In this article we discuss the 5 best cryptocurrency stocks to invest in 2021. If you want to read our detailed analysis of these stocks, go directly to the 12 Best Cryptocurrency Stocks to Invest in 2021.
5. Square, Inc. (NYSE: SQ)
Number of Hedge Fund Holders: 92
Square, Inc. (NYSE: SQ) is a payments company that has gained prominence in recent years as one of the biggest institutional backers of cryptocurrencies, holding more than $400 million in crypto-related investments. As such, as Bitcoin fell over the past few weeks, the stock has been one of the most affected on the market. However, the firm has a sound business model and a lot of room to run in markets besides cryptocurrencies until the crypto storm is over. It is ranked fifth on our list of 12 best cryptocurrency stocks to invest in 2021.
Square, Inc. (NYSE: SQ) stock has returned more than 132% to investors over the past year. On June 4, it climbed more than 3% after CEO Jack Dorsey announced that the firm was exploring the possibility of making and selling a hardware wallet for crypto coins like Bitcoin.
At the end of the first quarter of 2021, 92 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Square, Inc. (NYSE: SQ) , up from 89 the preceding quarter worth $8.8 billion.
4. Tesla, Inc. (NASDAQ: TSLA)
Number of hedge fund holders: 62
Tesla, Inc. (NASDAQ: TSLA) is an electric vehicle and clean energy firm that has consistently backed the rise of blockchain-based digital currencies. The company has recently announced that it will resume Bitcoin payments for vehicle sales once Bitcoin miners use at least 50% clean energy for their operations. The company had earlier suspended Bitcoin payments for sales after chief Elon Musk raised environmental concerns around mining. It is placed fourth on our list of 12 best cryptocurrency stocks to invest in 2021.
Tesla, Inc. (NASDAQ: TSLA) stock was given a Buy rating by investment advisory Mizuho on June 15 on the back of strong battery electric vehicle sales trends. The company is the largest EV firm in the world, controlling more than 24% of the total market share in the industry globally during the first three months of 2021.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ: TSLA) with 24.4 million shares worth more than $16.3 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
3. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Advanced Micro Devices, Inc. (NASDAQ: AMD) is a semiconductor chip manufacturer whose products are used to mine cryptocurrencies. Amid a shortage of chips in the industry because of increased demand and supply chain issues, the company’s shares have soared in recent weeks. The shortage is expected to last for several months, giving the stock plenty of room to climb higher. As mining operations increase, the products sold by the firm continue to sell like hot cakes.
Advanced Micro Devices, Inc. (NASDAQ: AMD) is placed third on our list of 12 best cryptocurrency stocks to invest in 2021. The company’s shares have returned more than 46% to investors over the past twelve months.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ: AMD) with 25 million shares worth more than $1.9 billion.
2. SOS Limited (NYSE: SOS)
Number of Hedge Fund Holders: 6
SOS Limited (NYSE: SOS) is a Chinese information technology company that markets data mining and analysis services. The firm is famous for owning a cloud emergency rescue service software that offers medical, auto, and financial rescue services. In early May, the company reported a more than 330% increase in fiscal year revenue. It is ranked second on our list of 12 best cryptocurrency stocks to invest in 2021.
In April, SOS Limited (NYSE: SOS) had signed an agreement to purchase 575 cryptocurrency mining rigs. CEO Yandai Wang has previously said that the firm expects crypto to be a vital part of the business growth strategy in 2021 and beyond. SOS plans to mine Ethereum, the second most popular cryptocurrency, using the rigs.
At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in SOS Limited (NYSE: SOS).
1. Coinbase Global, Inc. (NASDAQ: COIN)
Number of Hedge Fund Holders: N/A
Coinbase Global, Inc. (NASDAQ: COIN) is the largest cryptocurrency exchange in the world. It debuted on the stock market in April this year, ending the first day of trading at a record $86 billion valuation. It is ranked first on our list of 12 best cryptocurrency stocks to invest in 2021. On June 16, investment advisory Canaccord initiated coverage on the stock with a Buy rating and a price target of $285, implying 23% upside potential as crypto stocks slowly regain momentum after recording a slump in the past few weeks.
On June 10, Coinbase Global, Inc. (NASDAQ: COIN) announced that it was expanding borrowing services to more US states. Users can borrow cash using Bitcoin as collateral using the borrowing services offered by the company in the US.
Media reports indicate that Coinbase Global, Inc. (NASDAQ: COIN) has also been working with a retirement plans firm to allow 401(k) users to invest in cryptocurrencies.
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
