In this article, we discuss the 11 crypto stocks with the biggest upside. To skip the detailed analysis and latest updates around cryptocurrencies, go directly to the 5 Crypto Stocks with Biggest Upside.
Since the launch of the first cryptocurrency, Bitcoin, there have been voices rejecting this asset class as anything substantial. However, over the years, it has been proving all of those voices wrong. Bitcoin has been proving to be “digital gold” as investors and analysts like Cathie Wood and Deutsche Bank Research’s senior strategist Marion Laboure call it. Bitcoin reached its all-time high on March 13, crossing $73,000. Wood has even gone on to say that the digital currency might cross the $1 million mark by 2030.
The volatility of cryptocurrencies is one of the reasons why many people have bearish sentiment toward them. Nevertheless, the recent U.S. Securities and Exchange Commission’s (SEC) approval of a rule change to allow the creation of Bitcoin ETFs, on January 10, has officiated Bitcoin’s recognition status in the financial markets. Since the approval of ETFs, the biggest spot Bitcoin ETF, Grayscale Bitcoin Trust (GBTC), has gained over 40% between January 11 and March 22. Additionally, BlackRock, Inc.’s (NYSE:BLK) iShares Bitcoin ETF’s (IBIT) trading volumes were over $1 billion on March 11, and it is 36.73% higher between the above-mentioned period. Even after the substantial gains, Wall Street analysts are predicting a substantial upside for several crypto stocks, which provides a bullish view of these ETFs as well.
On March 8, in an interview with CNBC, Cathie Wood discussed the reason for her firm’s optimistic stance on Bitcoin. She explained that there are already 19.5 million outstanding Bitcoins and around 15 million of them haven’t been moved in over 155 days. Recognizing that there will only ever be 21 million Bitcoins in existence makes a strong bull case for the asset due to its scarce nature. Wood’s spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), is up nearly 37% between January 11 and March 22.
After the approval of spot Bitcoin ETFs, experts have been speculating whether spot ETFs for other cryptocurrencies will be approved or not. Galaxy Digital Holdings’ founder, Michael Novogratz, believes that there is a possibility of it happening for Ethereum as well. In an interview with Bloomberg, on February 29, he said:
“The same logic that the Bitcoin ETF got through on, which was ‘there is already a futures ETF, and you believed in that, how dare you not believe in a cash ETF’ holds for Ethereum. And so, my bias is [that] it gets through sometime this year. But we’ll see.”
Bitcoin Halving Event in April
Bitcoin halving events take place every four years (every time 210,000 blocks are added to the chain), which usually brings a lot of volatility in the asset, as seen in the past. At a Bitcoin halving event, the amount of new Bitcoins made becomes half. In other words, miners get half the reward they used to for checking transactions and putting them in the blockchain, which maintains the scarcity of Bitcoin. There have been three halving events to date as of March 22, 2024, and the next one is expected to take place between the 16th and 19th of April, 2024. The first event took place on November 28, 2012, when the amount of new bitcoins generated per block decreased from 50 to 25. On July 9, 2016, it was halved once more to 12.5 bitcoins per block, and then on May 11, 2020, the new bitcoins created per block were reduced from 12.5 to 6.25. The next halving event will reduce the bitcoin created per block to 3.125.
Looking at the price charts around these three events, halving has caused the price of Bitcoin to rise substantially after six months. On the day of the first halving, the price per Bitcoin was $12.35, and by May 30, 2013, the price per Bitcoin rose to $132.25, showing an over 970% increase. Similarly, during the second and third halving events, the price per Bitcoin stood at around $650 and $8821, respectively. After six months of the second halving, Bitcoin price rose by nearly 40% and then over 73% after the third halving, reaching $15,290 on November 11, 2020. It is important to note that these gains are not guaranteed, and the situation can change concerning the market sentiment and conditions.
With the latest developments in the crypto market in mind, some crypto stocks with the biggest upside include Bakkt Holdings, Inc. (NYSE:BKKT), Bit Digital, Inc. (NASDAQ:BTBT), and Iris Energy Limited (NASDAQ:IREN). You can also check out 20 Countries with the Highest Cryptocurrency Adoption and 11 Most Profitable Cryptocurrency Stocks.
11 Crypto Stocks with Biggest Upside
Our Methodology
For this article, we identified 18 cryptocurrency stocks with the biggest upside potential through financial media websites, including Barrons, Motley Fool, NASDAQ, and some of our previous articles, such as 11 Crypto Stocks with Biggest Upside posted in September 2023. Next, we checked each stock’s analyst ratings and price targets on TipRanks. We then chose the 11 stocks with the highest average analyst price target upside at the time of writing on March 22 and listed the stocks in ascending order of this metric.
We also mentioned the hedge fund sentiment around each stock. The hedge fund data was taken from Insider Monkey’s database of 933 elite hedge funds as of Q4, 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
11 Crypto Stocks with Biggest Upside
11. Block, Inc. (NYSE:SQ)
Average Price Target as of March 22: $90.59
Average Upside Potential as of March 22: 11.88%
Number of Hedge Fund Holders: 75
Block, Inc. (NYSE:SQ) offers various cryptocurrency products and services, including a crypto wallet called Bitkey, bitcoin trading through the Cash App, the TBD platform for developers, and a bitcoin-focused business entity called Spiral.
In the last three months, 31 Wall Street analysts have covered Block, Inc. (NYSE:SQ), and 27 maintain a Buy-equivalent rating on the stock. The average price target of $90.59 represents an upside of 11.88% from the present levels, as of March 22.
In the fourth quarter of 2023, hedge fund sentiment was positive toward Block, Inc. (NYSE:SQ). In the quarter, 75 hedge funds held positions in the stock, and their stakes amounted to $3.6 billion. This is compared to 60 funds in the third quarter, with positions worth $2.355 billion. As of December 31, 2023, Catherine D. Wood’s ARK Investment Management is the largest shareholder in the company and has a position worth $919.508 million.
Block, Inc. (NYSE:SQ) is one of the crypto stocks with the biggest upside that is also popular among hedge funds. Other top crypto stocks to buy according to analysts and hedge funds include Bakkt Holdings, Inc. (NYSE:BKKT), Bit Digital, Inc. (NASDAQ:BTBT), and Iris Energy Limited (NASDAQ:IREN).
Baron Funds mentioned Block, Inc. (NYSE:SQ) in its fourth quarter 2023 investor letter. Here is what it said:
“During the quarter, we also added to our existing investment in Block, Inc. (NYSE:SQ). The company provides a point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. After the company reported solid quarterly result, it has also guided to reach a rule of 40 on GAAP profitability for fiscal year 2026 (implying that the combination of gross profit growth and GAAP operating margins would be at least 40%). We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion over the long term. We also believe that Block has a long runway for growth, durable competitive advantages, and a robust track record of innovation.”
10. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Average Price Target as of March 22: $23.83
Average Upside Potential as of March 22: 13.64%
Number of Hedge Fund Holders: 19
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a Florida-based company highly focused on Bitcoin mining. The company also carries out the processing of Bitcoin transactions and creating newly minted Bitcoins. According to the company’s website, it has 11 mining sites and 230,968 total operational miners.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) takes the tenth spot on our list of crypto stocks with the biggest upside. In Q4 of 2023, 19 hedge funds held positions in the stock, and their total stakes amounted to $104.914 million.
On March 15, Marathon Digital Holdings, Inc. (NASDAQ:MARA) announced that it would purchase the Bitcoin mining data center from Applied Digital Corporation (NASDAQ:APLD) in Garden City, Texas. The company will pay $87.3 million in cash and acquire the nameplate capacity of 200 megawatts.
Based on 6 Wall Street analysts’ ratings, Marathon Digital Holdings, Inc. (NASDAQ:MARA) has an average price target of $23.83, which implies an upside of 13.64% to the last price of $20.97, as of March 22.
9. Cipher Mining Inc. (NASDAQ:CIFR)
Average Price Target as of March 22: $5.83
Average Upside Potential as of March 22: 24.84%
Number of Hedge Fund Holders: 16
Cipher Mining Inc. (NASDAQ:CIFR) is engaged in expanding and maintaining Bitcoin’s infrastructure by mining it and upholding the security of the network. The company has four data mining centers in Texas. Over the past 3 months, Cipher Mining Inc. (NASDAQ:CIFR) has received Buy ratings from 3 Wall Street analysts. The average price target of $5.83 has an upside of 24.84% from the current levels, as of March 22. It takes the ninth spot on our list of crypto stocks with the biggest upside.
On March 5, Cipher Mining Inc. (NASDAQ:CIFR) reported earnings for the full year 2023. The company reported GAAP earnings per share (EPS) of -$0.10, which beat the estimates by $0.10. The company’s revenue for the quarter grew by 4,071.1% year-over-year and amounted to $126.8 million, ahead of market consensus by $3.07 million.
Hedge fund sentiment was positive toward Cipher Mining Inc. (NASDAQ:CIFR) in Q4 of 2023, as hedge funds with investments in the stock were 16 in the quarter with positions worth $16.263 million. This is compared to 9 funds with positions worth $1.471 million in the preceding quarter.
8. Hut 8 Corp. (NASDAQ:HUT)
Average Price Target as of March 22: $11.33
Average Upside Potential as of March 22: 30.24%
Number of Hedge Fund Holders: 4
Hut 8 Corp. (NASDAQ:HUT) is a Florida-based company that offers blockchain infrastructure and technology solutions and has a growing reserve of self-mined Bitcoins. The company owns and operates seven sites, including five traditional data centers and two digital asset mining sites. Hut 8 Corp. (NASDAQ:HUT) was part of 4 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $9.117 million.
On March 18, Needham initiated coverage of Hut 8 Corp.’s (NASDAQ:HUT) stock with a Buy rating and a $12 price target. Ahead of the halving event, the analyst commended the company’s diversification strategy. Another positive point that the analyst highlighted was that the company’s production costs stand the chance of lowering due to “near-term fleet efficiency gains”.
Over the past three months, 4 Wall Street analysts have given their recommendations on Hut 8 Corp. (NASDAQ:HUT), with 2 recommending to Buy the stock. At the time of writing on March 22, the stock’s average price target of $11.33 implies an upside of 30.24% to its current price.
7. TeraWulf Inc. (NASDAQ:WULF)
Average Price Target as of March 22: $4.00
Average Upside Potential as of March 22: 65.98%
Number of Hedge Fund Holders: 9
TeraWulf Inc. (NASDAQ:WULF) owns and operates Bitcoin mining facilities in the U.S. According to the company’s website, its Lake Mariner and Nautilus Cryptomine facilities have combined targets of achieving 238 MW in infrastructure capacity and a 74,500 deployed miner fleet for Q3, 2024.
In the past three months, TeraWulf Inc. (NASDAQ:WULF) has received Buy ratings from 2 Wall Street analysts. As of March 22, the average price target of $4.00 has an upside of 65.98% from the last price of $2.41. TeraWulf Inc. (NASDAQ:WULF) holds the seventh position on our list of crypto stocks with the biggest upside.
In the fourth quarter of 2023, 9 hedge funds had stakes in TeraWulf Inc. (NASDAQ:WULF) with total positions worth $15.909 million. This is compared to 7 funds with positions worth $3.806 million in the preceding quarter.
6. Riot Platforms, Inc. (NASDAQ:RIOT)
Average Price Target as of March 22: $20.25
Average Upside Potential as of March 22: 77.48%
Number of Hedge Fund Holders: 21
Riot Platforms, Inc. (NASDAQ:RIOT) is a Bitcoin company that offers mining, data center hosting, and advanced electrical equipment solutions. The company has mining and data center operations in Texas. Meanwhile, its engineering solutions and equipment are offered under ESS Metron, which is based in Colorado.
Wall Street is bullish on Riot Platforms, Inc. (NASDAQ:RIOT). On March 20, JPMorgan analyst Reginald Smith upgraded the stock to Overweight from Neutral and maintained a price target of $15. Riot Platforms, Inc. (NASDAQ:RIOT) is one of the crypto stocks with the biggest upside on our list, as the stock has a consensus rating of Strong Buy as per the 8 Wall Street analysts that have covered it over the past three months. The average price target of $20.25 implies an upside of 77.48% from the last price of $11.41, as of March 22.
In the fourth quarter of 2023, 21 hedge funds had stakes in Riot Platforms, Inc. (NASDAQ:RIOT) with total positions worth $130.561 million. This is compared to 17 funds with positions worth $56.900 million in the preceding quarter. As of December 31, 2023, Marshall Wace LLP is the largest shareholder in the company, with a stake worth $30.647 million.
Some of the top crypto stocks that have caught the attention of analysts and investors include Bakkt Holdings, Inc. (NYSE:BKKT), Bit Digital, Inc. (NASDAQ:BTBT), Iris Energy Limited (NASDAQ:IREN), and Riot Platforms, Inc. (NASDAQ:RIOT).
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Disclosure. None. 11 Crypto Stocks with Biggest Upside is originally published on Insider Monkey.