雅虎香港財經 13 Top Performing Bitcoin Stocks in January
In this article, we will take a look at the 13 top performing bitcoin stocks in January. To see more such companies, go directly to 5 Top Performing Bitcoin Stocks in January.
Cryptocurrencies and tech stocks are back in action as investors grow hopeful that the Federal Reserve would slow down and eventually halt interest rate hikes this year. S&P 500 had its best January since 2019. The Nasdaq Composite also added 10% in the month. Growth stock investors also had a banner month in January. ARK Innovation ETF, headed by Cathie Wood, gained about 27% in January. The rally in the ETF was helped by big gains posted by companies like Roku, Netflix and Tesla.
ARK Invest in its latest Big Ideas 2023 report reiterated its prediction that Bitcoin price will hit $1 million by 2023. ARK Invest had mentioned the same price target for Bitcoin in its 2022 Big Ideas report. This shows that the Cathie Wood-led firm has a long-term outlook on the crypto markets which remained unchanged despite the tough market conditions and huge losses seen last year.
In the short term Cathie Wood has reportedly said at several occasions that in the next three years Bitcoin price could touch $500,000.
The latest market rally has caused a stir on social media and in investment circles. Some believe the rally is short-lived. Famous investor Michael Burry tweeted “Sell,” in his trademark mysterious style. On the other hand, Jim Cramer has said we are now in a bull market and the latest dip presents an opportunity to buy stocks.
Some analysts believe the latest rally in the crypto markets has more room to run as retail traders, who were holding back on any activity amid a broader lull in the markets, will start buying, driven by FOMO, or fear of missing out. According to a Bloomberg report, Noelle Acheson of “Crypto Is Macro Now” newsletter said that FOMO is expected to “play a role in how the market evolves from here.” The Bloomberg report also quoted researcher Kaiko who said on Twitter that average size of trades indicate that “whales” are driving the rally.
Bitcoin and crypto ETFs also had a remarkable month in January. These ETFs were languishing for a long time amid a bearish trend in the market. The Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) gained about 94% in January. Some of the notable holdings of the ETF include Bitfarms (BITF), Hut 8 Mining Corp. (NASDAQ:HUT), CleanSpark (CLSK), Riot Platforms (NASDAQ:RIOT) and others. Some of these names are mentioned in our article and we have mentioned their stock performance and latest updates around their crypto business.
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Our Methodology
For this article we first listed all the small and large companies operating in the crypto markets using stock screeners. These companies are either directly or indirectly involved in Bitcoin mining, Bitcoin trading and broader crypto trading. Some of these companies have huge investments in Bitcoin, while others provide a platform for crypto trading. From this long list of stocks we selected 13 companies whose shares posted strong gains in January. The list is ranked in ascending order of stock performance in January 2023.
13 Top Performing Bitcoin Stocks in January
13. Paypal Holdings, Inc. (NASDAQ:PYPL)
Stock Performance in January: +9%
Payments giant Paypal Holdings, Inc. (NASDAQ:PYPL) had announced major plans for crypto back in 2021 when the market was at its peak. However, Paypal Holdings, Inc. (NASDAQ:PYPL) has been quiet about the market over the past few months. Nevertheless, crypto markets welcomed the company’s decision in the summer of 2022 when the company rolled out a feature that will allow Paypal Holdings, Inc. (NASDAQ:PYPL) users to transfer cryptocurrency from their wallets to other exchanges and platforms.
Paypal Holdings, Inc. (NASDAQ:PYPL) shares gained 9% in January. Despite overall market downturn, Paypal Holdings, Inc. (NASDAQ:PYPL) is one of the most favorite stocks of hedge funds. As of the end of the third quarter of 2022, 126 hedge funds reported having stakes in Paypal Holdings, Inc. (NASDAQ:PYPL). At the end of the second quarter, 97 funds had stakes in the firm.
Here is what Wedgewood Partners has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2022 investor letter:
“PayPal detracted from performance during the quarter and for most of the year. During the most recent quarter the Company reported +14% growth in currency-adjusted total payment value (TPV) which helped drive +12% revenue growth. Management gave a cautious outlook for the holiday season as its core e-commerce addressable market continues to normalize post-Pandemic. With most of the disruptions related to eBay and also Pandemic normalization largely complete, PayPal can resume its margin expansion efforts in the new year as its payment’s platform remains highly scalable. Meanwhile, disruption in capital markets should hamper its unprofitable competitors in the payments space and allow for more opportunities related to M&A.”
12. Block, Inc. (NYSE:SQ)
Stock Performance in January: +24%
Payments company Block, Inc. (NYSE:SQ) makes it to our list of top performing Bitcoin stocks in January because the company has significant exposure to various cryptocurrencies, including Bitcoin. Block, Inc. (NYSE:SQ)'s cofounder Jack Dorsey, who also cofounded Twitter, has repeatedly outlined his bullish view on cryptocurrencies. In December 2022, it was reported that Block, Inc. (NYSE:SQ) was one of the companies that took part in a funding round for Gridless, a crypto startup that harnesses small-scale renewable energy grids in rural Africa.
A total of 75 hedge funds tracked by Insider Monkey reported having stakes in Block, Inc. (NYSE:SQ) as of the end of the third quarter of 2022. The total worth of these stakes was $3.4 billion.
11. Robinhood Markets, Inc. (NASDAQ:HOOD)
Stock Performance in January: +28%
Robinhood Markets, Inc. (NASDAQ:HOOD) makes it to our list of the top performing Bitcoin stocks in January because the investment platform for retail traders benefits whenever the crypto and overall growth stock market is in the green. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the notable crypto brokerage platforms and it allows beginners to buy, hold and trade various cryptocurrencies.
In December, Bank of America analyst Craig Siegenthaler gave bearish comments on Robinhood, citing the SEC’s proposal to overhaul the equity market structure. The analyst said that the proposal is a “net negative” for Robinhood.
As of the end of the third quarter of 2022, 24 hedge funds had stakes in Robinhood Markets, Inc. (NASDAQ:HOOD). The total value of these stakes was $740 million. The biggest stakeholder of Robinhood Markets, Inc. (NASDAQ:HOOD) was Catherine D. Wood’s ARK Investment Management, with a $332 million stake.
10. NVIDIA Corporation (NASDAQ:NVDA)
Stock Performance in January: +36%
NVIDIA Corporation (NASDAQ:NVDA) is one of the biggest beneficiaries of the crypto market rally as the company’s GPUs are heavily used in the mining of digital currencies. NVIDIA Corporation (NASDAQ:NVDA) shares gained about 36% in January. In mid-January, NVIDIA Corporation (NASDAQ:NVDA) shares gained without any specific catalyst. However, earlier in the month, the stock had slipped despite getting a positive rating from KeyBanc analyst John Vinh. Later in the month, NVIDIA Corporation (NASDAQ:NVDA) slipped amid a broader downturn in chip stocks after Intel posted weak quarterly results.
As of the end of the third quarter of 2022, 89 hedge funds reported having stakes in NVIDIA Corporation (NASDAQ:NVDA). The total value of these stakes was about $4.3 billion.
O’keefe Stevens Advisory made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2022 investor letter:
“The market and our portfolios had a challenging year as interest rates rose, and deteriorating fundamentals cut our largest position, NVIDIA Corporation (NASDAQ:NVDA), in half. Since our initial purchase in 2013, NVDA has seen its stock decline 50% one other time, back in 2018. The best-performing businesses and stocks do not go up and to the right. Mr. Market gets moody, and even one of the highest quality companies in the world is not immune. Drawdowns of this magnitude are challenging to stomach, even though the stock is up 50x in less than ten years. While we consider ourselves old school value investors, we continue to hold this fantastic company even though, optically, it does not appear cheap. Our confidence in Jensen remains, and while gaming is no longer in hyper-growth mode, the Data Center segment continues to grow. AI, Automotive, and other small but rapidly growing industries are the next leg of the story. Chris Mayer discusses the position in greater detail with commentary from our CIO, Peter O’Keefe. Click here to read the article.”
9. Tesla, Inc. (NASDAQ:TSLA)
Stock Performance in January: +60%
Tesla, Inc. (NASDAQ:TSLA) stock roared back in January and crushed skeptics and doubters. Tesla, Inc. (NASDAQ:TSLA) is added to this list of best-performing Bitcoin stocks in January 2023 because the company has significant Bitcoin investments and its chief Elon Musk has been one of the most notable crypto bulls in the market.
Latest data shows that Tesla, Inc. (NASDAQ:TSLA) kept its Bitcoin assets unchanged in the fourth quarter of 2022. Tesla, Inc. (NASDAQ:TSLA)’s digital assets’ total worth at the end of the quarter was $184 million, down from $218 million at the end of the third quarter. The decline came as Tesla, Inc. (NASDAQ:TSLA) suffered an impairment loss. Tesla, Inc. (NASDAQ:TSLA) suffered a $204 million impairment loss in 2022 on its Bitcoin holdings.
Tesla, Inc. (NASDAQ:TSLA) saw an increased interest from hedge funds in the third quarter. At the end of the quarter, 88 hedge funds reported having stakes in Tesla, Inc. (NASDAQ:TSLA), up from 73 funds in the previous quarter. The total value of these stakes was $7.4 billion.
Here is what Distillate Capital has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2022 investor letter:
“The fund’s relative outperformance occurred despite a nearly 2.5% headwind from being underweight the energy and utilities sectors where cash flow instability and leverage tend to limit our holdings domestically. By individual stock, the largest contributors to relative outperformance were unowned positions in Amazon and Tesla, Inc. (NASDAQ:TSLA) which declined around 50% and 65% during the year, respectively.”
8. Canaan Inc. (NASDAQ:CAN)
Stock Performance in January: +61%
China-based Canaan Inc. (NASDAQ:CAN) makes microprocessors used in Bitcoin mining and the company is also operating in the blockchain servers space. In November, Canaan Inc. (NASDAQ:CAN) posted its third-quarter results. Canaan Inc. (NASDAQ:CAN)’s Q3 GAAP EPADS came in at $0.05, missing estimates by $0.05. Revenue in the quarter fell 32.8% on a YoY basis to total $137.5 million. Canaan Inc. (NASDAQ:CAN) said total computing power sold in the period came in at 3.5 million Thash/s, a 37.1% decline from from 5.5 million Thash/s in the second quarter of 2022.
7. MicroStrategy Incorporated (NASDAQ:MSTR)
Stock Performance in January: +73%
Michael Saylor’s MicroStrategy Incorporated (NASDAQ:MSTR) made a strong comeback in January as the company shares gained about 73% in the period. Despite tough market conditions, Saylor has time and again reiterated that he remains bullish on Bitcoin. Latest data shows that the company, through one of its subsidiaries, bought 2,395 Bitcoins for $42.8 million between Nov. 1 and Dec. 21.
A total of 15 hedge funds tracked by Insider Monkey as of the end of the third quarter of 2022 had stakes in MicroStrategy Incorporated (NASDAQ:MSTR), compared to 18 funds having stakes in the firm at the end of the second quarter of the same year.
Here is what Bireme Capital specifically said about MicroStrategy Incorporated (NASDAQ:MSTR):
“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.”
6. Coinbase Global, Inc. (NASDAQ:COIN)
Stock Performance in January: +74%
Coinbase Global, Inc. (NASDAQ:COIN) is perhaps one of the most famous crypto exchange platforms. Coinbase Global, Inc. (NASDAQ:COIN) was one of the top performing Bitcoin stocks in January, having gained about 74% in value in the month. However, recently, investment firm Mizuho Securities gave bearish comments on Coinbase Global, Inc. (NASDAQ:COIN) and reiterated its Underperform rating.
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Disclosure: None. 13 Top Performing Bitcoin Stocks in January is originally published on Insider Monkey.
