These companies are closely linked to crypto and its fans.
Source: Petr Hoffmann / Shutterstock.com
Cryptocurrencies continue to rally, driven by several catalysts. Spot's approval Bitcoin (BTC USD) Exchange Traded Funds (ETFs) in January was a big spark for the entire industry. Lower interest rates, an upcoming Bitcoin halving in April, and the possible approval of ether (ETH-USDSpot ETFs are all expected to provide a tailwind for cryptocurrencies through the summer and keep the current rally going. With Bitcoin recently hitting an all-time high of $69,202, many analysts and market observers are now predicting that Bitcoin price will surpass $150,000 by the end of the year. Large gains are forecast for smaller cryptocurrencies, including ETH. Here are three stocks to buy as a new crypto rally emerges.
MicroStrategy (MSTR)
Source: DCStockPhotography / Shutterstock.com
Not only Microstrategy (NASDAQ:MSTR) has amassed a Bitcoin stake worth $13 billion, more than any other company. It is now raising $600 million to buy even more BTC. At the end of February, MicroStrategy announced that it had purchased 3,000 additional Bitcoins, bringing its total holdings to 193,000 digital tokens. MicroStrategy is now the world's largest owner of Bitcoin or other cryptocurrencies.
MicroStrategy first began buying Bitcoin in 2020 when revenue from its software business began to decline. Saylor said the average purchase price for Bitcoin at MicroStrategy is $31,544, putting the value of the stake at more than $13 billion based on current prices. While MicroStrategy is still technically a software company, its share price now moves largely in lockstep with the price of Bitcoin. MSTR stock is up 576% in the last 12 months.
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
block (NYSE:square) CEO Jack Dorsey is also a big fan of cryptocurrencies. He changed the company's name to Block to reflect the company's increasing focus on crypto and the underlying blockchain. Although the stake is not as large as MicroStrategy, Block still has a significant stake in Bitcoin. At the end of 2023, the digital payments company held 8,038 Bitcoin, which is currently worth $544.17 million.
While Block continues to operate its popular banking platform Cash App, the company is increasingly focusing on cryptocurrencies. Recently, Block reported a surprise quarterly profit, largely driven by a $207 million increase in its BTC holdings. The company also said it made $66 million in profits from Bitcoin sales in the final quarter of 2023, up 90% year-over-year. SQ stock is currently up 12% year-to-date.
Coinbase Global (COIN)
Source: Primakov / Shutterstock.com
Cryptocurrency trading volumes are increasing rapidly, and that is good news Coinbase Global (NASDAQ:COIN), the largest crypto exchange in the US, Coinbase has benefited so much from the surge in crypto trading that it recently reported its first profit in two years. Coinbase announced earnings per share for the fourth quarter of 2023 (EPS) of $1.04 compared to the forecast 27 cents. It was the first profit since the fourth quarter of 2021.
Coinbase also reported that revenue rose 58% year-over-year to $953.80 million, above expectations of $818.36 million. Trading revenue from investors on the Coinbase exchange increased by 79% between the third and fourth quarters of last year. The company said interest in cryptocurrencies has only increased since the U.S. Securities and Exchange Commission approved spot Bitcoin exchange-traded funds (ETFs) in January.
COIN stock has gained more than 300% in the last 12 months.
At the time of publication, Joel Baglole did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publication policies.
Joel Baglole has been a business journalist for 20 years. He was a reporter at The Wall Street Journal for five years and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.