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In this article, we discuss the 11 best Bitcoin stocks to buy now. If you want to skip our detailed analysis of the crypto industry and outlook for future growth, go directly to 5 best Bitcoin stocks to buy now.
In November 2021 Bitcoin’s value reached an all-time high, $68,990 before closing at $64,995. However, due to rising inflation and pressure from macroeconomic forces, Bitcoin fell to $46,164 in mid of December 2021. Between January and May 2022, the digital currency continued to fluctuate with closing prices only reaching as high as $47,445 by the end of March before falling to $28,405 on May 11. On 13 June 2022, Bitcoin’s price plummeted to below $23,000 for the first time since Dec 2021. Today, bitcoin is trading around $18700 and it doesn't look like its price is going to bottom until the Fed is done with increasing short term interest rates.
According to global investment banking giant JP Morgan, the long-term price of Bitcoin may reach up to $150000 which is almost six times higher than the current price of Bitcoin. The global cryptocurrency mining market size currently stands at $915.8 million and is forecasted to reach $1125.8 million by 2028. All of these numbers are just estimates and guesses though. Nobody really knows the true intrinsic value of a Bitcoin because it doesn't generate any cash flow and its price is determined by the overall sentiment of the investing public. One reason to be optimistic about bitcoin and a few of the other cryptocurrencies is that it is now almost certain that cryptocurrencies will be widely used in the future and the demand for cryptocurrencies will probably be much higher than it is today. Higher demand and utilization usually mean higher prices.
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Methodology
So, how do we come up with our list of the best bitcoin stocks to buy? We picked the most popular Bitcoin stocks among the 900 elite hedge funds tracked by Insider Monkey as of the end of the first quarter. This is before the beginning of significant declines in stock prices and help us identify the stocks before some marginal hedge funds are forced to close their speculative positions due to investor redemptions. We will be publishing an updated version of this list in a couple of weeks when hedge funds reveal their end-of-September holdings. Here are the best bitcoin stocks to buy according to hedge funds:
11. Hut 8 Mining Corp (TSX:HUT)
Number of Hedge Fund Holders: 7
Hut 8 Mining Corp (TSX:HUT) is one of the oldest and largest digital asset miners in North America. The Toronto-based organization specializes in Bitcoin and Ethereum mining.
Recently, investment banking company Stifel resumed coverage of Hut 8 Mining Corp (TSX:HUT) with a 'Buy' rating and an $11 price target. Moreover, on May 13, Canaccord analyst Joseph Vafi maintained 'Buy' rating on the shares of Hut 8 Mining Corp (TSX:HUT) and gave it a price target of $6.
According to the database of Insider Monkey 7 hedge funds held stakes worth $7.9 billion in Hut 8 Mining Corp (TSX:HUT) at the end of the first quarter of 2022.
10. Riot Blockchain, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 14
Riot Blockchain, Inc. (NASDAQ:RIOT) is a Bitcoin mining company supporting the Bitcoin blockchain through industrial-scale mining in the United States. The company's facility in Rockdale, Texas, is the largest Bitcoin mining and hosting facility in North America. According to the Twitter handle of the company, it produced 318 Bitcoins in July 2022.
After analyzing the global hash rate forecasts and estimates for the crypto miners on June 28, Compass Point analyst Chase White upgraded Riot Blockchain to 'Buy' from 'Neutral' with a price target of $14. Moreover, B. Riley analyst Lucas Pipes maintained a 'Buy' rating on Riot Blockchain, Inc. (NASDAQ:RIOT) with a $16 price target.
According to the database of Insider Monkey 14 hedge funds held stakes worth $28.6 million in Riot Blockchain, Inc. (NASDAQ:RIOT) at the end of the first quarter of 2022.
9. MicroStrategy Inc. (NASDAQ:MSTR)
Number of Hedge Fund Holders: 14
MSTR ranks 9th on our list of the best bitcoin stocks to buy. MicroStrategy Inc. (NASDAQ:MSTR) is an analytics software company that provides business intelligence and cloud-based services. The organization started buying Bitcoins in 2020 and since then it has built up vast reserves of this valuable cryptocurrency. As of May 2022, MicroStrategy Inc. (NASDAQ:MSTR) owned roughly 129,218 Bitcoins.
On August 3, Canaccord analyst Joseph Vafi lowered the firm's price target on MicroStrategy to $372 from $453 but maintained the 'Buy' rating on the shares of MicroStrategy Inc. (NASDAQ:MSTR) and asserted that the organization does not face any risk of solvency.
According to the database of Insider Monkey, 14 hedge funds held stakes worth $85.1 million in MicroStrategy Inc. (NASDAQ:MSTR) at the end of the first quarter of 2022.
8. Silvergate Capital Corp (NYSE:SI)
Number of Hedge Fund Holders: 35
Silvergate Capital Corp (NYSE:SI) provides banking and other financial services to businesses working in the cryptocurrency space. Among its offerings is a digital network that helps big clients such as crypto exchanges, cryptocurrency miners, and institutional investors, including private equity firms carry out transactions.
On July 20, Wells Fargo analyst Jared Shaw maintained an 'Overweight' rating on the shares of Silvergate Capital Corp (NYSE:SI) and raised the price target of his firm on Silvergate Capital Corp (NYSE:SI) to $115 from $100. Moreover, on August 4, investment banking firm BTIG started coverage of Silvergate Capital Corp (NYSE:SI) and gave it a 'Buy' rating.
According to the database of Insider Monkey 35 hedge funds held stakes worth $838.6 million in Silvergate Capital Corp (NYSE:SI) at the end of the first quarter of 2022.
7. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 43
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is currently one of the leading digital asset technology companies in the United States. The Las Vegas based company engages in mining cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
On July 18, Marathon Digital Holdings, Inc. (NASDAQ:MARA) announced that it has secured around 254 Megawatts of new hosting arrangements for the company's Bitcoin mining operations. As a result of this development, Marathon Digital Holdings, Inc. (NASDAQ:MARA) has now secured sufficient hosting arrangements to support its previously stated target of approximately 23.3 cryptographic exahashes per second of computing power for Bitcoin mining.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) produced 707 self-mined Bitcoin during the second quarter of 2022, an 8% increase from 654 bitcoin mined during the same period in 2021.
On March 8, Compass Point analyst Chase White raised his firm's price target on Marathon Digital Holdings, Inc. (NASDAQ:MARA) to $66 from $48 and maintained a Buy rating on its shares.
6. Coinbase Global, Inc (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc (NASDAQ:COIN) is one of the leading cryptocurrency exchanges, with nearly 98 million verified users. The crypto trading platform allows users to buy and sell cryptocurrencies, including Bitcoin, Ethereum, Solana, Cardano, and over 200 other coins. Additionally, the company offers blockchain analytics to governments, crypto businesses, and financial institutions. Coinbase Global, Inc (NASDAQ:COIN) registered EPS surprise in all four quarters of 2021.
On July 14, DA Davidson analyst Christopher Brendler told investors that the 2022 "crypto winter" will ultimately prove advantageous for Coinbase Global, Inc (NASDAQ:COIN) and maintained a 'Buy' rating on the shares of the organization. Similarly, on July 12, JMP Securities analyst Devin Ryan maintained an 'Outperform' rating on the shares of Coinbase Global, Inc (NASDAQ:COIN).
Similarly, several other Bitcoin stocks including MicroStrategy Inc. (NASDAQ:MSTR), PayPal Holdings (NASDAQ:PYPL), Block, Inc. (NYSE:SQ) and Marathon Digital Holdings, Inc. (NASDAQ:MARA) have got positive ratings from different analysts in the last couple of weeks.
According to the database of Insider Monkey 46 hedge funds held stakes worth $2.32 billion in Coinbase Global, Inc (NASDAQ:COIN) at the end of the first quarter of 2022.
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Disclosure: None. Best Bitcoin Stocks To Buy is originally published on Insider Monkey.
