We recently compiled a list of the 10 Best Blockchain Stocks to Buy According to Analysts. In this article, we are going to take a look at where Bitfarms Ltd. (NASDAQ:BITF) stands against the other best blockchain stocks.
The blockchain market is experiencing various trends that continue to shape its future and expand the technology’s use cases across a range of sectors. The blockchain technology offers significant benefits, such as transparency and efficiency. According to a report by The Business Research Company, the global blockchain market was valued at $28.93 billion in 2024. The market is expected to grow significantly at a compound annual growth rate (CAGR) of 44.9% during 2025-2029 to reach a value of $216.82 billion by the end of the forecast period.
Crypto mining is also becoming very attractive and profitable, especially as the price of cryptocurrencies rises. Crypto mining companies verify and add transactions to the blockchain networks and earn crypto as rewards. Bitcoin reached a new high of $109,000 on January 20 and Bitcoin mining is becoming increasingly popular. As a result, there is an increase in demand for advanced infrastructure, such as data centers and mining equipment. This is driving investment in blockchain technology and services.
However, not all blockchain companies are focused on mining cryptocurrencies. Some of the companies involved in the blockchain space develop applications, provide services, or create new use cases by utilizing blockchain technology.
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Blockchain stocks may benefit greatly from the anticipated changes in US regulations under Trump’s administration and experts believe this may lead to a surge in institutional interest and investment in blockchain and crypto stocks.
Trump recently launched the “Official Trump” meme coin, which had risen to over a $10 billion market cap by the morning of January 20, according to CoinGecko, as reported by CNBC. Additionally, returning First Lady Melania Trump has also launched her own “Melania” meme coin.
Gracy Chen, CEO of crypto exchange Bitget, told CNBC that rumors about cryptocurrency being declared a national interest by the US have positively influenced the price of Bitcoin. She noted that the rise in Bitcoin’s price is not because of the launch of new meme coins. Instead, Chen said that without the release of the Trump family meme coins, Bitcoin’s price would have increased more as capital would not have shifted to new coins to limit overall growth.
Joel Kruger, market strategist at LMAX, believes that the coin launches by the Trump family gave traders further conviction that the new administration will be positive for the industry.
Methodology
To compile our list of the 10 best blockchain stocks to buy according to analysts, we looked for blockchain companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best blockchain stocks. Next, we focused on the top blockchain stocks that analysts believe have the most potential for growth. We ranked the 10 best blockchain stocks to buy based on their average price target upside potential according to analysts as of January 31, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 bustling server farm, reflecting the company’s investment into cryptocurrency mining.
Bitfarms Ltd. (NASDAQ:BITF)
Average Price Target Upside Potential According to Analysts: 210.34%
Number of Hedge Fund Holders: 14
Bitfarms Ltd. (NASDAQ:BITF) is a blockchain technology and Bitcoin mining company. It develops, owns, and operates vertically integrated data centers. The company manages its entire mining operations and utilizes its data centers to validate transactions on the Bitcoin blockchain and earn cryptocurrency rewards in the process. Bitfarms Ltd. (NASDAQ:BITF) currently has 12 operational data centers and 2 more under development across Canada, the US, Paraguay, and Argentina. BITF is one of the best blockchain stocks to invest in according to analysts.
The company is strategically focused on upgrading its fleet and expanding its operations, especially in the US. In August 2024, Bitfarms Ltd. (NASDAQ:BITF) announced its agreement to acquire Stronghold Digital Mining. This acquisition will increase the company’s energy capacity to more than 950 megawatts by the end of 2025. This will mark a significant shift that will see Bitfarms Ltd.’s (NASDAQ:BITF) operations in the US grow from 6% to approximately 66% of the company’s total capacity.
Additionally, the company is making good progress on its fleet upgrade program and added 5,400 miners during the third quarter of 2024. Bitfarms Ltd. (NASDAQ:BITF) also achieved its efficiency target of 21 watts per terahash (w/TH) 3 months ahead of schedule, reducing direct operating costs and improving gross margins. In Q3 2024, Bitfarms Ltd. (NASDAQ:BITF) earned 703 BTC and averaged 7.6 BTC per day in daily production.
Overall, BITF ranks 1st on our list of the best blockchain stocks to buy according to analysts. While we acknowledge the potential of BITF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BITF 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.
