processing and outsourced services company based in San Francisco, California. It is heavily involved in the crypto sector, operating an online digital and mobile payment platform for consumers and merchants.
Baird analyst Daving Koning reiterated an Outperform rating and $92 price target on Block, Inc. (NYSE:SQ) shares on March 1.
In the third quarter, Block, Inc. (NYSE:SQ) had about $1.76 billion in Bitcoin revenue in its Cash App unit. The company itself is also heavily invested in this cryptocurrency, holding about $136 million in Bitcoin as of this March. Analysts are highly bullish on the stock's potential as the crypto winter thaws, holding an average price target on Block, Inc. (NYSE:SQ) of $97.35. Wall Street foresees an upside potential of 20.36% on the company's shares as of March 4.
There were 70 hedge funds long Block, Inc. (NYSE:SQ) in the fourth quarter. Their total stake value was $4.3 billion. ARK Investment Management was the largest shareholder in this company as well, holding over 9 million shares.
7. Riot Platforms, Inc. (NASDAQ:RIOT)
Trailing Twelve Months Net Income: -$373.2 million
Number of Hedge Fund Holders: 12
Riot Platforms, Inc. (NASDAQ:RIOT) is an application software company based in Castle Rock, Colorado. The company is engaged in bitcoin mining operations in North America.
On February 21, Needham's John Todaro initiated coverage of Riot Platforms, Inc. (NASDAQ:RIOT) shares with a Buy rating.
Wall Street analysts see an upside potential of 51.42% on Riot Platforms, Inc. (NASDAQ:RIOT) shares as of March 4. The average price target on the stock is $9.6, with a high forecast of $12. The company can profit immensely from the recovery of Bitcoin, as it holds about 6,897 BTC holdings as of this January, which translated to about $117 million in liquidity at the time. Analysts thus see Riot Platforms, Inc. (NASDAQ:RIOT) outperforming to the upside because of its heavy investing in Bitcoin.
Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 12 hedge funds were long Riot Platforms, Inc. (NASDAQ:RIOT), with a total stake value of $9.7 million.
6. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Trailing Twelve Months Net Income: -$268.5 million
Number of Hedge Fund Holders: 14
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a digital asset company based in Las Vegas, Nevada. The company focuses on the blockchain ecosystem and the generation of digital assets in the US.
A Buy rating was reiterated on Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares on January 12 by analyst Christopher Brendler at DA Davidson.
As of the third quarter, Marathon Digital Holdings, Inc. (NASDAQ:MARA) had about 69,000 active miners of Bitcoin. It holds about 10,054 Bitcoins as of this March, worth $171 million. The company has reported that mining a single Bitcoin costs about $6,200, which represents the potential profitability of Marathon Digital Holdings, Inc.'s (NASDAQ:MARA) business.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) had 14 hedge funds long its stock in the fourth quarter. Their total stake value was $7.4 million.
Horizon Kinetics LLC, an independently owned and operated investment adviser, mentioned Marathon Digital Holdings, Inc. (NASDAQ:MARA) in its first-quarter 2022 investor letter. Here's what the firm said:
“Investors also tend to not give sufficient credit to the power of management to enhance or create additional value with such an asset. The commercialization of land requires considerable management expertise. This particular transaction involves two other parties that will build and operate up to 60 megawatts of bitcoin mining, which was stated could accommodate up to 2.0 Exahash of operational capacity. That is quite sizable. As a reference point, Marathon Digital Holdings (NASDAQ:MARA), which has a $1.0 billion stock market value, even after a year-to-date decline of 70%, had about 3.6 EH/s of capacity at year-end 2021, though it expects to reach 13.3 EH/s during this calendar year. The TPL venture is expected to begin operations in the fourth quarter of this year.”
Marathon Digital Holdings, Inc. (NASDAQ:MARA), like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) is trying to capitalize on the potential of cryptocurrency.
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Disclosure: None. 10 Most Profitable Cryptocurrency Stocks is originally published on Insider Monkey.
