We recently published a list of 13 Best Cryptocurrency Stocks to Buy Now. In this article, we are going to take a look at where Riot Platforms Inc (NASDAQ:RIOT) stands against other best cryptocurrency stocks to buy now.
Cryptocurrency stocks are on the move in the aftermath of US President Donald Trump announcing plans for a “Crypto Strategic Reserve.” The possibility of a cryptocurrency reserve is a significant step toward Trump’s goal of making the United States the global center of cryptocurrency.
The United States already possesses several strategic stockpiles, such as medical and military assets. In times of need, the government draws from these unique reserves. To keep the Federal Reserve afloat, the government would probably be actively purchasing and disposing of cryptocurrencies as part of the strategic reserve push.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
Additionally, some Bitcoin holders think that a cryptocurrency reserve may act as an inflation hedge. They contend that at times of global economic crisis, the value of Bitcoin may surpass that of the dollar, citing the currency’s declining worth over time. However, cryptocurrencies have shown to be highly volatile during recent geopolitical events, like Russia’s invasion of Ukraine. Additionally, some experts believe that the US government purchasing Bitcoin could endanger the dollar’s standing internationally.
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Critics contend that cryptocurrency is a speculative investment and has historically been volatile, while proponents claim that the proceeds may be used to pay down the country’s massive debt. Approximately 200,000 Bitcoin tokens are thought to be held in the United States due to illegal seizures. The total value of that exceeds $17 billion. With a reserve, these holdings might be expanded to include three lesser-known cryptocurrencies, XRP, Solana, and Cardano, in addition to Ethereum.
Amid the “crypto strategic reserve” push, cryptocurrency stocks’ popularity is growing as investors explore ways of diversifying their investment portfolio beyond traditional asset classes. The stocks stand out partly because they offer crypto exposure without requiring one to own the underlying volatile crypto asset. Additionally, the stocks provide both growth potential and innovation. Many experts regard them as being safer than direct cryptocurrency investments.
Our Methodology
To determine the 13 best cryptocurrency stocks to buy now, we analyzed the US market for companies with exposure to cryptocurrencies and blockchain technology. Our in-depth analysis focused on firms with solid prospects due to their investments in cryptocurrencies and the underlying technology. We reviewed ETFs and financial media reports to compile a preliminary list. Finally, we ranked the stocks in ascending order based on the hedge fund stakes in them during Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A computer engineer working in a futuristic office, programming algorithms to mine cryptocurrency.
Riot Platforms Inc (NASDAQ:RIOT)
Average Upside Potential as of March 11: 145.37%
Number of Hedge Fund Holders: 37
Riot Platforms Inc (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure company that designs, manufactures, and installs electrical products and services. The company also designs and manufactures power distribution equipment and custom-engineered electrical products.
Riot Platforms Inc (NASDAQ:RIOT) experienced an extraordinary year in 2024, achieving a record revenue of $376.7 million along with a net income of $109.4 million. Additionally, the company recorded an unprecedented adjusted EBITDA of $463.2 million for 2024, highlighting the effectiveness of the Bitcoin treasury strategy, which focuses on retaining Bitcoin production instead of selling. The year 2024 was characterized by significant growth initiatives coming to fruition, such as the activation of the Corsicana Facility.
Riot Platforms Inc (NASDAQ:RIOT) also acquired Block Mining and E4A Solutions, a prominent electrical engineering services company, to complement its engineering division and Bitcoin mining activities. These growth strategies and greatly improved operational performance led to Riot mining 4,828 Bitcoins at an average direct cost of $32,216 per coin. In 2025, Riot Platforms plans to broaden its AI and HPC division, focusing on its Corsicana facility as it looks to diversify and strengthen its revenue base beyond cryptocurrencies.
Overall, RIOT ranks 6th on our list of best cryptocurrency stocks to buy now. While we acknowledge the potential of RIOT as an investment, our conviction lies in the belief that 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 RIOT 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.
