In this article, we will discuss the 7 best Bitcoin stocks to buy now.
Future of Bitcoin: What Can We Expect By 2024’s End?
Skyridge’s CEO Anthony Scaramucci expects Bitcoin to reach $100,000 by the end of 2024. In an interview with CNBC, he mentioned a number of factors working in this situation for instance the German government selling bitcoin, the Mt. Gox bankruptcy, and the April reward halving which has resulted in selling pressure in the ETFs. Let’s take a look at these factors.
In June, the German government started to sell bitcoin from a wallet operated by the Federal Criminal Police Office. The crypto reserves are also being sent by the government to exchanges such as Coinbase, Bitstamp, and Kraken. As this selling continued through July, Bitcoin’s price dropped dramatically and hit its lowest level since February 2024.
Another important event is the Japanese bitcoin exchange Mt. Gox which collapsed after being hacked 10 years ago, unloading $9 billion of coins. Mt. Gox used to be the biggest spot Bitcoin exchange across the globe. While it has started to repay in bitcoin and in bitcoin cash to its creditors through designated crypto exchanges., the market will be impacted. Bitcoin which was trading at $600 is worth more than $60,000 as of now. Those who are to be reimbursed in the cryptocurrency itself will witness their coin values rising by 10,000% over the last 10 years. Analysts expect this move to result in heavy but short-lived selling in bitcoin since Mt. Gox creditors are likely to sell some of their bitcoin to benefit from seismic gains. However, it is being believed that there is enough liquidity to absorb these sales over the next few months.
Additionally, FTX is going to release roughly $16 billion of cash to investors who had their accounts at the exchange. In the opinion of Scaramucci, 40 to 50% of that will be going back to the asset class as these people are early adopters in the digital asset space, known to be typically more loyal.
Simultaneously, Bitcoin experienced a reward halving in April. The halving event is pre-planned and takes place once every four years to slow the pace at which new coins are created. Through this reduced supply of the coin, the concept of Bitcoin as digital gold remains maintained. The event typically makes miners sell some of their bitcoin to keep their revenues up thereby putting temporary pressure on Bitcoin.
Now that we have taken a look at the current Bitcoin dynamics, let’s move to the 7 best Bitcoin stocks to buy right now.
Our Methodology:
In order to compile a list of the 7 best Bitcoin stocks to buy right now, we sifted through online rankings and ETFs to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 7 stocks from our list which had the highest number of hedge fund holders. The 7 best Bitcoin stocks to buy right now have been arranged in ascending order of their hedge fund holders as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Bitcoin Stocks To Buy Right Now
7. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 16
Marathon Digital Holdings, Inc. (NASDAQ:MARA) mines digital assets with a focus on the Bitcoin ecosystem in the United States. The company leverages digital asset compute to support the energy transformation by the conversion of clean, stranded, or underutilized energy into economic value. Marathon develops new technologies to advance the Bitcoin mining network.
Marathon sets the pace for the Bitcoin mining industry by being one of the largest and most liquid miners. The firm has witnessed increasing hashrate, BTC production, efficiency, and market share between 2022’s last quarter and 2023’s last quarter. Through self-hosting as well as third-party hosting, it has taken a diversified approach to Bitcoin mining which reduces risks. In its diversified portfolio of energy technology solutions, the firm currently owns and operates nearly 54% of the 1.1 gigawatts of power.
During August, Marathon Digital Holdings, Inc. (NASDAQ:MARA) grew its energized hash rate to 35.2 exahashes per second and successfully mined its 4,000th block. It remains on the path to achieve 50 exahashes per second by the year-end. During the second quarter, the company was strategically organized into three strategic business teams including Utility Scale Mining, Energy Harvesting, and Technology. By becoming a streamlined organization comprising three specialized business teams, the firm aims to better align with its growth opportunities.
With an all-time high installed current hash rate and a leading position in securing and supporting the Bitcoin ecosystem, Marathon is one of the best Bitcoin stocks to buy now. The stock was held by 16 hedge funds and Citadel Investment Group was the top shareholder, as of Q2 2024.
6. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 16
Bitfarms Ltd. (NASDAQ:BITF) is a leading Bitcoin mining company. The company runs vertically integrated mining operations with onsite technical repair, proprietary data analytics, and company-owned electrical engineering and installation services. The Bitcoin miner has a diversified production platform and has 11 operational farms across 4 countries including Canada, United States, Argentina, and Paraguay. The firm’s data centers are powered by more than 75% renewable power.
Bitfarms Ltd. (NASDAQ:BITF) serves as an early mover in the Bitcoin mining industry with its vertically integrated business currently spanning the globe. The company manages one of the largest internationally diversified portfolios of energy contracts in the Bitcoin data center business. It drives industry-leading yield-per-exahash and margin performance through strong financial positioning, efficient hardware, and low-cost power. For the second quarter, Bitfarms had a hashrate of 11.1 exahashes per second, up from 6.5 exahashes per second in the first quarter.
The firm’s recent developments are strategically significant for the expansion of its operational footprint. The announced acquisition of Stronghold Digital Mining is expected to increase Bitfarm’s energy portfolio to over 950 MW by the end of 2025. This solidifies the firm’s position in both HPC/AI sectors and Bitcoin mining. With a total expansion capacity of up to 1.6 GW, Bifarms is well set for multi-year growth. Additionally, the firm has assumed control of its first mega-site located in Sharon.
Bifarms firm is on its way to hitting over 35 exahashes per second in 2025, a 67% growth from 2the year-end target for 2024. The firm’s impressive energy portfolio and commitment to expansion reinforce its strong industry position. As of Q2 2024, the stock was held by 16 hedge funds thereby ranking it among some of the best cryptocurrency stocks while Millennium Management was the most dominant shareholder.
5. CleanSpark, Inc. (NASDAQ:CLSK)
Number of Hedge Fund Holders: 20
CleanSpark, Inc. (NASDAQ:CLSK) develops infrastructure for Bitcoin. The Bitcoin miner owns and operates multiple data centers that primarily run on low-carbon power. The firm uses a sustainable energy mix comprising nuclear, hydroelectric, solar, and wind to mine Bitcoin in a responsible manner.
CleanSpark has one of the highest current hashrates of 22.3 exahashes per second among other Bitcoin miners. The firm has a proven track record of strategic growth as evidenced by its 129% year-over-year revenue growth and 204% year-over-year hashrate growth from the third quarter of 2023 to the third quarter of 2024. It closed the fiscal third quarter of 2024 with a 24% increase in hashrate during the quarter.
CleanSpark has positioned itself as the most efficient large-scale publicly traded Bitcoin miner which continues to grow its business. In July, it officially expanded into Tennessee and Wyoming. In August, the firm mined 478 bitcoin and improved its total operating hashrate by 1.4 exahashes per second. At the same time, it expects 65 MW of data center capacity to be energized during the coming month of September.
Currently, CleanSpark is trading at 23 times its forward earnings, with a discount of 3.28% to the sector which deems the stock a cheap investment. As a key player in Bitcoin mining with a clean energy base, the firm has an impressive growth and efficiency record and ranks on our list. According to Insider Monkey’s Q2 data, the stock is held by 20 hedge funds. Citadel Investment Group is the dominant shareholder in the company with a position worth $61 million.
4. TeraWulf Inc. (NASDAQ:WULF)
Number of Hedge Fund Holders: 37
TeraWulf Inc. (NASDAQ:WULF) develops, owns, and operates fully integrated Bitcoin mining facilities across the United States. Currently, the firm operates two bitcoin mining facilities including the Nautilus Cryptomine Facility in Pennsylvania which is directly powered by nuclear energy, and the Lake Mariner Facility in New York which utilizes more than 91% zero-carbon energy sourced from the grid.
TeraWulf’s extensive 600 megawatts of owned and scalable infrastructure serve as its competitive edge. TeraWulf Inc. (NASDAQ:WULF) is one of the most efficient public Bitcoin miners and digital infrastructure owners, with a fleet efficiency of 23.7 joules per terrahash. TeraWulf has solidified its existing market position by utilizing its successful bitcoin mining as the foundation for strategically moving into alternative compute hosting. Financed by an industry-leading OEM, the Bitcoin minor committed to purchasing a 128 GPU cluster from NVIDIA in the recent quarter. The firm is also carrying out the construction of a 2 MW AI/HPC digital infrastructure proof-of-concept building which has been designed to house high-density GPUs. The project is expected to be completed in early September.
The most recent August 2024 production and operations highlights show that TeraWulf’s installed and operational self-mining capacity witnessed a 100% year-over-year increase by hitting approximately 10.0 exahashes per second. The firm achieved an average production rate of approximately 5.9 bitcoin per day by mining 184 bitcoin during the month. The operational infrastructure capacity as of August comprises 50 MW at the Nautilus facility and 195 MW at the Lake Mariner facility.
The above strategic positioning and large-scale facilities enable TeraWulf to cater to the rising demand of the data center market. The firm’s focus on scalable zero-carbon energy infrastructure is a differentiating factor. The stock was held by 37 hedge funds at the end of Q2 which ranks it among the top cryptocurrency stocks to buy according to hedge funds.
3. Iris Energy Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 38
Iris Energy Limited (NASDAQ:IREN) owns, builds, and operates data centers and electrical infrastructure to mine Bitcoin. The company’s business model has been built on sustainably-mined Bitcoin. As a sustainable Bitcoin miner, the company’s sites are powered by 100% renewable energy. The company’s facilities are optimized for Bitcoin mining, AI cloud services, and other power-dense compute.
The firm is unique since it uses low-cost excess renewable energy to keep costs low, support communities, and solve the energy market challenges. Iris has a solid portfolio comprising 260MW of operating data centers while it has plans to expand to 510MW in 2024. Recently in July, the company secured an additional 150MW of immediately available power capacity at its Childress site which raised its total secured grid-connected power capacity to 2,310MW. Among its peers, Iris qualifies as a large-scale miner with its strong Bitcoin mining hashrate.
A comparison between FY 2024 and FY 2023 reveals a 66% rise in operating hashrate, a 29% rise in BTC mined, and an overall increase in Bitcoin mining revenue from $75.5 million to $184.1 million. For the full year ended June 30, Iris saw growth across its revenue, earnings, and cash flow. In Bitcoin mining, the firm remains set to achieve 30 exahashes per second by the end of this year. Simultaneously, the revenue for AI cloud services continues to scale.
Iris Energy Limited (NASDAQ:IREN) is one of the largest publicly listed Bitcoin miners which has a robust portfolio and strong growth potential thereby ranking on our list. As of Q2, the stock is held by 38 hedge funds. Castle Hook Partners is the dominant shareholder in the company with a position worth $77.5 million.
2. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 45
Coinbase Global, Inc. (NASDAQ:COIN) offers an online platform for buying, selling, saving, earning, transferring, and using cryptocurrency. The firm strives to improve economic freedom for more than 1 billion by allowing people and institutions to engage with crypto assets. Coinbase Global also provides critical infrastructure for onchain activity and support builders. In 2023, the firm was reported to hold 5% of the global Bitcoin supply deeming it one of the largest Bitcoin holders globally.
Comprising 245,000 ecosystem partners in over 100 countries, Coinbase offers a comprehensive platform that powers the cryptoeconomy. The firm mentions five key strengths behind this platform which include trust, crypto-first technology, easy-to-use products regardless of the complex underlying technology, repeatable innovation, and significant scale as it securely stores over $90 billion in assets on the platform. Coinbase Global, Inc. (NASDAQ:COIN) serves as one of the longest-running crypto platforms where customers haven’t experienced a loss of funds as a result of a security breach.
The firm recorded the year’s second quarter as its sixth consecutive quarter of positive adjusted EBITDA. Due to stablecoin revenue and blockchain rewards revenue, growth across the board was witnessed. The firm achieved success in diversifying revenue streams. Although transaction revenue was down 27% from last quarter, subscription and services revenue was found to be at an all-time high, growing 17% quarter-over-quarter to $599 million. The firm also reduced the Base fees in the quarter which resulted in 300% quarter-over-quarter growth in the number of transactions on Base.
With a market-leading share of assets, one of the most trusted platforms for managing crypto globally, and continuous developments in product offerings to ease the use of crypto, Coinbase has become a major player in the crypto industry. As of Q2 2024, the stock was held by 45 hedge funds thereby ranking it among some of the best Bitcoin stocks to buy right now while Citadel Investment Group was the most dominant shareholder.
1. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 53
Core Scientific, Inc. (NASDAQ:CORZ) is a leader in digital infrastructure for Bitcoin mining and high-performance computing. The firm was founded in 2017 and has scaled its operations over the years to be the first digital asset miner in North America to achieve 100, 250, and 500 megawatts of operating capacity. The firm engages in Bitcoin mining while it offers hosting services for Bitcoin mining and high-performance computing customers at its eight operational data centers including 2 in Georgia, 1 in Kentucky, 1 in North Carolina, 1 in North Dakota, and 3 in Texas.
The market position of Core Scientific, Inc. (NASDAQ:CORZ) remains strong as one of the largest bitcoin minors in North America. The firm receives the majority of its revenue from earning Bitcoin for its own account. While Core Scientific is strengthening its Bitcoin mining business, it is also focusing on expanding its HPC hosting capacity. The Bitcoin miner contracted 382 megawatts of infrastructure to host high-performance computing, something which will bring a potential revenue of almost $6.7 billion over 12 years. Hence, the company’s high-power digital infrastructure portfolio based on Bitcoin mining and high-performance computing positions it well for market leadership and growth.
Core Scientific successfully navigated the April halving event. During the second quarter, the firm reported a total revenue of $141 million, earned 1,680 bitcoins, operated 19.4 exahashes per second self-mining hash rate, and added 72 megawatts of infrastructure at the Denton, Texas data center. The firm has also reported HPC hosting as a separate segment which shows the growth driving ability for the business. The strength of its respective businesses and the status of earning more bitcoin than any other public company in North America since 2021 ranks Core Scientific, Inc. (NASDAQ:CORZ) among the 7 best Bitcoin stocks to buy right now. Core Scientific has 59 hedge fund holders, as of Q2 2024.
While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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