In this article, we will look at 10 best cryptocurrency stocks to buy now.
Industry giants such as Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Mastercard Incorporated (NYSE:MA) are pouring billions of dollars into blockchain technology and cryptocurrency-related operations.
According to the Cryptocurrency Market 2022 report, published by Research and Markets, the global cryptocurrency market was worth $1.78 trillion in 2021. The market is projected to grow at a compound annual growth rate of 58.4% from 2021 to 2027 and is expected to reach $32.42 trillion by the end of the forecasted period. The rising popularity of decentralized applications is expected to drive this growth among other catalysts. Governments’ initiatives to accept cryptocurrencies around the world as fiat currencies are further adding credibility and reducing skepticism around the sustainability of digital assets. Furthermore, increasing digitization across a wide array of industries is also cited among the key drivers for the growth of the global cryptocurrency industry.
Payments giants Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Mastercard Incorporated (NYSE:MA) are bullish on the future of cryptocurrencies and are reportedly working on their own blockchain projects and stable coins.
The cryptocurrency market is a high-reward market, but there is a tradeoff. The market is highly volatile and therefore comes with greater risks. Let’s look at Bitcoin for example. The most renowned and accepted cryptocurrency soared to an all-time high of over $68,000 in November 2021. As of the first quarter of 2022, the noble cryptocurrency is trading under $30,000, well below its 2021 average of $47,300. To manage risk and relatively avoid market volatility, one can invest in cryptocurrency stocks to take up a stake or explore the market.
jason-briscoe-Gw_sFen8VhU-unsplash
Our Methodology
To devise the list of best cryptocurrency stocks to buy now we did a careful analysis of the cryptocurrency market and identified major players, as well as emerging crypto mining companies. We narrowed down our selection to stocks that received consensus “Buy” ratings from analysts and had positive sentiment around them. We mentioned the analyst and investor sentiment with each of our picks, as we believe both to be critical indicators when forecasting a stock’s upside.
Best Cryptocurrency Stocks To Buy Now
10. Canaan Inc. (NASDAQ:CAN)
Number of Hedge Fund Holders: 7
Canaan Inc. (NASDAQ:CAN) is a leading Chinese developer and manufacturer of integrated circuit final mining equipment products for Bitcoin mining and related activities. Its ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services have helped it gain widespread popularity in the crypto industry, making it one of the best pure-play cryptocurrency stocks to buy now.
On May 19, Canaan Inc. (NASDAQ:CAN) reported earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.47 but missed expectations by $0.03. The company’s quarterly revenues came in at $202.13 million, missing Wall Street consensus by $11.73 million. The company’s earnings are reflective of Covid-related restrictions in China, which negatively impacted its sales. Regardless, Canaan is a significantly undervalued stock to consider when looking to invest in the cryptocurrency industry. As of June 4, Canaan Inc. (NASDAQ:CAN) has a forward PE ratio of 1.44.
This May, DA Davidson analyst Hans Chung slashed his price target on Canaan Inc. (NASDAQ:CAN) to $10 from $15 but maintained a Buy rating on the shares. Chung remains conservative on the stock in the near term due to volatility in Bitcoin which the analyst believes could have a negative impact on demand and pricing. Regardless, the analyst remains bullish for the stock in the long-term given secular demand trends, share gain potential, healthy balance sheets, and free cash flow.
At the end of the first quarter of 2022, 7 hedge funds were bullish on Canaan Inc. (NASDAQ:CAN) with stakes worth $8.83 million in the company. Of these, Israel Englander’s Millennium Management was the most bullish hedge fund, having stakes of $6.21 million, making it the top stakeholder in the company.
9. Hut 8 Mining Corp. (NASDAQ:HUT)
Number of Hedge Fund Holders: 7
Hut 8 Mining Corp. (NASDAQ:HUT) operates as a cryptocurrency mining company in North America. The company engages in industrial-scale Bitcoin mining operations and owns multiple cryptocurrency mining powerhouses across Canada. As of January 31, 2022, Hut 8 Mining Corp. (NASDAQ:HUT) holds over 5,800 Bitcoins in reserve. As of June 4, the stock has a forward PE ratio of 8.05, which makes it a value stock pick for investors looking to have stakes in the cryptocurrency industry.
On May 12, Hut 8 Mining Corp. (NASDAQ:HUT) posted its performance for the fiscal first quarter of 2022. The company reported revenues of $40.90 million, up 52.97% year over year, missing estimates by $3.16 million. The company registered an EPS of $0.24 and exceeded expectations by $0.19.
Shortly after the company’s earnings release, Canaccord analyst Joseph Vafi lowered his price target on Hut 8 Mining Corp. (NASDAQ:HUT) to $6 from $12 but reiterated a Buy rating on the shares. Vafi noted that Hut 8 Mining Corp. (NASDAQ:HUT) is among the companies that have a solid track record in the Bitcoin mining industry. The analyst remains bullish and told investors that he believes the management at the company is dedicated to expanding its mining operations while simultaneously diversifying the company’s business model.
At the close of Q1 2022, 7 hedge funds were long Hut 8 Mining Corp. (NASDAQ:HUT) with stakes worth $7.91 million in the company. Of these, the top shareholder was Gillson Capital, with over 0.51 million shares in possession as of March 31, 2022. Gillson Capital upped its stakes in the company by 1100%, bringing them to over $2.84 million.
Hut 8 Mining Corp. (NASDAQ:HUT) is an attractive pure-play in the cryptocurrency industry. Other prominent names that are making strides in the cryptocurrency space include Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Mastercard Incorporated (NYSE:MA).
8. Argo Blockchain Plc (NASDAQ:ARBK)
Number of Hedge Fund Holders: 5
Argo Blockchain Plc (NASDAQ:ARBK) is a United Kingdom-based cryptocurrency mining company that engages in the Bitcoin and other cryptocurrency mining businesses worldwide. The company was incorporated in 2017. At the close of Q1 2022, 5 hedge funds held stakes in Argo Blockchain Plc (NASDAQ:ARBK), worth $2.54 million. This is compared to 8 hedge funds in the previous quarter with stakes of $3.10 million.
This May, Argo Blockchain Plc (NASDAQ:ARBK) reported its performance for the fiscal first quarter of 2022. The company reported a net income of $2.1 million and adjusted EBITDA of $19.1 million, up 24% year over year. The company reported revenues of $19.5 million, up roughly 9% year over year. Argo Blockchain Plc (NASDAQ:ARBK) is making strides and mining crypto on the go. The company recorded a 21% increase in total Bitcoin mined in Q1 2022, which came in at 470, up from 387. As of the first quarter of 2022, Argo Blockchain Plc (NASDAQ:ARBK) holds 2,700 Bitcoins in reserve and a cash balance of $11.9 million, which provides the company with abundant liquidity, and makes it one of the best cryptocurrency stocks to buy in now.
Analysts are bullish on Argo Blockchain Plc (NASDAQ:ARBK) and the stock is attracting multiple “Buy” ratings. On May 20, Canaccord analyst Joseph Vafi cut his price target on Argo Blockchain Plc (NASDAQ:ARBK) to $13 from $16 but maintained a Buy rating on the shares.
In the first quarter of 2022, Jim Simons’ Renaissance Technologies raised its stakes in Argo Blockchain Plc (NASDAQ:ARBK) by 632% bringing them to over $0.88 million. This makes Renaissance Technologies the dominating stakeholder in the company.
7. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 7
Bitfarms Ltd. (NASDAQ:BITF) is another leading cryptocurrency mining company based in North America. The company owns and operates server farms that validate transactions on the Bitcoin Blockchain, and helps the company in earning cryptocurrency from block rewards and transaction fees. On May 16, the company announced 2022 milestones and goals, in which it reported that its existing infrastructure construction contracts are expected to provide an increased hash rate of 6.0 EH/s by the close of 2022. The company’s quarterly hash rate targets for 2022 quarterly were reported to be 4.0 EH/s by June 30, 4.2 EH/s by September 30, and 6.0 EH/s by December 31, 2022.
Bitfarms Ltd. (NASDAQ:BITF) is expanding its operations and rising to prominence in the cryptocurrency industry. Moreover, as of June 4, Bitfarms Ltd. (NASDAQ:BITF) has a trailing-twelve-month PE ratio of 10.56, which makes it one of the best value cryptocurrency stocks to buy now.
On May 16, Bitfarms Ltd. (NASDAQ:BITF) reported earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.01, missing expectations by $0.03. The company’s quarterly revenues came in at $40.33 million, up 41.84% year over year, and outperformed market consensus by roughly $0.72 million.
Bitfarms Ltd. (NASDAQ:BITF) is being eyed by investors. At the end of the first quarter of 2022, 7 hedge funds held stakes in the cryptocurrency mining company, worth $8.57 million. Of these, the majority were attributed to Ken Griffin’s Citadel Investment Group, which owns 1.05 million shares of the company as of March 31, 2022, and is the top shareholder.
6. Riot Blockchain, Inc (NASDAQ:RIOT)
Number of Hedge Fund Holders: 14
Riot Blockchain, Inc. (NASDAQ:RIOT) is a Colorado-based cryptocurrency mining company that focuses on Bitcoin mining operations in North America. The company operates through four business segments: Bitcoin Mining, Data Center Hosting, Electrical Products, and Engineering. As of December 31, 2021, the company operated roughly 31,000 miners. As of Q1 2022, 14 hedge funds have stakes in Riot Blockchain, Inc. (NASDAQ:RIOT) worth $28.58 million. This is compared to 18 hedge funds in the prior quarter with stakes worth $37.12 million.
On May 10, Riot Blockchain, Inc. (NASDAQ:RIOT) posted its performance for the fiscal first quarter of 2022. The company registered an EPS of $0.30, beating Wall Street estimates by $0.29. The company reported quarterly revenues of $79.80 million, up 244.01% year over year, but missed consensus by $1.98 million.
Along with its earnings release, Riot Blockchain, Inc. (NASDAQ:RIOT) also recorded a 186% gain in Bitcoin production quantity, and mined a record 1,405 Bitcoins in Q1 2022, up from 491 Bitcoins in the comparable quarter last year. Moreover, as of June 4, the stock has a forward PE ratio of 8.61, which makes it an undervalued pure-play in the crypto industry, and ranks it sixth among the best cryptocurrency stocks to buy now.
This June, BTIG analyst Gregory Lewis trimmed his price target on Riot Blockchain, Inc. (NASDAQ:RIOT) to $15 from $50 but maintained a Buy rating on the shares. The analyst’s price cut is reflective of the drop in Bitcoin value, which is trading near $30,000, down 35% year-to-date. However, Lewis remains bullish on large miners and believes they will continue to have access to capital at the expense of emerging miners.
Legendary investor Steve Cohen’s Point72 Asset Management raised its stakes in Riot Blockchain, Inc. (NASDAQ:RIOT) by 340% in the first quarter of 2022. As of March 31, the fund’s stakes in the company are valued at $10.36 million, making it the leading stakeholder in the company.
Riot Blockchain, Inc. (NASDAQ:RIOT) is one of the largest cryptocurrency miners in the world. Other prominent backers of cryptocurrency and blockchain technology are Visa Inc. (NYSE:V), JPMorgan Chase & Co. (NYSE:JPM), and Mastercard Incorporated (NYSE:MA).
5. Marathon Digital Holdings Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 17
Marathon Digital Holdings, Inc. (NASDAQ:MARA) mines cryptocurrencies and focuses on the blockchain ecosystem and the generation of digital assets in the United States. As of December 31, 2021, the company had roughly 8,100 Bitcoins, of which an estimated 4,800 Bitcoins were held in its investment fund.
On May 4, Marathon Digital Holdings, Inc. (NASDAQ:MARA) released earnings for the fiscal first quarter of 2022. The company reported a loss per share of $0.13 and missed Wall Street consensus by $0.23. The company generated revenues of $51.72 million, up 465.05% year over year, missing expectations by $1.83 million.
Along with its earnings, Marathon Digital Holdings, Inc. (NASDAQ:MARA) also reported increased Bitcoin production of 15% from Q4 2021, and mined 1,259 Bitcoins, up 556% from the comparable quarter in 2021. Moreover, the company also reported a 449% year-over-year increase in its hash rate, with the total number of miners deployed increasing to over 36,000, which generated roughly 3.9 EH/s in Q1 2022. The company is producing remarkable numbers in Bitcoin and crypto mining and is ranked fifth among the best cryptocurrency stocks to buy now.
This June, Chardan analyst Brian Dobson initiated coverage of Marathon Digital Holdings, Inc. (NASDAQ:MARA) with a Buy rating and a $19 price target. As of June 4, the stock has a forward PE ratio of 14.88.
Insider Monkey identified 17 hedge funds long Marathon Digital Holdings, Inc. (NASDAQ:MARA) at the end of Q1 2022. The total stakes of these funds came in at $62.01 million, down from $78.15 million with 15 positions in the prior quarter.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company operates one of the largest crypto exchange platforms in the world and is, therefore, one of the best cryptocurrency stocks to buy now.
On May 10, Coinbase Global, Inc. (NASDAQ:COIN) posted results for the fiscal first quarter of 2022. The company reported a loss per share of $1.26 and missed expectations by $2.17. The company’s quarterly revenues came in at $1.17 billion, down 35.24% year over year, missing estimates by $309.61 million. Regardless, the stock is attracting bullish ratings and the company is also witnessing insider purchases. On May 17, it was reported in a regulatory filing that one of the company’s directors, Frederick Ehrsam, purchased over 0.70 million shares of common stock on May 13 in an all-cash transaction of $50 million.
On May 26, Cowen analyst Stephen Glagola initiated coverage of Coinbase Global, Inc. (NASDAQ:COIN) with an Outperform rating and an $85 price target.
At the end of the first quarter of 2022, 46 hedge funds held stakes in Coinbase Global, Inc. (NASDAQ:COIN). The total stakes of these funds in the company were valued at $2.32 billion. Of these, the largest stakeholder was Catherine D. Wood’s ARK Investment Management whose stakes, as of March 31, 2022, are valued at $1.32 billion in the company. ARK Investment Management upped its prior stakes by 29%, and the investment covers 5.53% of its 13F portfolio.
Here is what Longleaf Partners Fund had to say about Coinbase Global, Inc. (NASDAQ:COIN) in its fourth-quarter 2021 investor letter:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”
3. CME Group Inc. (NASDAQ:CME)
Number of Hedge Fund Holders: 58
CME Group Inc. (NASDAQ:CME) is one of the world’s largest financial derivatives exchanges, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures. The company offers a range of cryptocurrency products, tools, and courses on cryptocurrency trading. CME Group Inc. (NASDAQ:CME) is focused on the two most prominent cryptocurrencies: Bitcoin and Ethereum. It is the third-best cryptocurrency stock to buy now.
Analysts are growing bullish on CME Group Inc. (NASDAQ:CME). This June, UBS analyst Alex Kramm cut his price target on CME Group Inc. (NASDAQ:CME) to $258 from $284 but maintained a Buy rating on the shares. The analyst also named CME Group Inc. (NASDAQ:CME) among the best plays in a rising and volatile interest rate environment.
By the end of the first quarter of 2022, 58 hedge funds held stakes in CME Group Inc. (NASDAQ:CME) worth $2.95 billion. This is compared to 55 hedge funds in the previous quarter with stakes of $2.72 billion. The hedge fund sentiment for the stock is positive.
GuardCap Asset Management raised its Q4 2021 stakes in CME Group Inc. (NASDAQ:CME) by 3% in the first quarter of 2022. As of March 31, the hedge fund owns more than 4.15 million shares of the company which amounts to a stake of $987.30 million. The investment covers 12.93% of GuardCap Asset Management’s 13F portfolio and makes it the top shareholder in the company.
Baron Funds, an asset management firm, mentioned CME Group Inc. (NASDAQ:CME) in its “Baron Durable Advantage Fund” first-quarter 2022 investor letter. Here is what the firm said:
“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”
2. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 84
Block, Inc. (NYSE:SQ) is a California-based American financial services and digital payments company that creates tools that enable sellers to accept card payments and provide reporting, analytics, and next-day settlement. The company has millions of dollars invested in digital assets and blockchain technology. Block, Inc. (NYSE:SQ) also operates one of the largest digital payments platforms, the Cash app, which allows for Bitcoin transactions. The stock is one of the best cryptocurrency stocks to buy now.
Analysts are growing bullish on Block, Inc. (NYSE:SQ). This May, Truist analyst Andrew Jeffrey slashed his price target on Block, Inc. (NYSE:SQ) to $145 from $165 but maintained a Buy rating on the shares. Jeffrey contended that The company’s business model, target audience, and growth trajectory are neglected in its valuation. The analyst believes Block, Inc. (NYSE:SQ) is on its way to becoming one of the world’s most prominent FinTech companies. Moreover, on May 20, JPMorgan analyst Tien-Tsin Huang reiterated Block, Inc. (NYSE:SQ) as his top growth pick.
Hedge funds are raising their stakes in Block, Inc. (NYSE:SQ). As of the first quarter of 2022, 84 hedge funds are bullish on Block, Inc. (NYSE:SQ) with stakes worth $6.18 billion. This is compared to 96 positions in the previous quarter with stakes worth $5.95 billion.
ARK Investment Management upped its Q4 2021 stakes in Block, Inc. (NYSE:SQ) by 35%, bringing its Q1 2022 stakes to $1.12 billion. As of March 31, Catherine D. Wood’s hedge fund owns over 8.3 million shares of the company and is the most prominent shareholder.
Here is what Farrer Wealth Advisors had to say about Block, Inc. (NYSE:SQ) in its “Farrer Wealth Managed Solution” first-quarter 2022 investor letter:
“Block (formerly Square): We ‘adopted’ Block’s stock after the company bought Afterpay, which we were investors in. We had been trimming the Afterpay position throughout 2021 and trimmed again after the acquisition, so the position was quite small. We held onto that small portion, as we did think the acquisition made sense and were excited to see the two companies integrate and for Block to create a closed loop network between merchants and consumers. However, the market punished most highly valued tech stocks over the last months, and we saw the position move against us by over 50%. We are firm believers that when a stock goes against you by 50%+, you need to do something about it. Either trim/sell and reinvest or buy more. In the case of Block, the original reason for holding was to see how the acquisition and integration with Afterpay panned out. The market did not give us the time to see this play out, thus we were not comfortable adding more to the position. Further for the stock to recover to our purchase price, we felt the company’s valuation would need to command a future exit multiple that the market would be unlikely to pay in this environment. Given this, we exited the remainder of the position.”
1. Paypal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 100
Paypal Holdings, Inc. (NASDAQ:PYPL) has been a leading financial services provider for decades and is also among the pioneers of digital payments platforms. The company facilitates cryptocurrency transactions on its digital payments app and allows users to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Paypal Holdings, Inc. (NASDAQ:PYPL) is also working on launching its own stable coin and is on its way to becoming a leading name in the cryptocurrency industry.
On April 28, Canaccord analyst Joseph Vafi cut his price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $160 from $215 but reiterated a Buy rating on the shares. Vafi remains bullish on the stock regardless of slow business. The analyst sees multiple catalysts driving the company’s growth including the nearing of the launch of Venmo as a payment option on Amazon, and strong demand growth for Braintree, BNPL, Crypto, and personal finance.
At the close of Q1 2022, 100 hedge funds were long Paypal Holdings, Inc. (NASDAQ:PYPL) with stakes worth $6.21 billion. This is compared to 110 hedge funds in the fourth quarter of 2021 with stakes of $9.93 billion.
Ken Fisher’s Fisher Asset Management is the top shareholder in Paypal Holdings, Inc. (NASDAQ:PYPL) as of the first quarter of 2022. The hedge fund raised its Q4 2021 stakes in the company by 16%, bringing them to $1.94 billion, which covers 1.14% of Fisher Asset Management’s 13F portfolio.
Aristotle Capital Management named several companies, one of which was Paypal Holdings, Inc. (NASDAQ:PYPL), in its “Aristotle Core Equity” first-quarter 2022 investor letter. Here is what the firm said:
“We sold our position in PayPal due to the uncertain twelve-month horizon the company faces due to market headwinds from inflation and supply chain issues impacting e-commerce. On a more fundamental level, we sold due to the seismic shift in strategy and our disappointment with management credibility. The company reported weak 2022 guidance, and a strategic shift announced on the fourth quarter 2021 earnings call. The global payments space is undergoing a massive transition due to new technology introduced by both private and new Initial Public Offerings prospects, and we believe that the significant amount of private capital underwriting the new technology will continue to pressure incumbent players, even those as large and seemingly in the sweet spot of e-commerce payments, as PayPal currently is.”
You can also take a look 10 Best Cryptocurrencies Redditors are Buying and 15 Most Valuable Blockchain Companies in the World.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Best Bitcoin Stocks
- 11 Best Cryptocurrency Stocks To Buy According To Hedge Funds
- 10 Best Blockchain Stocks to Buy
Disclose. None. 10 Best Cryptocurrency Stocks To Buy Now is originally published on Insider Monkey.
