In this article, we will discuss the 5 best Bitcoin stocks to invest in according to hedge funds. To read the detailed analysis and recent updates about the cryptocurrency industry, go directly to the 10 Best Bitcoin Stocks to Invest in According to Hedge Funds.
5. Advanced Micro Devices, Inc (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc (NASDAQ:AMD) is a California-based semiconductor manufacturer. The company is on our list of the best Bitcoin stocks to invest in according to hedge funds because it creates GPUs and CPUs for the blockchain technology on which most cryptocurrencies, including Bitcoins, run and are used for crypto mining.
Other than the high-profile acquisitions of Pensando and Xilinx last year, Advanced Micro Devices, Inc (NASDAQ:AMD) is focused on diversifying its portfolio through partnerships. On April 6, an extension of the partnership between the company and Samsung Electronics (OTCPK:SSNLF) was announced to continue the integration of Radeon graphics technology into Samsung Exynos SoCs.
On April 25, Stifel analyst Ruben Roy increased the price target on Advanced Micro Devices, Inc (NASDAQ:AMD)’s stock to $98 from $91 and kept a Buy rating on the shares. The firm predicted lower estimates for Q2 in light of the possible decreased data center demand and the probable sluggish pace of bouncing back of the PC market.
White Falcon Capital Management mentioned Advanced Micro Devices, Inc (NASDAQ:AMD) in its first-quarter 2023 investor letter. Here is what is said:
“Last quarter we added Advanced Micro Devices, Inc. (NASDAQ:AMD) to the portfolio at 18x earnings and quickly made it into a top 5 position. At that time, Mr. Market was worried about earnings revisions for semiconductor stocks. In Q1 2023, it has been one of our best performing positions with the stock up 50%! In just three months, the market realized that Artificial Intelligence (AI) and related technologies require a lot of semiconductors. Mr. Market really is manic depressive but this volatility can give the enterprising investor just enough of a window to pick stocks with attractive risk rewards.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 106
NVIDIA Corporation (NASDAQ:NVDA) is a technology company and its product range includes GPUs, CPUs, SoCs, and more. The company is one of the best Bitcoin stocks to invest in according to hedge funds as its GPUs are extensively utilized to mine various types of cryptocurrencies.
On April 19, BofA increased the price target of NVIDIA Corporation (NASDAQ:NVDA)’s shares to $340 from $310 while keeping the Buy rating on the stock. According to the firm, the company’s earnings power estimate for the year 2027 will be elevated because of increased value being placed on GPUs, owing to the penetration of AI.
NVIDIA Corporation (NASDAQ:NVDA)’s GPUs are often targeted toward high-end buyers as many of them sell for around $40,000. However, on April 12, the company rolled out GeForce RTX 4070. The GPU will use AI and will be priced at around $599.
Aristotle Atlantic Partners, LLC highlighted NVIDIA Corporation (NASDAQ:NVDA) in its first-quarter 2023. Here is what it said:
“NVIDIA Corporation (NASDAQ:NVDA) contributed to outperformance, as the company announced better-than-expected fourth quarter earnings driven by a strong rebound in Gaming and an improving outlook for the Datacenter business due to the acceleration of Graphics Processing Unit (GPU) driven Artifical Intelligence (AI) deployment. The company also hosted its Global Technology Conference (GTC) in March where it further highlighted its leading technology being used to develop AI Large Language Models (LLM). The company announced new partnerships with hyperscalers for its AI cloud-based service while also releasing new software and hardware offerings that will support GPU-driven AI growth. Nvidia continues to see a growing addressable market for its products and services as AI uses become more prevalent.”
3. Paypal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 115
Paypal Holdings, Inc. (NASDAQ:PYPL) offers payment solutions through its fintech platform to users in various countries. The financial payment system of the company allows users to buy cryptocurrencies, including Bitcoin, through a bank account, debit card (Paypal compatible), or Paypal balance.
On April 11, Paypal Holdings, Inc. (NASDAQ:PYPL) announced that it will be partnering with Visa Inc. (NYSE:V) to launch Visa+ with Venmo. Through the service, the company’s users will be able to conduct transactions between multiple digital payment apps without needing any Visa card.
In Q4 2022, 115 hedge funds had stakes in Paypal Holdings, Inc. (NASDAQ:PYPL) worth $5.1 billion, and Citadel Investment Group was the biggest stakeholder in the company after increasing its stake by 412%.
Paypal Holdings, Inc. (NASDAQ:PYPL) was mentioned in the fourth-quarter 2022 investor letter of Renaissance Investment Management. Here is what it is:
“Another underperformer in the quarter was PayPal Holdings, Inc. (NASDAQ:PYPL). Despite reporting solid third quarter operating results and announcing new payment agreements with both Apple and Amazon.com, the company guided for a slowdown in e-commerce activity, partly reflecting weakened consumers who are dealing with heightened inflation. However, we still expect growth in PayPal’s core payments platforms to improve in upcoming quarters, driven by easier year-over-year comparisons.”
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 139
Mastercard Incorporated (NYSE:MA) is a New York-based payment processing leader with products like different types of cards, and fraud management and security solutions. While the company got into the crypto world in 2021, it launched crypto trading for financial institutions last year through Crypto Source which is made secure with Mastercard Crypto Secure.
On April 28, BMO Capital increased the price target on Mastercard Incorporated (NYSE:MA)’s shares to $442 from $414 and maintained Outperform rating. The firm made a note of the company’s quality services and incoming cross-border revenue.
On April 27, Mastercard Incorporated (NYSE:MA) announced a non-GAAP EPS of $2.80, surpassing the estimates by $0.09 in Q1. The 9.6% YoY growth in revenue that brought it to $5.7 billion was because of increased cross-border travel, growth of 35%, and rising customer spending.
Polen Capital mentioned Mastercard Incorporated (NYSE:MA) in its first-quarter 2023 investor letter. Here is what it said:
“We trimmed Mastercard Incorporated (NYSE:MA) and Visa to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double-digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e-commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.
We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 177
Visa Inc. (NYSE:V) is the biggest financial technology services company in the world and offers its digital payment services in more than 200 countries. Many companies’ niche Bitcoin cards are rolled out in partnership with the company.
In Q4, a total of 177 hedge funds had stakes in Visa Inc. (NYSE:V), up from 165 funds in the prior quarter. The total worth of the stakes was $26.46 billion. In the same quarter, London-based TCI Fund Management was the most significant stakeholder with 19.9 million shares, making up 13.83% of the fund’s portfolio.
On March 30, Visa Inc. (NYSE:V) announced that it is extending its partnership with Fold, a Bitcoin rewards app to introduce Bitcoin rewards in new areas. The partnership originally started in 2020 and since then it has yielded $30 million in Bitcoin as rewards.
Polen Capital mentioned Visa Inc. (NYSE:V) in its first-quarter 2023 investor letter. Here is what it said:
“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.
We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”
You can also look at the Analysts Are Increasing Price Targets of These 10 Stocks and 13 Best New Stocks To Invest In.
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