The cryptocurrency market is enjoying bullish trends, including: Bitcoin (BTC-USD), boosted by US regulatory changes In this article, we look at crypto stocks to buy as these companies continue to benefit from rising Bitcoin prices.
In addition, the UK Financial Conduct Authority (FCA), reflecting the U.S. Securities and Exchange Commission (SEC), announced tolerance for trading in Bitcoin and Ethereum-based listed bonds in the country.
Bitcoin's ongoing rally is largely driven by the SEC's recent approval of 11 spot Bitcoin ETFs, which opens new avenues for institutional Bitcoin investing and Now you can trade at current spot prices instead of the futures-based ETFs that were available.
This move caused the price of Bitcoin to rise significantly, and BlackRock's iShares Bitcoin ETF (NASDAQ:ibit) Bought $778 million worth of BTC on March 6th. This illustrates the potential impact of institutional involvement on the value and supply dynamics of cryptocurrencies.
“Risk appetite has also skyrocketed in recent weeks, with tech stocks fueling FOMO.” [fear of missing out] I think the market is pushing Bitcoin away,” said James Knightley, chief international economist at banking group ING.
Let's take a look at three promising crypto stocks to buy in 2024.
Microstrategy (MSTR)
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micro strategy (NASDAQ:MSTR) has made a big bet on Bitcoin, establishing itself as a major corporate investor in cryptocurrencies. By acquiring billions of dollars worth of Bitcoin as part of its treasury assets, MSTR leverages digital currency's long-term value appreciation potential and boldly asserts Bitcoin's viability as an investment asset We aim to do so.
Most recently, MicroStrategy raised $782 million through a debt sale to acquire more cryptocurrencies, further solidifying its position as a prominent Bitcoin investor. Michael Saylor, the company's founder and the man behind this Bitcoin bet, said his company's Bitcoin holdings had reached 214,245 coins, valued at 150,000 coins, during the cryptocurrency's record rally. announced that it had reached more than $1 billion.
The company's recent purchase of 12,000 Bitcoins for approximately $822 million was funded by convertible debt and excess cash. This strategic investment had a significant impact on MicroStrategy stock, which saw a notable rally following the announcement, highlighting the company's close connection to Bitcoin market performance.
MicroStrategy stock also experienced a significant rally as Bitcoin rose above $73,400, posting a 68% gain since the bond sale announcement and a 180% gain this year, building on a 346% surge in 2023. was recorded. MSTR stock is mostly up. 150% in 2024 alone, making MicroStrategy one of the top crypto stocks to buy in case Bitcoin prices fall back from their all-time highs.
Riot Platform (RIOT)
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riot platform (NASDAQ:riot) is a leading cryptocurrency mining company focused on building, supporting, and operating blockchain technology. Riot is primarily focused on Bitcoin mining and is committed to generating strong shareholder returns through mining operations and infrastructure investments.
The company's stock price has skyrocketed recently due to the influence of a major investment company. JP Morgan (New York Stock Exchange:J.P.M.) upgraded its rating to 'overweight', suggesting that RIOT is likely to outperform the market over the next 12 months. A 15% price target implies an upside of nearly 40% from the most recent closing price.
JPMorgan's move comes amid expectations that the company will significantly increase hashrate, a key performance indicator for cryptocurrency mining. Riot Platforms plans to increase its hash rate by 9 EH/s soon, and another 10 EH/s in the second half of 2024, aiming for a total of 31.5 EH/s by the end of the year.
Riot has a strong financial position with approximately $600 million in cash and $470 million in Bitcoin. With continued expansion, including the activation of nearly 20 EH/s at the new Corsicana facility, Riot is poised to increase mining efficiency and economics and differentiate itself from its competitors.
Marathon Digital (MARA)
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marathon digital (NASDAQ:Mara), like Riot Platforms, is a leading cryptocurrency mining company focused on blockchain ecosystems and digital asset generation. The company operates one of the largest Bitcoin mining operations in North America and aims to harness the potential of blockchain technology to generate digital currency and secure blockchain transactions.
Marathon Digital's stock price has also skyrocketed in recent months, helped by rising Bitcoin prices. The company's latest financial report showed the swing in profits for the latest quarter.
MARA reported net income of $151.8 million, a significant improvement from the prior year's net loss of $391.6 million, primarily due to impairment charges. Quarterly sales reached $156.8 million, exceeding analyst expectations.
Marathon Digital said it succeeded in significantly expanding its Bitcoin mining operations in 2023, increasing its hash rate by 253% to 24.7 exahashes, leading to the production of a record 12,852 Bitcoins. The company produced 4,242 Bitcoins in the fourth quarter, exceeding the previous year's total production.
On the date of publication, Shane Neagle did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
