Bitcoin (BTCUSD) prices have been on a wild ride lately, with the digital currency surging to its highest levels since May 2022 on growing hopes that the U.S. Securities and Exchange Commission (SEC) might finally give the green light to a spot Bitcoin ETF. Bitcoin has now doubled in value on a year-to-date basis, and is hovering right around $34,000 at last check.
Coinbase (COIN), which is a big player in the crypto world, seems pretty confident that this ETF is on the horizon - but shares of the online exchange have shed more than 21% in the last three months while BTC has broken out, and analysts have a tepid consensus rating of “hold” on COIN. However, with asset management heavyweights like BlackRock (BLK) getting ready to cash in on regulatory clearance for BTC-based ETFs, it's worth taking a look at some investing opportunities among cryptocurrency and blockchain stocks.
Here, we'll highlight three top-rated crypto stocks, all priced under $10 per share, that have been moving higher with BTC as the market braces for a potentially massive new wave of institutional investing dollars.
BITF: Riding the Bitcoin Wave
Bitfarms Ltd. (BITF) is a Canadian Bitcoin mining company offering analytics and engineering services. In August 2023, Bitfarms reported mining a cool 383 new bitcoins - down from August 2022, but up sequentially from July's numbers. Plus, BTC mined through the first eight months of 2023 were higher YOY.
Like most other miners, BITF is in the Bitcoin business - so when BTC prices are up, so is BITF's stock. The stock is up 162.5% YTD to trade around $1.15, and has a market cap of $243 million.
All four analysts covering BITF are giving it the green light, with three shouting "strong buy," and one rating the stock a "moderate buy." The average target price for BITF is $3.19, hinting at potential 177% upside from current levels.
CIFR: Mining for Profits in the Bitcoin Boom
Cipher Mining Inc. (CIFR), a New York-based Bitcoin miner, is outperforming broader BTC prices this year. The company has a market cap of $883 million, and CIFR currently trades right around $3.33 per share.
Since the start of 2023, CIFR's stock has rocketed by 492%, leaving BTC's 105% gain in the dust.
Plus, all seven analysts tracking CIFR rank it a strong buy overall. Five are shouting "strong buy," one's going with a "moderate buy," and one suggests a "hold."
The mean target price for CIFR is $5.00 is also interesting, given the stock's major rally already this year. That target indicates an expected upside of more than 50% from current levels, suggesting plenty more gains ahead.
RIOT: Capitalizing on the Crypto Craze
Colorado-based Riot Platforms Inc. (RIOT) might have renamed itself from Riot Blockchain, but the company's primary business is still focused on Bitcoin mining and infrastructure. So, when Bitcoin's up, RIOT's stock is on the rise too.
RIOT's got a relatively hefty market cap of $1.945 billion, and trades just below $10 per share. On a year-to-date basis, RIOT has outpaced BTC prices by gaining 193% - and Wall Street sees more upside ahead.
Out of the 8 analysts following the shares, 6 call RIOT a “strong buy,” 1 suggests a “moderate buy,” and only 1 is daring to go against the grain with a “strong sell.” The mean target price for RIOT is $16.67, which represents a healthy premium of 68.5% to current levels.
The Future of Crypto Stocks Amid Bitcoin's Breakout
In conclusion, as Bitcoin continues to flex its muscles and break out, these three buy-rated crypto stocks look intriguing. They've been riding the Bitcoin wave, and with favorable analyst ratings, they're catching the attention of investors.
But here's the kicker: the crypto market can be an extremely volatile space. CIFR has a beta of 2.50, BITF has a beta of 3.28, and RIOT's beta is 4.31 - indicating all three stocks are considerably more volatile than the S&P 500 Index ($SPX), and are best suited for those investors with a healthy risk appetite. So while the potential upside is appealing, the heightened volatility and continuing regulatory overhang are worth keeping in mind here.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
