In this article, we will look at 5 best cryptocurrency stocks to buy now. If you want to learn about the cryptocurrency market and explore similar stocks, you can go to 10 Best Cryptocurrency Stocks To Buy Now.
5. Marathon Digital Holdings Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 17
Marathon Digital Holdings, Inc. (NASDAQ:MARA) mines cryptocurrencies and focuses on the blockchain ecosystem and the generation of digital assets in the United States. As of December 31, 2021, the company had roughly 8,100 Bitcoins, of which an estimated 4,800 Bitcoins were held in its investment fund.
On May 4, Marathon Digital Holdings, Inc. (NASDAQ:MARA) released earnings for the fiscal first quarter of 2022. The company reported a loss per share of $0.13 and missed Wall Street consensus by $0.23. The company generated revenues of $51.72 million, up 465.05% year over year, missing expectations by $1.83 million.
Along with its earnings, Marathon Digital Holdings, Inc. (NASDAQ:MARA) also reported increased Bitcoin production of 15% from Q4 2021, and mined 1,259 Bitcoins, up 556% from the comparable quarter in 2021. Moreover, the company also reported a 449% year-over-year increase in its hash rate, with the total number of miners deployed increasing to over 36,000, which generated roughly 3.9 EH/s in Q1 2022. The company is producing remarkable numbers in Bitcoin and crypto mining and is ranked fifth among the best cryptocurrency stocks to buy now.
This June, Chardan analyst Brian Dobson initiated coverage of Marathon Digital Holdings, Inc. (NASDAQ:MARA) with a Buy rating and a $19 price target. As of June 4, the stock has a forward PE ratio of 14.88.
Insider Monkey identified 17 hedge funds long Marathon Digital Holdings, Inc. (NASDAQ:MARA) at the end of Q1 2022. The total stakes of these funds came in at $62.01 million, down from $78.15 million with 15 positions in the prior quarter.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company operates one of the largest crypto exchange platforms in the world and is, therefore, one of the best cryptocurrency stocks to buy now.
On May 10, Coinbase Global, Inc. (NASDAQ:COIN) posted results for the fiscal first quarter of 2022. The company reported a loss per share of $1.26 and missed expectations by $2.17. The company’s quarterly revenues came in at $1.17 billion, down 35.24% year over year, missing estimates by $309.61 million. Regardless, the stock is attracting bullish ratings and the company is also witnessing insider purchases. On May 17, it was reported in a regulatory filing that one of the company’s directors, Frederick Ehrsam, purchased over 0.70 million shares of common stock on May 13 in an all-cash transaction of $50 million.
On May 26, Cowen analyst Stephen Glagola initiated coverage of Coinbase Global, Inc. (NASDAQ:COIN) with an Outperform rating and an $85 price target.
At the end of the first quarter of 2022, 46 hedge funds held stakes in Coinbase Global, Inc. (NASDAQ:COIN). The total stakes of these funds in the company were valued at $2.32 billion. Of these, the largest stakeholder was Catherine D. Wood’s ARK Investment Management whose stakes, as of March 31, 2022, are valued at $1.32 billion in the company. ARK Investment Management upped its prior stakes by 29%, and the investment covers 5.53% of its 13F portfolio.
Here is what Longleaf Partners Fund had to say about Coinbase Global, Inc. (NASDAQ:COIN) in its fourth-quarter 2021 investor letter:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”
3. CME Group Inc. (NASDAQ:CME)
Number of Hedge Fund Holders: 58
CME Group Inc. (NASDAQ:CME) is one of the world’s largest financial derivatives exchanges, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures. The company offers a range of cryptocurrency products, tools, and courses on cryptocurrency trading. CME Group Inc. (NASDAQ:CME) is focused on the two most prominent cryptocurrencies: Bitcoin and Ethereum. It is the third-best cryptocurrency stock to buy now.
Analysts are growing bullish on CME Group Inc. (NASDAQ:CME). This June, UBS analyst Alex Kramm cut his price target on CME Group Inc. (NASDAQ:CME) to $258 from $284 but maintained a Buy rating on the shares. The analyst also named CME Group Inc. (NASDAQ:CME) among the best plays in a rising and volatile interest rate environment.
By the end of the first quarter of 2022, 58 hedge funds held stakes in CME Group Inc. (NASDAQ:CME) worth $2.95 billion. This is compared to 55 hedge funds in the previous quarter with stakes of $2.72 billion. The hedge fund sentiment for the stock is positive.
GuardCap Asset Management raised its Q4 2021 stakes in CME Group Inc. (NASDAQ:CME) by 3% in the first quarter of 2022. As of March 31, the hedge fund owns more than 4.15 million shares of the company which amounts to a stake of $987.30 million. The investment covers 12.93% of GuardCap Asset Management’s 13F portfolio and makes it the top shareholder in the company.
Baron Funds, an asset management firm, mentioned CME Group Inc. (NASDAQ:CME) in its “Baron Durable Advantage Fund” first-quarter 2022 investor letter. Here is what the firm said:
“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”
2. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 84
Block, Inc. (NYSE:SQ) is a California-based American financial services and digital payments company that creates tools that enable sellers to accept card payments and provide reporting, analytics, and next-day settlement. The company has millions of dollars invested in digital assets and blockchain technology. Block, Inc. (NYSE:SQ) also operates one of the largest digital payments platforms, the Cash app, which allows for Bitcoin transactions. The stock is one of the best cryptocurrency stocks to buy now.
Analysts are growing bullish on Block, Inc. (NYSE:SQ). This May, Truist analyst Andrew Jeffrey slashed his price target on Block, Inc. (NYSE:SQ) to $145 from $165 but maintained a Buy rating on the shares. Jeffrey contended that The company’s business model, target audience, and growth trajectory are neglected in its valuation. The analyst believes Block, Inc. (NYSE:SQ) is on its way to becoming one of the world’s most prominent FinTech companies. Moreover, on May 20, JPMorgan analyst Tien-Tsin Huang reiterated Block, Inc. (NYSE:SQ) as his top growth pick.
Hedge funds are raising their stakes in Block, Inc. (NYSE:SQ). As of the first quarter of 2022, 84 hedge funds are bullish on Block, Inc. (NYSE:SQ) with stakes worth $6.18 billion. This is compared to 96 positions in the previous quarter with stakes worth $5.95 billion.
ARK Investment Management upped its Q4 2021 stakes in Block, Inc. (NYSE:SQ) by 35%, bringing its Q1 2022 stakes to $1.12 billion. As of March 31, Catherine D. Wood’s hedge fund owns over 8.3 million shares of the company and is the most prominent shareholder.
Here is what Farrer Wealth Advisors had to say about Block, Inc. (NYSE:SQ) in its “Farrer Wealth Managed Solution” first-quarter 2022 investor letter:
“Block (formerly Square): We ‘adopted’ Block’s stock after the company bought Afterpay, which we were investors in. We had been trimming the Afterpay position throughout 2021 and trimmed again after the acquisition, so the position was quite small. We held onto that small portion, as we did think the acquisition made sense and were excited to see the two companies integrate and for Block to create a closed loop network between merchants and consumers. However, the market punished most highly valued tech stocks over the last months, and we saw the position move against us by over 50%. We are firm believers that when a stock goes against you by 50%+, you need to do something about it. Either trim/sell and reinvest or buy more. In the case of Block, the original reason for holding was to see how the acquisition and integration with Afterpay panned out. The market did not give us the time to see this play out, thus we were not comfortable adding more to the position. Further for the stock to recover to our purchase price, we felt the company’s valuation would need to command a future exit multiple that the market would be unlikely to pay in this environment. Given this, we exited the remainder of the position.”
1. Paypal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 100
Paypal Holdings, Inc. (NASDAQ:PYPL) has been a leading financial services provider for decades and is also among the pioneers of digital payments platforms. The company facilitates cryptocurrency transactions on its digital payments app and allows users to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Paypal Holdings, Inc. (NASDAQ:PYPL) is also working on launching its own stable coin and is on its way to becoming a leading name in the cryptocurrency industry.
On April 28, Canaccord analyst Joseph Vafi cut his price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $160 from $215 but reiterated a Buy rating on the shares. Vafi remains bullish on the stock regardless of slow business. The analyst sees multiple catalysts driving the company’s growth including the nearing of the launch of Venmo as a payment option on Amazon, and strong demand growth for Braintree, BNPL, Crypto, and personal finance.
At the close of Q1 2022, 100 hedge funds were long Paypal Holdings, Inc. (NASDAQ:PYPL) with stakes worth $6.21 billion. This is compared to 110 hedge funds in the fourth quarter of 2021 with stakes of $9.93 billion.
Ken Fisher’s Fisher Asset Management is the top shareholder in Paypal Holdings, Inc. (NASDAQ:PYPL) as of the first quarter of 2022. The hedge fund raised its Q4 2021 stakes in the company by 16%, bringing them to $1.94 billion, which covers 1.14% of Fisher Asset Management’s 13F portfolio.
Aristotle Capital Management named several companies, one of which was Paypal Holdings, Inc. (NASDAQ:PYPL), in its “Aristotle Core Equity” first-quarter 2022 investor letter. Here is what the firm said:
“We sold our position in PayPal due to the uncertain twelve-month horizon the company faces due to market headwinds from inflation and supply chain issues impacting e-commerce. On a more fundamental level, we sold due to the seismic shift in strategy and our disappointment with management credibility. The company reported weak 2022 guidance, and a strategic shift announced on the fourth quarter 2021 earnings call. The global payments space is undergoing a massive transition due to new technology introduced by both private and new Initial Public Offerings prospects, and we believe that the significant amount of private capital underwriting the new technology will continue to pressure incumbent players, even those as large and seemingly in the sweet spot of e-commerce payments, as PayPal currently is.”
You can also take a look 10 Best Cryptocurrencies Redditors are Buying and 15 Most Valuable Blockchain Companies in the World.
