5 Crypto Stocks To Avoid During The SEC Crackdown

In this article, we will be looking at 5 crypto stocks to avoid during the SEC crackdown. To see more of these stocks, you can go to 10 Crypto Stocks To Avoid During The SEC Crackdown.

5. MicroStrategy Incorporated (NASDAQ:MSTR)

Number of Hedge Fund Holders: 13

MicroStrategy Incorporated (NASDAQ:MSTR) is a business intelligence company with large Bitcoin holdings. By April, the company had about 140,000 BTC.

There were 13 hedge funds long MicroStrategy Incorporated (NASDAQ:MSTR) in the first quarter, with a total stake value of $64.1 million.

Miller Value Partners made the following comment about MicroStrategy Incorporated (NASDAQ:MSTR) in its first-quarter 2023 investor letter:

“MicroStrategy Incorporated (NASDAQ:MSTR) 0.75% 12/15/2025 rose in sympathy with Bitcoin’s 71.7% gain during the first quarter. The company reported 4Q22 revenue of $132.6MM, -1.5% Y/Y (+4.1% on constant currency basis), ahead of consensus of $131.0MM, and an adjusted loss from operations of -$176.7MM, compared to a 4Q21 adjusted loss of -$124.3MM. During the quarter, MicroStrategy’s subsidiary, Macrostrategy, voluntarily paid off a $205MM loan to Silvergate Bank with a 22% discount after the bank filed for liquidation earlier this year. Additionally, MicroStrategy reported that it purchased another ~6.5K bitcoin for ~$150MM in cash, at an average price of $23.2K per token, bringing the company’s total holdings to ~139.0K bitcoin as of 3/23/23, which is worth approximately $3.95B based on a bitcoin price of ~$28.4K as of 3/31/23.”

4. Marathon Digital Holdings Inc (NASDAQ:MARA)

Number of Hedge Fund Holders: 13

B. Riley analysts hold a Neutral rating on Marathon Digital Holdings Inc (NASDAQ:MARA) shares as of May 15.

At the end of the first quarter, 13 hedge funds held stakes in Marathon Digital Holdings Inc (NASDAQ:MARA). Their total stake value was $19.9 million.

Marathon Digital Holdings Inc (NASDAQ:MARA) focuses on the blockchain ecosystem in its digital asset mining business.

Horizon Kinetics LLC mentioned Marathon Digital Holdings Inc (NASDAQ:MARA) in its first-quarter 2022 investor letter:

“Investors also tend to not give sufficient credit to the power of management to enhance or create additional value with such an asset. The commercialization of land requires considerable management expertise. This particular transaction involves two other parties that will build and operate up to 60 megawatts of bitcoin mining, which was stated could accommodate up to 2.0 Exahash of operational capacity. That is quite sizable. As a reference point, Marathon Digital Holdings (NASDAQ:MARA), which has a $1.0 billion stock market value, even after a year-to-date decline of 70%, had about 3.6 EH/s of capacity at year-end 2021, though it expects to reach 13.3 EH/s during this calendar year. The TPL venture is expected to begin operations in the fourth quarter of this year.”

3. Applied Digital Corporation (NASDAQ:APLD)

Number of Hedge Fund Holders: 11

Applied Digital Corporation (NASDAQ:APLD), formerly known as Applied Blockchain, Inc., provides and operates datacenters in the US.

Our hedge fund data shows 11 funds long Applied Digital Corporation (NASDAQ:APLD) in the first quarter, with a total stake value of $24.7 million.

2. Canaan Inc. (NASDAQ:CAN)

Number of Hedge Fund Holders: 8

As of June 7, shares of Canaan Inc. (NASDAQ:CAN) are down by 49.34% over the past year.

Canaan Inc. (NASDAQ:CAN) designs integrated circuit final mining equipment products for Bitcoin mining. It has operations in the US, Australia, Canada, China, and internationally.

Eight hedge funds were long Canaan Inc. (NASDAQ:CAN) in the first quarter. Their total stake value was $8.5 million.

1. Hut 8 Mining Corp. (TSE:HUT)

Number of Hedge Fund Holders: 2

Hut 8 Mining Corp. (TSE:HUT) is a crypto mining company operating in North America.

Shares of Hut 8 Mining Corp. (TSE:HUT) are down by 2.11% over the past year as of June 7.

Two hedge funds held stakes in Hut 8 Mining Corp. (TSE:HUT) during the first quarter, with a total stake value of $44,000.

See also 10 Best Crypto Hardware Wallets In 2023 and 10 Most Profitable Cryptocurrency Stocks.