In this article, we discuss the 10 best digital currency stocks to buy now.

Investors have started raising questions about the health of the overall crypto economy as a dramatic fall in the prices of cryptocurrencies, in the wake of rising rates and soaring inflation, batter the market. Crypto firms have been laying off staff and freezing withdrawals in a bid to limit their losses. The situation stands in stark contrast to the incredible bull market that the sector had enjoyed since the 2020 pandemic, during which the prices of the most popular coins, like Bitcoin and Ethereum, touched record highs and trade boomed, even in the meme space.

Bitcoin has so far dropped more than 60% in value year-to-date. Ethereum is down more than 66% so far this year. Along with these coins, prominent crypto stocks like NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG) are all trading lower as well. However, market experts have backed the crypto world to bounce back from this crisis. Ryan Coyne, a crypto expert at the Mizuho Group, recently told the New York Times that “growth at all costs” had turned to “profitable growth” for crypto firms. 

Crypto billionaires Tyler Winklevoss and Cameron Winklevoss, in a recent note to clients, said that the “crypto revolution is well underway and its impact will continue to be profound, but its trajectory has been anything but gradual or predictable”. The fundamentals of the industry remain solid, even though it is on a downward spiral right now. Crypto has recovered from these spirals before, and as the usage of digital coins becomes more popular, the cryptoverse looks set to rise once again.

Our Methodology

The companies that operate in the digital currencies sector were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Digital Currency Stocks To Buy Now

10. Canaan Inc. (NASDAQ:CAN)

Number of Hedge Fund Holders: 8     

Canaan Inc. (NASDAQ:CAN) engages in the research, design, and sale of integrated circuit mining equipment products. It is one of the premier digital money stocks to invest in. The company is also involved in the assembly and distribution of mining equipment and spare parts and has a strategic cooperation with Northern Data AG in the areas of artificial intelligence development, blockchain technology, and datacenter operations. 

On July 6, HC Wainwright analyst Kevin Dede initiated coverage of Canaan Inc. (NASDAQ:CAN) stock with a Buy rating and a price target of $5, noting that self-mining may bolster the company’s results starting later this year. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Polunin Capital is a leading shareholder in Canaan Inc. (NASDAQ:CAN), with 1.4 million shares worth more than $4.5 million.

Just like NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG), Canaan Inc. (NASDAQ:CAN) is one of the best digital money stocks to buy now. 

9. MicroStrategy Incorporated (NASDAQ:MSTR)

Number of Hedge Fund Holders: 18

MicroStrategy Incorporated (NASDAQ:MSTR) provides enterprise analytics software and services worldwide. It is one of the top digital money stocks to invest in. In early September, the company revealed that it had purchased 301 BTC between August 2 and September 19 for approximately $6 million. The tokens were acquired at an average price of $19,851. The firm, led by Michael Saylor, has a bitcoin stash of nearly 130,000 coins, which were acquired at a total price of $3.98 billion and an average purchase price of $30,639.

On August 3, Canaccord analyst Joseph Vafi maintained a Buy rating on MicroStrategy Incorporated (NASDAQ:MSTR) stock and lowered the price target to $372 from $453, noting the main value driver for the firm remains its BTC holdings. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in MicroStrategy Incorporated (NASDAQ:MSTR), with 578,700 shares worth more than $95 million.

8. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 25     

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform in the United States. The firm is among the best digital money stocks to invest in. On September 20, the company announced that it had expanded the retail-focused cryptocurrency offerings on the platform through the addition of USD Coin, a stablecoin that users will be able to send and receive on the platform. USD Coin is the second-largest stablecoin by market capitalization and is popular on the Polygon and Ethereum blockchain networks already. 

On August 12, Deutsche Bank analyst Brian Bedell maintained a Hold rating on Robinhood Markets, Inc. (NASDAQ:HOOD) stock and raised the price target to $10 from $9, noting that alternative managers were still best positioned for upside in the coming months. 

At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $616 million in Robinhood Markets, Inc. (NASDAQ:HOOD), compared to 19 in the previous quarter worth $947 million.

In its Q4 2021 investor letter, Claret Asset Management, an asset management firm, highlighted a few stocks and Robinhood Markets, Inc. (NASDAQ:HOOD) was one of them. Here is what the fund said:

“Robinhood Markets, Inc. (NASDAQ:HOOD) went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.” 

7. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 29    

Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy globally. The company is one of the most prominent digital money stocks to invest in. On September 22, the company revealed that it had secured regulatory approval from the central bank in the Netherlands to offer crypto-related products to customers in the country. The firm is the first global crypto exchange to receive registration approval from De Nederlandsche Bank. The firm said registrations in more crypto markets were also in the works around the globe. 

On September 14, JPMorgan analyst Kenneth Worthington maintained a Neutral rating on Coinbase Global, Inc. (NASDAQ:COIN) stock and raised the price target to $78 from $64, noting the firm had a substantial revenue opportunity that originates from higher interest rates.

At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Coinbase Global, Inc. (NASDAQ:COIN), compared to 46 the preceding quarter worth $2.3 billion.

In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:

“Coinbase Global Inc. Ordinary Shares (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”

6. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 67   

American Express Company (NYSE:AXP) provides charge and credit card products, as well as travel-related services. The company has hired more than 3,600 technical workers this year and aims to add 1,500 more to its technology division by the end of 2022. Ravi Radhakrishnan, the chief information officer of the firm, told news platform Bloomberg recently that about 60% of the hires will be in the US, about a third in India, and the remaining will be in Europe. The firm presently employs more than 64,000 people. American Express Company (NYSE:AXP) is now offering crypto cards and crypto rewards, which is why it features on our list of best digital money stocks to invest in.

On July 26, Citi analyst Arren Cyganovich maintained a Neutral rating on American Express Company (NYSE:AXP) stock and raised the price target to $159 from $148, appreciating the second quarter earnings results of the firm. 

Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in American Express Company (NYSE:AXP), with 151.6 million shares worth more than $2.1 billion. 

In addition to NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG), American Express Company (NYSE:AXP) is one of the best digital money stocks to buy now. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:

“In financials, American Express Company (NYSE:AXP) has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”

5. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 72  

Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provides reporting, analytics, and next-day settlement. It is one of the premier digital money stocks to invest in. On September 22, the company announced that it would be integrating with Afterpay in Canada in order to provide enhanced functionality to sellers using the e-commerce products of the former. The integration will allow Square sellers in Canada to provide Afterpay BNPL offerings to their customers. The firm said the strategy would help to attract new shoppers and increase revenue.

On September 23, JPMorgan analyst Tien-tsin Huang maintained an Overweight rating on Block, Inc. (NYSE:SQ) stock with a price target of $115, backing the firm to do the right thing with regards to managing growth and profitability. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm ARK Investment Management is a leading shareholder in Block, Inc. (NYSE:SQ), with 9.1 million shares worth more than $799.5 million. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:

“Block, Inc. (NYSE:SQ) provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84     

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing, and networking solutions. It is one of the top digital money stocks to invest in. On September 21, Jensen Huang, the CEO of the firm, eased investor concerns around US export restrictions to China, saying that restrictions placed on Nvidia by the US government should likely not impact the company that much. The executive even added that the new regulations would allow the chipmaker to expand presence in the Chinese market, which had a large opportunity for semi firms. 

On August 8, Oppenheimer analyst Rick Schafer maintained an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) stock and lowered the price target to $250 from $300, noting that there was a weakness in PC and gaming unit sales for the firm. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA), with 17.7 million shares worth more than $2.7 billion.  

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.

NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…(read more)” 

3. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 97 

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. The firm is among the best digital money stocks to invest in. In late August, the company announced that it would be teaming up with National Philanthropic Trust and Vanguard Charitable to launch Grant Payments. The product allows Donor-Advised Fund sponsors, community foundations, and other grant-makers to deliver grants to charities electronically via the payments system of PayPal. 

On September 26, Canaccord analyst Joseph Vafi maintained a Buy rating on PayPal Holdings, Inc. (NASDAQ:PYPL) stock with a price target of $160, citing the upcoming Pay with Venmo launch on Amazon as the next catalyst for PayPal shares. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with 17 million shares worth more than $1.2 billion.

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:

“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.

The company benefits from certain network effects and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 137    

Mastercard Incorporated (NYSE:MA) is a technology company that provides transaction processing and other payment-related products and services. On September 22, the company announced that it had provided Hamilton Reserve Bank cross-border payment capabilities to facilitate real-time customer payments in more than 100 countries. Hamilton is based in the Caribbean and expects to process over 20,000 transfers a month in the near future. The partnership allows Mastercard to grow in the region. 

On September 2, Deutsche Bank analyst Bryan Keane maintained a Buy rating on Mastercard Incorporated (NYSE:MA) stock with a price target of $440, noting the firm thought that the blockchain technology was here to stay. 

At the end of the second quarter of 2022, 137 hedge funds in the database of Insider Monkey held stakes worth $14.99 billion in Mastercard Incorporated (NYSE:MA), compared to 136 in the previous quarter worth $15.4 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 166  

Visa Inc. (NYSE:V) operates as a payments technology company worldwide. The firm features on the list of best digital money stocks to invest in. On September 22, the company announced that it would be partnering with Finastra for a Banking as a Service (or BaaS) collaboration to co-develop new functionality on the Payments Hub solutions and implement Visa Direct program. The new capability will give the bank customers of the latter access to cross-border payout capabilities in multiple currencies and countries.

On July 29, Mizuho analyst Dan Dolev maintained a Neutral rating on Visa Inc. (NYSE:V) stock and raised the price target to $220 from $215, noting that US debit growth was stronger at the payments company in the second quarter. 

At the end of the second quarter of 2022, 166 hedge funds in the database of Insider Monkey held stakes worth $24 billion in Visa Inc. (NYSE:V), compared to 159 in the preceding quarter worth $28 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

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Disclosure. None. 10 Best Digital Currency Stocks To Buy Now is originally published on Insider Monkey.