In this article, we discuss the best bitcoin stocks to invest in. If you want to skip our discussion on the bitcoin industry, head directly to 5 Best Bitcoin Stocks To Invest In.
In November this year, bitcoin reached new highs and other top cryptocurrencies also experienced gains. The spike in cryptocurrency investments is attributed to the expectation of the U.S. Securities and Exchange Commission (SEC) potentially approving the first spot cryptocurrency exchange-traded fund (ETF) on a major U.S. exchange. At the same time, global regulators including the SEC are actively cracking down on digital assets, targeting crypto exchanges and high-profile executives such as Sam Bankman-Fried of FTX and Changpeng Zhao of Binance. However, with the historic settlement imposed by the U.S. Department of Justice on Binance, the cryptocurrency industry can potentially bring an end to a series of scandals and issues, according to Brian Armstrong, the CEO of Coinbase Global, Inc. (NASDAQ:COIN). Armstrong commented during an interview with CNBC’s Joumanna Bercetche:
“The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history. There are many crypto companies that are helping build the crypto economy and change our financial system globally. But many of them are still small startups. I think that regulatory clarity is going to help bring in more investment, especially from institutions."
Experts in the cryptocurrency space predict a new bullish phase, as an increasing number of individuals express expectations for bitcoin to reach record levels in 2024, surpassing $100,000. Bitcoin has experienced a surge of over 120% in 2023, leading to widespread optimism that this momentum will persist into 2024. Pascal Gauthier, CEO of Ledger, told CNBC recently:
“It feels that [2023] was a year to get ready for the bull run that is yet to come. But the sentiment is very hopeful for [2024] and 25.”
Similarly, Vijay Ayyar, who serves as the vice president of international markets at the cryptocurrency exchange CoinDCX, shared with CNBC:
“A number of market participants are expecting a bull run some time after the halving, but given the ETF news, we could very well have a run before that leaving most investors on the sidelines. That could cause a massive upward run in the price.”
On another positive note, Robinhood Markets, Inc. (NASDAQ:HOOD) is expanding its cryptocurrency trading feature to the European Union, aiming to tap into international markets for growth. The new crypto product enables customers to trade over 25 tokens, including popular ones like bitcoin, ether, ripple, cardano, solana, and polkadot. Robinhood plans to add more tokens and introduce features such as transfer and "staking" for earning crypto rewards in 2024. This move follows the company's recent announcement about launching stock trades for U.K. customers by early 2024, with a waitlist already open and promising yields of up to 5% on deposits.
At the end of October 2023, Bernstein analyst Gautam Chhugani expressed optimism about a bitcoin exchange-traded fund and said that the price of bitcoin could consequently reach $150,000 by 2025. The positive projection is approximately five times the present price and over twice the previous all-time high for bitcoin in November 2021. Chhugani also expects that the approval of the ETF would result in the allocation of up to 10% of bitcoin's circulating supply to ETFs. This approval would enable traditional investors to gain direct exposure to bitcoin through their investment portfolios.
Nevertheless, there are still individuals who heavily criticize cryptocurrencies. For example, JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon on December 6 strongly criticized bitcoin and other cryptocurrencies, stating during a Senate Banking Committee hearing that he has always been vehemently against crypto. Dimon expressed the view that cryptocurrencies should be banned, emphasizing concerns about their primary utility being linked to criminal activities such as money laundering, tax evasion, and drug trafficking. Despite his stance against cryptocurrencies, it's noteworthy that JPMorgan is actively engaged in blockchain, the underlying technology supporting the $1.6 trillion crypto industry.
Some of the best crypto stocks include CME Group Inc. (NASDAQ:CME), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ). However, we specifically focus on bitcoin stocks in this article.
Our Methodology
We chose the top bitcoin stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the third quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm.
Bit Digital, Inc. (NASDAQ:BTBT) is active in the bitcoin mining sector, involved in treasury management tasks, digital asset staking and mining operations, and ethereum staking. Established in 2015, Bit Digital, Inc. (NASDAQ:BTBT)’s headquarters are located in New York. In November 2023, Bit Digital, Inc. (NASDAQ:BTBT) produced 142.7 BTC, marking a 24% increase compared to October. As of November 30, 2023, the active hash rate stood at approximately 2.25 EH/s. The company held 551.8 BTC and 16,064.8 ETH in its treasury, with a fair market value of around $20.8 million and $33 million, respectively, on November 30.
According to Insider Monkey’s third quarter database, 4 hedge funds were bullish on Bit Digital, Inc. (NASDAQ:BTBT), same as the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent stakeholder of the company, with 68,300 shares worth $146,162.
Like CME Group Inc. (NASDAQ:CME), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ), Bit Digital, Inc. (NASDAQ:BTBT) is one of the best stocks in the crypto space.
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is a cryptocurrency mining firm with operations in Canada, Sweden, and Iceland. The company is involved in both the mining and trading of digital currencies, such as Ethereum Classic, Bitcoin, and other coins. HIVE Digital Technologies Ltd. (NASDAQ:HIVE) also manages data centers and provides infrastructure solutions. The company was established in 1987 and its headquarters are situated in Vancouver, Canada. It is one of the best bitcoin stocks to invest in.
In November 2023, HIVE Digital Technologies Ltd. (NASDAQ:HIVE) reported the production of 276.3 BTC through a combination of ASIC and GPU mining operations, achieving an average of 66.7 Bitcoin per Exahash. The daily average production for November 2023 was 9.2 BTC. HIVE Digital Technologies Ltd. (NASDAQ:HIVE) maintained an average monthly hashrate of 4.14 EH/s during November, indicating a 5.2% increase compared to the October average of 3.94 EH/s.
According to Insider Monkey’s third quarter database, 5 hedge funds were long HIVE Digital Technologies Ltd. (NASDAQ:HIVE), compared to 4 funds in the last quarter.
Bitfarms Ltd. (NASDAQ:BITF) specializes in cryptocurrency coin and token mining operations across Canada, the United States, Paraguay, and Argentina. The company owns and manages server farms dedicated to validating transactions on the Bitcoin Blockchain, thereby earning cryptocurrency through block rewards and transaction fees. The company is headquartered in Toronto, Canada and was established in 2017. Bitfarms Ltd. (NASDAQ:BITF) is one of the best bitcoin stocks to monitor.
In November 2023, Bitfarms Ltd. (NASDAQ:BITF) reported a production of 392 BTC, a 1.5% decrease from October, attributed to a 19.0% increase in network difficulty. The hash rate reached 6.4 EH/s as of November 30, 2023, marking a 45% rise from the same date in 2022 and a 1.6% increase from October 31, 2023. Bitfarms Ltd. (NASDAQ:BITF) has placed an order for 35,888 high-performance Bitmain T21 miners, scheduled for delivery between March and May 2024. Additionally, Bitfarms Ltd. (NASDAQ:BITF) secured an option to acquire an extra 28,000 T21 miners.
According to Insider Monkey’s third quarter database, 5 hedge funds were bullish on Bitfarms Ltd. (NASDAQ:BITF), compared to 6 funds in the last quarter. Israel Englander’s Millennium Management is the biggest stakeholder of the company, with 1.9 million shares worth $2 million.
TeraWulf Inc. (NASDAQ:WULF) is a digital asset technology company in the United States. The company is involved in the development, ownership, and operation of bitcoin mining facility sites located in New York and Pennsylvania. It is one of the top bitcoin stocks to monitor.
On December 4, TeraWulf Inc. (NASDAQ:WULF) reported a November production of 323 bitcoins (BTC-USD), showing a 3% increase compared to October. The growth is primarily attributed to higher network transaction fees and a self-mining capacity with over 95% availability, operating at 5 EH/s. The value per self-mined bitcoin was $36,500.
According to Insider Monkey’s third quarter database, 7 hedge funds were long TeraWulf Inc. (NASDAQ:WULF), up from 4 funds in the preceding quarter.
Iris Energy Limited (NASDAQ:IREN) owns and operates data centers dedicated to bitcoin mining. The company was established in 2018 and is headquartered in Sydney, Australia. In November 2023, Iris Energy Limited (NASDAQ:IREN) mined 369 bitcoins, experiencing a slight decrease from the 376 mined in October. The average operating hashrate for November was 5,551 PH/s, slightly lower than the 5,571 PH/s recorded in October. The company's mining revenue for November reached $13.7 million, compared to $11.2 million in October. Additionally, the revenue per bitcoin increased to $37,155, up from $29,673 in October.
According to Insider Monkey’s third quarter database, Iris Energy Limited (NASDAQ:IREN) was part of 8 hedge fund portfolios, the same as the prior quarter. Kerr Neilson’s Platinum Asset Management is the largest stakeholder of the company, with 2.60 million shares worth nearly $10 million.
In addition to CME Group Inc. (NASDAQ:CME), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ), Iris Energy Limited (NASDAQ:IREN) is one of the best crypto stocks to monitor.
