We recently published a list of 8 Best Crypto and Blockchain Stocks To Buy According to Analysts. In this article, we are going to take a look at where Bit Digital, Inc. (NASDAQ:BTBT) stands against other best crypto and blockchain stocks to buy according to analysts.
The Global Blockchain Technology Market
The global blockchain technology market is expected to undergo significant growth in the coming years. According to Fortune Business Insights, the global blockchain technology market was valued at $17.5 billion in 2023 and is expected to experience a compound annual growth rate (CAGR) of 59.9% between 2023 and 2030. This growth is anticipated to take the market to a valuation of $469.49 billion by the end of the forecast period.
The increasing adoption of blockchain technology in the financial and retail sectors is one of the primary drivers behind this growth trajectory, with another being the expanding acceptance of cryptocurrencies across the globe. Additional propellers such as Blockchain as a Service (BaaS) services are further buoying the sector. BaaS services allow small and medium sized enterprises (SMEs) to explore blockchain applications without bringing in the complexity of in-house development.
Cryptocurrencies have played a pivotal role in the trends in the blockchain industry, incentivizing blockchain infrastructure development and boosting innovation in privacy and scalability. Diverse blockchain applications are emerging in the market, including supply chain management, trade finance, cross-border payments, lot lineage/provenance, and identity management.
Blockchain and Crypto: the Golden Post-Election Scenario
Blockchain technology enables the existence of cryptocurrency, among other things. Like a digital ledger, it records and confirms cryptocurrency trades. Behind the most popular cryptocurrency, Bitcoin, is a blockchain called the Bitcoin blockchain. Bitcoin has been regularly hitting fresh records post-election. Other cryptocurrencies like Dogecoin, the favorite coin of strong Trump supporter Elon Musk, are also posting gains, as reported by BBC.
According to analysts, much of these recent gains are due to an anticipated crypto-friendly nature of the upcoming Trump administration, which may translate into more regulatory clarity but also some leeway. This may include a potential national strategic bitcoin reserve or stockpile, and supportive regulations for the industry.
On November 11, MacKenzie Sigalos appeared on CNBC’s ‘Squawk Box’ to talk about Bitcoin’s post-election rally. She said that most Bitcoin miners are seeing double-digital percentage gains, painting a positive picture for Bitcoin and blockchain stocks. The wider crypto market is also seeing outsized gains.
Sigalos reminded that Donald Trump promised the mining of all future Bitcoin in the US, pledging to rapidly build out the country’s energy production and transmission infrastructure, which she claims is a great thing for power-hungry miners. This is one of the multiple commitments made by the President to the crypto industry on the campaign trail, along with firing SEC Chair Gary Gensler and launching a national crypto stockpile. Overall, the administration is anticipated to be crypto-friendly, painting a favorable picture for investors.
Our Methodology
We sifted through online rankings and ETFs to list the top crypto and blockchain stocks. We then selected 8 stocks with the highest upside potentials that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their analysts’ upside potential as of November 23, 2024. We also included the number of hedge fund holders for each company as of fiscal Q3 2024, sourced from Insider Monkey’s database.
Why are we interested in 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 team of technicians working on a server of bitcoin mining equipment in a data center.
Bit Digital, Inc. (NASDAQ:BTBT)
Analyst Upside: 40.85%
Number of Hedge Fund Holders: 6
Bit Digital, Inc. (NASDAQ:BTBT) is a holding company that provides a platform for digital assets and artificial intelligence infrastructure. Headquartered in New York City, the company’s Bitcoin mining operations are located in the United States, Iceland, and Canada. Its business line, Bit Digital AI, offers infrastructure services for AI applications. The primary intent of its mining platform and facilities is to accumulate Bitcoin. The company also introduced ETH staking to power the Ethereum blockchain.
In October, the company announced the acquisition of Enovum, an owner, operator, and developer of high performance computing data centers, for around $46 million. The deal proved transformational for Bit Digital, Inc. (NASDAQ:BTBT) as it vertically integrated the company’s HPC operations with a fully operational and fully leased Tier 3 data center. The company added colocation as a new revenue line and business, along with a solid mix of prospective and existing customers. The acquisition also allowed it a strong pipeline of expansion site opportunities and an experienced team to lead the development process.
Bit Digital, Inc. (NASDAQ:BTBT) is pushing forward with its development pipeline and anticipates to add 8 megawatts by fiscal Q2 2025 and reach a total of 32 megawatts by the end of the year. The company is likely to dedicate a portion of the near-term megawatts to Bit Digital GPUs. It ranks fourth on our list of the 8 best crypto and blockchain stocks to buy according to analysts.
Overall, BTBT ranks 4th on our list of best crypto and blockchain stocks to buy according to analysts. While we acknowledge the potential of blockchain stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BTBT 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.