Crypto stocks have fallen significantly off their peaks as Bitcoin (BTC-USD) cools. Many crypto investors hoped that Trump’s crypto national reserve announcement would be followed up by news announcing that the U.S. government will start buying BTC like El Salvador did to prop up these reserves.
Instead, the government will likely create the reserve out of previously seized cryptocurrencies from criminals. This led to Bitcoin falling even further. The biggest impact of this was on Bitcoin miners. These companies make a significant amount of their revenue from mining or stockpiling large amounts of Bitcoin and then benefiting from the increases in value as it also increases their assets on the balance sheet.
However, with Bitcoin cooling off recently and crypto mining companies not having that big of a spike in the current cycle, many have started to plunge significantly.
A series of cryptocurrency ASIC chips connected together in a vast mining facility.
Methodology
For this article, I screened the worst-performing crypto-related stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
15. Cipher Mining Inc (NASDAQ:CIFR)
Number of Hedge Fund Holders In Q4 2024: 23
Cipher Mining Inc (NASDAQ:CIFR) is a company that mines Bitcoin on an industrial scale in the U.S. It is expanding into high-performance computing services.
The stock is down significantly so far in 2025 as Cipher Mining announced plans to sell up to 10.44 million shares of common stock. This raised concerns about shareholder dilution.
It also shut down its Odessa facility for annual high-voltage electrical maintenance. It was brief and successfully done, but investors were spooked about the production capacity.
Plus, it reported that it sold 471 BTC in January. This reduced its holdings to 1,091 BTC.
The consensus price target of $8.13 implies 108.9% upside.
CIFR stock is down 16.16% year-to-date.
14. Bitfarms Ltd (NASDAQ:BITF)
Number of Hedge Fund Holders In Q4 2024: 15
Bitfarms Ltd (NASDAQ:BITF) is a Bitcoin mining company. It operates vertically integrated mining farms across Canada, the U.S., Paraguay, and Argentina.
The stock is down significantly so far in 2025 due to rising energy costs that impacted the company’s profitability. Higher energy costs had an amplified impact on the company due to the crypto market’s correction.
Bitfarms reported increased operating losses in recent quarters, which has also worried investors.
On top of that, Bitfarms restated some previously issued financial statements and this hasn’t helped shareholder trust.
The consensus price target of $4.05 implies 226.61% upside.
BITF stock is down 16.78% year-to-date.