In this article, we will take a look at the 10 best bitcoin stocks to buy now. You can skip our comprehensive analysis of the current bitcoin industry trends and go directly to 5 Best Bitcoin Stocks to Buy Now.
Bitcoin is gaining momentum as the global economy recovers due to increasing consumer market demand. The world's largest digital currency by market value soared to more than $64,000 on April 14 before plummeting to around $48,000 in the fourth week of the month. However, bitcoin's price bounced back from the downturn, and it appears that the crypto's market framework has remained unchanged, at least for the time being, with Bitcoin trading at above $58,000 as of May 3.
Bitcoin's price has already doubled since the beginning of the year, as mainstream investors have flocked to cryptocurrencies. As of the end of March, American EV behemoth Tesla, Inc. (NASDAQ: TSLA) had approximately $2.5 billion worth of bitcoin. Wall Street titans like The Goldman Sachs Group, Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) seek to roll out bitcoin investment products to their high-net-worth clients. JPMorgan Chase & Co. (NYSE: JPM) plans to deliver an actively managed bitcoin fund to a select group of investors, which may happen as early as this summer.
Should You Invest in Bitcoin Stocks?
Bitcoin has gained momentum to challenge gold as a store-of-value investment because, like gold, it is a shield against currency depreciation and uncertainty. Investing in bitcoin stocks is a brilliant idea if you want to gain direct exposure to the digital currency market and the projects or businesses that operate their business with Bitcoin. Bitcoin investing is becoming more popular, with companies like PayPal Holdings, Inc. (NASDAQ: PYPL) and Square, Inc. (NYSE: SQ) providing crypto trading services, and Mastercard Incorporated (NYSE: MA) becoming the first credit card to deliver digital currency "rewards" on transactions.
When companies like PayPal Holdings, Inc. (NASDAQ: PYPL), Tesla, Inc. (NASDAQ: TSLA) and Square, Inc. (NYSE: SQ) throw their weight behind cryptocurrency, the entire world pays attention, boosting the trust in bitcoin, ETH and other cryptocurrencies and platforms. This trend has forced conventional banks, hedge fund, investment companies like Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE: JPM) to give their clients options to invest in cryptocurrencies as an asset class.
Aside from investing in cryptocurrencies like Bitcoin, there are other ways to benefit from blockchain technology. Investing in the stocks of companies that are quickly implementing blockchain technology is a great idea. Investing in bitcoin futures markets and bitcoin mining companies, and bitcoin mining hardware manufacturers like NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) is another excellent way to benefit from the development of digital asset trading.
California-based tech firm NVIDIA Corporation (NASDAQ: NVDA) made its most profitable invention of the graphic processing unit in 1999. Today, the company plays a vital role in the integration of modern AI and GPU machine learning. The GPU giant produces GeForce GPUs for graphics-heavy games and bitcoin mining. The company also offers game streaming services through GeForce NOW. NVIDIA Corporation (NASDAQ: NVDA) had forecast $5.30 billion in sales for its first fiscal year, which ended on May 2. The company raised its sales forecast for its latest Crypto Mining Processor series from $50 million to $150 million in February.
Bitcoin and other cryptocurrencies are the harbingers of the broader changes taking place in the financial landscape, which are also shaking the conventional giants to their core. The entire hedge fund industry is feeling the reverberations of the changing financial dynamics. Its reputation has been tarnished in the last decade, during which its hedged returns couldn't keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let's discuss our list of the 10 best bitcoin stocks to buy now.
We start our list of the 10 best bitcoin stocks to buy now with a Chinese gaming company and crypto cloud miner The9 Limited (NASDAQ: NCTY). The Shanghai-based video game developer, formerly known as GameNow.net, is the creator of mobile game hits like "CrossFire New Mobile Game." In February, the gaming company purchased a 70% stake in Interhash, a cryptocurrency cloud mining blockchain Software-as-a-Service ("SaaS") company. Furthermore, The9 Limited invested $3.2 million in Canadian blockchain infrastructure firm Skychain Technologies Inc. (TSXV: SCT.V) in April for the development and operation of a 12-megawatt cryptocurrency mining facility in Manitoba, Canada.
The company has a market cap of $373 million. Shares of The9 Limited (NASDAQ: NCTY) climbed 331% over the past twelve months. There was 1 hedge fund that reported owning stakes in The9 Limitedat the end of the fourth quarter. The total value of these stakes at the end of Q4 is $133,000.
9. Bit Digital, Inc. (NASDAQ: BTBT)
Number of Hedge Fund Holders: 1
Ranking 9th on the list of best bitcoin stocks to buy now is bitcoin mining company Bit Digital, Inc. (NASDAQ: BTBT). The New York-based bitcoin mining company, formerly known as Golden Bull Limited, started bitcoin mining in early 2020 and now has a cumulative hash rate of 2,574 PH/S across the entire Bitcoin network, making it one of the largest bitcoin mining companies listed on the NASDAQ. In the first quarter of 2021, Bit Digital, Inc. received 1,013.40 bitcoins and owned 40,965 miners.
The company has a market cap of $642.7 million. The company's Bitcoin mining revenue in full-year 2020 came in at $21.07 million. Shares of BTBT surged 798.6% over the past twelve months.
There was 1 hedge fund that reported owning stakes in Bit Digital, Inc. (NASDAQ: BTBT) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $823,000.
Bitcoin mining hardware manufacturer Canaan Inc. (NASDAQ: CAN) ranks 8th in our 10 best bitcoin stock list to buy now. Hangzhou-based Canaan Inc. builds supercomputing chips and blockchain computer systems. In April, Canaan Inc. supplied 11,760 high-performing bitcoin mining machines to Mawson Infrastructure Group Inc. (OTC: WIZP).
The company has a market cap of $1.98 billion. The company's revenue in 2020 came in at $68.6 million. The company expects net sales of at least $61.8 million (400 million yuan) in the first quarter. Shares of CAN climbed 172% over the past twelve months. Like NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD), Canaan is also set to gain from the bitcoin mining boom in the world.
There were 4 hedge funds that reported owning stakes in Canaan Inc. (NASDAQ: CAN) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $3.84 million.
Ranking 7th in our list of 10 best bitcoin stocks to buy now is energy software firm and bitcoin miner CleanSpark, Inc. (NASDAQ: CLSK). The Utah-based software company offers advanced energy software and control technology to be used as a plug-and-play business solution to help communities become more self-sufficient, safe, and efficient. The company also manages and controls a fleet of Bitcoin miners with a mining capacity of over 200 PH/s. CleanSpark, Inc. purchased 22,680 additional bitcoin miners in April, which would bring its total mining capacity to around 3.2 EH/s.
The company has a market cap of $729.7 million and a revenue of over $10 million in 2020. New York-based capital market firm BTIG initiates coverage of CleanSpark, Inc. with a Buy rating and a price target of $45 in March. Shares of CleanSpark, Inc. (NASDAQ: CLSK) surged 1,484.56% over the past twelve months.
CLSK, though not very famous like PayPal Holdings, Inc. (NASDAQ: PYPL), Tesla, Inc. (NASDAQ: TSLA) and Square, Inc. (NYSE: SQ), remains one of the best crypto plays for the future.
There were 4 hedge funds that reported owning stakes in CleanSpark, Inc.at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $7.71 million.
American bitcoin mining company Riot Blockchain, Inc. (NASDAQ: RIOT) ranks 6th in our list of 10 best bitcoin stocks to buy now. Formerly known as Bioptix, Inc., the company was founded in 2000 and is based in Castle Rock, Colorado. Riot Blockchain, Inc. reported in April that it had signed a formal deal to purchase Whinstone US, Inc., the largest bitcoin mining facility in the United States, for $651 million. Riot Blockchain, Inc. continues to expand its business as it closed a $138.5 million deal with Bitmain Technologies, to buy 42,000 mining machines. Riot is often counted among the notable crypto names like NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD).
Riot Blockchain, Inc. (NASDAQ: RIOT) has a market cap of $3.52 billion. The company's revenue in 2020 came in at $12.08 million, up 76.7% from the previous year. On April 1, H.C. Wainwright analysts maintained their Buy rating on Riot Blockchain, Inc., with a $64 price target. The stock has gained 3,809.35% in the last twelve months.
There were 7 hedge funds that reported owning stakes in Riot Blockchain, Inc. (NASDAQ: RIOT) at the end of the fourth quarter, up from 4 funds a quarter earlier. The total value of these stakes at the end of Q4 is $5.12 million.
