We recently published a list of 10 Best Bitcoin and Blockchain Stocks To Buy Right Now. In this article, we are going to take a look at where Riot Platforms, Inc. (NASDAQ:RIOT) stands against other best bitcoin and blockchain stocks to buy.
Crypto Market Updates: Where is Bitcoin Heading?
While Donald Trump had revealed his plans to make America the crypto capital of the world, he also stated that he would be sacking the chair of the Securities and Exchange Commission, Gary Gensler, who has led the SEC’s crackdown on the crypto market. Gensler tried to regulate the market which he believed to be at least partially made up of securities trading illegally.
The price of bitcoin rose above $80,000 for the first time ever following Donald Trump’s victory in the US elections. Other cryptocurrencies such as dogecoin which is the favorite coin of Elon Musk, a strong Trump supporter, also posted gains. On November 29, CNBC reported that Bitcoin was on pace to post a 38% gain for November which would make the month its best since February.
While Tom Lee, Fundstrat Capital CIO, is confident that Bitcoin is going to close well above $100,000 before year-end as he joined CNBC, Bitwise’s Matt Hougan previously appeared on CNBC to call the market a win-win post-election. According to him, there is a clear path right up to $100,000 by 2024’s end while $200,000 is completely reasonable for 2025 considering that the trend is up and is going to stay intact for a while. As of December 5, Bitcoin is trading at $101,158.
Meanwhile, there is a noticeable shortage on the supply side. Frank Speiser, Metafide CEO joined ‘The Exchange’ to discuss his Bitcoin outlook on November 29. He mentioned ETF inflows being at record highs, an intention by the new administration to assemble a strategic Bitcoin reserve, and smaller trades simultaneously showing up on the market. However, there is not enough Bitcoin to satisfy the current rising demand.
An interesting new statement on the US crypto market was recently made by Fed Chair Jerome Powell as he called Bitcoin a competitor for gold, not the U.S. dollar, negating the stance of those crypto fans who see Bitcoin as a possible replacement for the dollar. Powell sees Bitcoin as a speculative asset such as gold, rather than something comparable to a currency.
With the new administration expected to legitimize digital assets and Bitcoin surpassing $100,000, the market is yet to see how things unfold.
A computer engineer working in a futuristic office, programming algorithms to mine cryptocurrency.
Our Methodology
In order to compile a list of the 10 best bitcoin and blockchain stocks to buy right now, we used stock screeners and relevant ETFs to make a list of the most dominant companies. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best bitcoin and blockchain stocks to buy right now have been arranged in ascending order of their hedge fund holders, as of Q3.
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).
Riot Platforms, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 19
Riot Platforms, Inc. (NASDAQ:RIOT) is a leading vertically integrated Bitcoin mining and digital infrastructure company. The firm has Bitcoin mining data center operations based in central Texas and Kentucky while the electrical switchgear engineering and fabrication operations are in Denver and Colorado. Riot operates through two primary business segments including Bitcoin Mining and Engineering after the termination of the Data Center Hosting business.
With a strong vision to be the world’s leading Bitcoin-driven infrastructure platform, Riot serves as an industry leader in vertically integrated Bitcoin mining. The firm has a significant scale of operations and anticipates achieving a total self-mining hash rate capacity of 34.9 EH/s by the end of 2024. As of the recent quarter, Riot boasted an industry-leading financial position, with $590.6 million in working capital, including $355.7 million in cash on hand and $190.1 million in marketable equity securities.
During the third quarter, the first full quarter past the Bitcoin halving event, Riot was successful in witnessing significant growth and maintaining low power costs. The firm posted $84.8 million in revenue, a 65% increase over the prior year period, driven by a 159% year-over-year rise in deployed hash rate to 28 EH/s at the end of the quarter.
In November, Riot Platforms, Inc. (NASDAQ:RIOT) mined 495 Bitcoin which reflects consistent month-over-month production regardless of a 7% increase in network difficulty during the month. The firm’s operating hash rate increased 13% month-over-month. Riot continues to deploy new miners and improve operations to increase its hash rate utilization further.
Overall, RIOT ranks 7th on our list of best bitcoin and blockchain stocks to buy right now. While we acknowledge the potential of RIOT 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 time frame. If you are looking for a deeply undervalued AI stock that is more promising than RIOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
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