With the rise of cryptocurrencies, companies stand to witness a surge in revenue and expansion in EBITDA margins
After a large gathering, Bitcoin (BTC-USD) appears to be in the integration zone. With the halving scheduled for this month, we can expect another big rally that could see Bitcoin surpass six-digit levels. Direct access to Bitcoin and high-quality altcoins can bring you multi-bagger profits in the current bull market. At the same time, investors can consider proxy exposure to the world of cryptocurrencies through selected stocks.
In addition to the halving event, 2024 brings new momentum for cryptocurrencies. It is likely that accommodative monetary policy (interest rate cuts) will be promoted in the second half of this year. Expansionary policy is well-suited to risky asset classes, so we expect to see flows into equities, commodities, and cryptocurrencies.
Therefore, opportunities to make money quickly may be available. The stocks to buy after the Bitcoin halving are likely to earn you 50% to 100% by the end of the year. Let's explore the specific factors that make us bullish on these three.
Riot Platform (RIOT)
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riot platform (NASDAQ:riot) is a quality Bitcoin miner worth considering at the current $10.2 level. If crypto sentiment remains positive, the stock could double in the coming quarters.
The first thing to note about the Riot platform is its strong fundamentals. As of December 2023, the company reports a cash buffer of $597 million. Moreover, the value of his Bitcoin holdings was $311 million. With a zero-debt balance sheet, Riot Platforms has the financial flexibility to scale aggressively.
As of March, RIOT's deployment hash rate is 12.4EH/s. The company plans to increase its hash rate to 31.5EH/s by the end of the year. Moreover, by the end of 2025, the capacity could reach 40.8EH/s.
If this goal is achieved, Riot will see a significant increase in revenue and cash flow. Also, the long-term goal is for him to achieve a hashrate capacity of 100EH/s. Therefore, we are still in the early stages of growth.
Coinbase Global (COIN)
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After the big gathering, coinbase (NASDAQ:coin) has corrected from its recent high of $283. Although it looks expensive, there's still a strong case for solid revenue growth and rising free cash flow.
As Bitcoin is on an upward trend, trading volumes may increase rapidly. Additionally, as more altcoins join, Coinbase, as one of the largest centralized exchanges, is well-positioned to profit from trading and speculative activity.
Another thing to note is that Coinbase is working on global expansion. In the first three quarters of 2023, the company obtained licenses in Singapore and Bermuda. Additionally, we have started operations in Canada and Brazil.
In the fourth quarter of 2023, the company announced that it will be a virtual asset service provider (Vasp) Registered in France and Spain. With the entry into multiple new geographies, revenue growth in the coming quarters could be significant. High financial flexibility provides continued potential for aggressive internal growth.
Marathon Digital (MARA)
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marathon digital (NASDAQ:Mara) is another undervalued Bitcoin miner to buy before the halving event. Over the past 12 months, MARA has trended up 117%. However, given the expansion plans and Bitcoin's potential upside, we can expect at least another 100% return by the end of 2024.
Specifically, Marathon Digital reported an energized hash rate of 24.7EH/s as of Q4 2023. The company expects capacity to increase to 35EH/s by the end of this year and further increase to 50EH/s by the end of 2025. This positions MARA. We aim for healthy growth in earnings and cash flow. For 2024, Marathon Digital is aiming for a 50% increase in revenue. We believe this is related to a significant expansion in EBITDA margins.
Notably, the company had a cash buffer of $425.6 million as of February. Furthermore, Marathon Digital reported that the value of its Bitcoin holdings is $1 billion. This provides sufficient flexibility for expansion activities over the next 24 months.
On the date of publication, Faisal Humayun 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 writer and are influenced by InvestorPlace.com. Publication guidelines.
