We recently compiled a list of the 7 Best Bitcoin Stocks To Buy Right Now. In this article, we are going to take a look at where Iris Energy Limited (NASDAQ:IREN) stands against the other bitcoin stocks.
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.
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).
A table full of technology, with bitcoin mining rigs and a laptop showing a financial graph.
Iris Energy Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 38
Iris Energy Limited (NASDAQ:IREN) owns, builds, and operates data centers and electrical infrastructure to mine Bitcoin. The company’s business model has been built on sustainably-mined Bitcoin. As a sustainable Bitcoin miner, the company’s sites are powered by 100% renewable energy. The company’s facilities are optimized for Bitcoin mining, AI cloud services, and other power-dense compute.
The firm is unique since it uses low-cost excess renewable energy to keep costs low, support communities, and solve the energy market challenges. Iris has a solid portfolio comprising 260MW of operating data centers while it has plans to expand to 510MW in 2024. Recently in July, the company secured an additional 150MW of immediately available power capacity at its Childress site which raised its total secured grid-connected power capacity to 2,310MW. Among its peers, Iris qualifies as a large-scale miner with its strong Bitcoin mining hashrate.
A comparison between FY 2024 and FY 2023 reveals a 66% rise in operating hashrate, a 29% rise in BTC mined, and an overall increase in Bitcoin mining revenue from $75.5 million to $184.1 million. For the full year ended June 30, Iris saw growth across its revenue, earnings, and cash flow. In Bitcoin mining, the firm remains set to achieve 30 exahashes per second by the end of this year. Simultaneously, the revenue for AI cloud services continues to scale.
Iris Energy Limited (NASDAQ:IREN) is one of the largest publicly listed Bitcoin miners which has a robust portfolio and strong growth potential thereby ranking on our list. As of Q2, the stock is held by 38 hedge funds. Castle Hook Partners is the dominant shareholder in the company with a position worth $77.5 million.
Overall IREN ranks 3rd on our list of the best bitcoin stocks to buy. While we acknowledge the potential of IREN 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 IREN 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.
