There are several crypto stocks that investors can take advantage of this year. My thesis is AI, and while tech stocks had some bright moments last year, this year will be one to remember. Bitcoin's (BTC-USD) historic rise.
For investors, buying these crypto stocks has several advantages over holding the coins directly. These include increased regulatory compliance, potential benefits from growing your business beyond the price of your crypto, the ability to hold it in tax-advantaged accounts, and more.
Additionally, I believe that holding crypto assets is a type of synthetic leverage that can amplify potential gains and losses. This is because the revenue and profits of many crypto companies are directly tied to the price and trading volume of cryptocurrencies. As such, their stocks tend to be highly sensitive to movements in underlying crypto assets such as Bitcoin.
The book value of crypto stocks can rise and fall depending on the overall market, and diversifying your income from other sources can potentially improve your overall return over simply holding crypto. there is.
Here are three crypto stocks that investors can take advantage of.
Riot Platform (RIOT)
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riot platform (NASDAQ:riot) is a US-based Bitcoin mining company that plans to significantly expand its mining capacity this year. This is one of my top picks for investors interested in getting a stake in a popular crypto stock.
In terms of technology and equipment, RIOT has signed multiple purchase agreements for Bitcoin miners.For your first order Micro BT The plan includes 33,280 immersed miners for the Corsicana facility, followed by a secondary order of an additional 66,560 miners and a tertiary order of 31,500 air-cooled miners for the Rockdale facility. The order was included. Once fully deployed, RIOT expects to be able to achieve a self-mining hash rate capacity of 41 EH/s.
Financially, RIOT has $908 million in cash and equivalents, including Bitcoin holdings, has no debt, and is in a strong position.
Even though the Bitcoin halving event reduced Riot's profits, heightened awareness and hype about Bitcoin has sent Riot's valuation soaring, making it one of the crypto stocks investors should consider. I think it will.
Interactive Brokers Group (IBKR)
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interactive brokers group (NASDAQ:IBKR) Enables trading across a variety of asset classes, including cryptocurrencies.
I think IBKR may be one of the slightly undervalued crypto stocks compared to other companies on the market. For example, the company reported net interest income of $730 million last quarter and a record $2.8 billion in 2023. IBKR's total assets will increase to $128 billion by the end of 2023, an increase of 12% year-on-year.
Analysts have a positive outlook on IBKR, with nine Wall Street research analysts recommending the stock as a “buy” or “strong buy.” Although IBKR is predicted to have a slight upside, I believe that once the cryptocurrency rally takes hold, we will see huge profits reported in this sector.
IBKR primarily targets wealthy traders and investors, making it a ubiquitous presence online, and its fees range from 0.12% to 0.18% of the trade amount, lower than many of its peers. It is competitive and competitive compared to other platforms. They may charge higher fees or add spreads or markups.
We expect trading activity on IBKR's platform to surge, making IBKR one of the crypto stocks to consider.
Coinbase Global (COIN)
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coinbase global (NASDAQ:coin) plays a pivotal role in the crypto market. The company's stock price has soared more than 48% since the beginning of the year following the approval of a Bitcoin ETF in the first quarter, and investors could see further gains ahead.
In the past, Seeking Alpha analysts have noted that COIN has shown a tendency to move in tandem with Bitcoin, indicating that Bitcoin's “beta” will be around 1.2x in 2023. The correlation shows that a 1% change in Bitcoin's value can have the following effects: COIN stock price changes by approximately 1.2%.
If this historical correlation holds, COIN could soar to new heights. Forecasts suggest a bullish trend for Bitcoin, with the price expected to reach nearly $80,000 by April.
If Bitcoin ends up continuing its expected historic rally, COIN could be one of the major beneficiaries due to increased revenue from transaction fees. This makes the company one of the best crypto stocks to buy.
On the date of publication, Matthew Farley did not have (directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
