We recently published a list of 7 Most Profitable Cryptocurrency Stocks To Invest In. In this article, we are going to take a look at where Cipher Mining Inc. (NASDAQ:CIFR) stands against other most profitable cryptocurrency stocks to invest in.
Where is the Crypto Industry Heading?
Bitcoin recently bounced back to the $62,000 level in the week ended October 11. Simultaneously, Ether jumped 1.73% to $2,443 and Solana climbed 4.23% to $144. The weekly performance reflected a quiet crypto market with Bitcoin slightly dipping while Ether and Solana inching up by less than 1%.
Amidst changing interest rates, Circle’s CEO Jeremy Allaire discussed the impact on the stablecoin market in an interview with CNBC. In his opinion, the Federal Reserve changes interest rates as a tool to either increase or lower or to take a neutral position with respect to the velocity of money in the economy. According to the general view, lower interest rates are better for the markets as the cost of capital becomes less. He considers lower interest rates as a really good thing for a stablecoin issuer like Circle as more capital will be put to work and so the velocity of money will increase and so will the demand for stablecoin money.
Apart from the interest rates, positive news for the crypto industry has come after almost 2 years of the crypto exchange FTX collapse. According to the firm, former customers are to recover a sum worth nearly 119% of what their accounts had at the bankruptcy time. Regarding this, FTX’s current chief executive John. J. Ray III stated that:
“Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history”
Crypto and Elections 2024
With the upcoming 2024 election, the crypto world continues to look forward to what the candidates say about digital currency. After formerly railing against cryptocurrencies, Trump has embraced crypto as he announced the launch of a crypto banking platform World Liberty Financial. He has also expressed support for domestic Bitcoin miners saying that if crypto is going to define the future, he wants it to be mined, minted, and made in the US.
Many crypto enthusiasts are also welcoming Kamala Harris’s viewpoint on the topic. Harris said she would encourage innovative technologies like AI and digital assets during a fundraiser at Cipriani Wall Street. Commenting on this pro-crypto statement, CEO of cryptocurrency exchange Uniswap Hayden Adams, posted on X: “I believe this is her first time referencing crypto publicly and it’s in a positive way.”
Simultaneously, venture capitalist Ben Horowitz has decided to make a significant donation to Harris’s campaign. This move was a reversal from the previous when he and his business partner Marc Andreessen initially backed President Trump. In an internal letter reported by CNBC, Horowitz says that he has spoken to Harris regarding tech policies and believes that although Harris hasn’t revealed her intentions yet, he is hopeful about her administration being much better than the Biden administration which has been destructive to tech policy, especially crypto and AI.
Our Methodology:
In order to compile a list of the 7 most profitable cryptocurrency stocks to invest in, we created an initial list of 30 companies with the biggest market caps in the sector. Moving on, we shortlisted those that had a positive net income in the trailing twelve months. Finally, we ranked the shortlisted companies in ascending order of their trailing 12 months net income. The number of hedge fund holders has also been mentioned for each stock on the list.
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).
A close-up of a laptop with a Bitcoin ecosystem monitor running in the background.
Cipher Mining Inc. (NASDAQ:CIFR)
Number of Hedge Fund Holders: 15
TTM Net Income: $16.58 Million
Cipher Mining Inc. (NASDAQ:CIFR) is an industrial-scale Bitcoin mining company that remains dedicated to expanding and strengthening the Bitcoin network’s critical infrastructure in the United States. Cipher focuses on the development and operation of Bitcoin mining data centers in the country. The company was incorporated in 2020 and aims to be the market leader in Bitcoin mining growth and innovation.
Cipher Mining Inc. (NASDAQ:CIFR) is uniquely positioned to maximize opportunities in both Bitcoin mining and HPC infrastructure. The firm strategically expanded into the High-Performance Computing (HPC) business and holds the potential to become a market-leading HPC infrastructure provider.
During the month of September, the company focused on the upgrade of the mining fleet at Odessa which is anticipated to be completed by year-end. This will make Cipher have one of the most efficient fleets of mining rigs in the industry. The firm also progressed its construction of the new Black Pearl data center. September was also important as Cipher closed the acquisition of the 300 MW Barber Lake site, a purchase funded by the sale of bitcoin from its treasury. Hence, the firm exchanged a part of its bitcoin holdings for an asset that is expected to give extraordinary returns for shareholders over the passage of time.
On October 15, Cipher Mining Inc. (NASDAQ:CIFR) announced that the firm had signed option agreements to acquire 1.5 GW of data center sites in West and North Texas. These sites are suitable both for the development of HPC data centers or bitcoin mining operations. Cipher’s active portfolio and development pipeline will comprise 2.5 GW across 10 sites with the new sites added.
In conclusion, Cipher is a leading Bitcoin miner focusing on driving significant long-term shareholder value by developing HPC infrastructure complementary to its bitcoin mining business.
Overall, CIFR ranks 7th on our list of most profitable cryptocurrency stocks to invest in. While we acknowledge the potential of CIFR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CIFR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
