We recently published a list of 13 Best Cryptocurrency Stocks to Buy Now. In this article, we are going to take a look at where Bit Digital Inc (NASDAQ:BTBT) stands against other best cryptocurrency stocks to buy now.
Cryptocurrency stocks are on the move in the aftermath of US President Donald Trump announcing plans for a “Crypto Strategic Reserve.” The possibility of a cryptocurrency reserve is a significant step toward Trump’s goal of making the United States the global center of cryptocurrency.
The United States already possesses several strategic stockpiles, such as medical and military assets. In times of need, the government draws from these unique reserves. To keep the Federal Reserve afloat, the government would probably be actively purchasing and disposing of cryptocurrencies as part of the strategic reserve push.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
Additionally, some Bitcoin holders think that a cryptocurrency reserve may act as an inflation hedge. They contend that at times of global economic crisis, the value of Bitcoin may surpass that of the dollar, citing the currency’s declining worth over time. However, cryptocurrencies have shown to be highly volatile during recent geopolitical events, like Russia’s invasion of Ukraine. Additionally, some experts believe that the US government purchasing Bitcoin could endanger the dollar’s standing internationally.
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Critics contend that cryptocurrency is a speculative investment and has historically been volatile, while proponents claim that the proceeds may be used to pay down the country’s massive debt. Approximately 200,000 Bitcoin tokens are thought to be held in the United States due to illegal seizures. The total value of that exceeds $17 billion. With a reserve, these holdings might be expanded to include three lesser-known cryptocurrencies, XRP, Solana, and Cardano, in addition to Ethereum.
Amid the “crypto strategic reserve” push, cryptocurrency stocks’ popularity is growing as investors explore ways of diversifying their investment portfolio beyond traditional asset classes. The stocks stand out partly because they offer crypto exposure without requiring one to own the underlying volatile crypto asset. Additionally, the stocks provide both growth potential and innovation. Many experts regard them as being safer than direct cryptocurrency investments.
Our Methodology
To determine the 13 best cryptocurrency stocks to buy now, we analyzed the US market for companies with exposure to cryptocurrencies and blockchain technology. Our in-depth analysis focused on firms with solid prospects due to their investments in cryptocurrencies and the underlying technology. We reviewed ETFs and financial media reports to compile a preliminary list. Finally, we ranked the stocks in ascending order based on the hedge fund stakes in them during Q4 2024.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of technicians working on a server of bitcoin mining equipment in a data center.
Bit Digital Inc (NASDAQ:BTBT)
Average Upside Potential as of March 11: 281.94%
Number of Hedge Fund Holders: 14
Bit Digital Inc (NASDAQ:BTBT) is a financial services company that engages in the bitcoin mining business. It is also involved in treasury management, digital asset staking, and digital asset mining businesses. It is one of the companies holding significant cryptocurrencies in its portfolio and is poised to benefit from a substantial price spike.
As of the end of 2024, Bit Digital Inc (NASDAQ:BTBT) held about 742 Bitcoins and 27,623 Ethereum for a combined value of more than $160 million. The company creates a perpetual revenue flywheel by trading some of its bitcoin mining rewards for Ethereum, staking ETH to generate yield, and reinvesting the yield back into bitcoin miners. The company has also embarked on a diversification strategy beyond Bitcoin and Ethereum mining. Part of the diversification push entails signing a five-year colocation contract with prominent AI hardware innovators.
The colocation agreement paves the way for Bit Digital to supply a 5-megawatt custom data center infrastructure expected to supplement its cryptocurrency revenue base. Bit Digital Inc (NASDAQ:BTBT) remains committed to providing high-performance colocation solutions as it looks to take advantage of growing AI workloads.
Overall, BTBT ranks 11th on our list of best cryptocurrency stocks to buy now. While we acknowledge the potential of BTBT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTBT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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