In this article, we will discuss the 7 best Bitcoin stocks to buy now.
Future of Bitcoin: What Can We Expect By 2024’s End?
Skyridge’s CEO Anthony Scaramucci expects Bitcoin to reach $100,000 by the end of 2024. In an interview with CNBC, he mentioned a number of factors working in this situation for instance the German government selling bitcoin, the Mt. Gox bankruptcy, and the April reward halving which has resulted in selling pressure in the ETFs. Let’s take a look at these factors.
In June, the German government started to sell bitcoin from a wallet operated by the Federal Criminal Police Office. The crypto reserves are also being sent by the government to exchanges such as Coinbase, Bitstamp, and Kraken. As this selling continued through July, Bitcoin’s price dropped dramatically and hit its lowest level since February 2024.
Another important event is the Japanese bitcoin exchange Mt. Gox which collapsed after being hacked 10 years ago, unloading $9 billion of coins. Mt. Gox used to be the biggest spot Bitcoin exchange across the globe. While it has started to repay in bitcoin and in bitcoin cash to its creditors through designated crypto exchanges., the market will be impacted. Bitcoin which was trading at $600 is worth more than $60,000 as of now. Those who are to be reimbursed in the cryptocurrency itself will witness their coin values rising by 10,000% over the last 10 years. Analysts expect this move to result in heavy but short-lived selling in bitcoin since Mt. Gox creditors are likely to sell some of their bitcoin to benefit from seismic gains. However, it is being believed that there is enough liquidity to absorb these sales over the next few months.
Additionally, FTX is going to release roughly $16 billion of cash to investors who had their accounts at the exchange. In the opinion of Scaramucci, 40 to 50% of that will be going back to the asset class as these people are early adopters in the digital asset space, known to be typically more loyal.
Simultaneously, Bitcoin experienced a reward halving in April. The halving event is pre-planned and takes place once every four years to slow the pace at which new coins are created. Through this reduced supply of the coin, the concept of Bitcoin as digital gold remains maintained. The event typically makes miners sell some of their bitcoin to keep their revenues up thereby putting temporary pressure on Bitcoin.
Now that we have taken a look at the current Bitcoin dynamics, let’s move to the 7 best Bitcoin stocks to buy right now.
Our Methodology:
In order to compile a list of the 7 best Bitcoin stocks to buy right now, we sifted through online rankings and ETFs to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 7 stocks from our list which had the highest number of hedge fund holders. The 7 best Bitcoin stocks to buy right now have been arranged in ascending order of their hedge fund holders as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Bitcoin Stocks To Buy Right Now
7. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 16
Marathon Digital Holdings, Inc. (NASDAQ:MARA) mines digital assets with a focus on the Bitcoin ecosystem in the United States. The company leverages digital asset compute to support the energy transformation by the conversion of clean, stranded, or underutilized energy into economic value. Marathon develops new technologies to advance the Bitcoin mining network.
Marathon sets the pace for the Bitcoin mining industry by being one of the largest and most liquid miners. The firm has witnessed increasing hashrate, BTC production, efficiency, and market share between 2022’s last quarter and 2023’s last quarter. Through self-hosting as well as third-party hosting, it has taken a diversified approach to Bitcoin mining which reduces risks. In its diversified portfolio of energy technology solutions, the firm currently owns and operates nearly 54% of the 1.1 gigawatts of power.
During August, Marathon Digital Holdings, Inc. (NASDAQ:MARA) grew its energized hash rate to 35.2 exahashes per second and successfully mined its 4,000th block. It remains on the path to achieve 50 exahashes per second by the year-end. During the second quarter, the company was strategically organized into three strategic business teams including Utility Scale Mining, Energy Harvesting, and Technology. By becoming a streamlined organization comprising three specialized business teams, the firm aims to better align with its growth opportunities.
With an all-time high installed current hash rate and a leading position in securing and supporting the Bitcoin ecosystem, Marathon is one of the best Bitcoin stocks to buy now. The stock was held by 16 hedge funds and Citadel Investment Group was the top shareholder, as of Q2 2024.
6. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 16
Bitfarms Ltd. (NASDAQ:BITF) is a leading Bitcoin mining company. The company runs vertically integrated mining operations with onsite technical repair, proprietary data analytics, and company-owned electrical engineering and installation services. The Bitcoin miner has a diversified production platform and has 11 operational farms across 4 countries including Canada, United States, Argentina, and Paraguay. The firm’s data centers are powered by more than 75% renewable power.
Bitfarms Ltd. (NASDAQ:BITF) serves as an early mover in the Bitcoin mining industry with its vertically integrated business currently spanning the globe. The company manages one of the largest internationally diversified portfolios of energy contracts in the Bitcoin data center business. It drives industry-leading yield-per-exahash and margin performance through strong financial positioning, efficient hardware, and low-cost power. For the second quarter, Bitfarms had a hashrate of 11.1 exahashes per second, up from 6.5 exahashes per second in the first quarter.
The firm’s recent developments are strategically significant for the expansion of its operational footprint. The announced acquisition of Stronghold Digital Mining is expected to increase Bitfarm’s energy portfolio to over 950 MW by the end of 2025. This solidifies the firm’s position in both HPC/AI sectors and Bitcoin mining. With a total expansion capacity of up to 1.6 GW, Bifarms is well set for multi-year growth. Additionally, the firm has assumed control of its first mega-site located in Sharon.
Bifarms firm is on its way to hitting over 35 exahashes per second in 2025, a 67% growth from 2the year-end target for 2024. The firm’s impressive energy portfolio and commitment to expansion reinforce its strong industry position. As of Q2 2024, the stock was held by 16 hedge funds thereby ranking it among some of the best cryptocurrency stocks while Millennium Management was the most dominant shareholder.
