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.
13. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders In Q4 2024: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company, and AMD’s GPUs are widely used to mine Bitcoin and other cryptos.
The stock is down significantly so far in 2025 due to disappointing Q4 2024 data center revenue metrics. Data center revenue grew 69% year-over-year to $3.86 billion but missed analysts’ expectations of $4.14 billion.
AMD has struggled to compete with Nvidia in the AI chip market. Nvidia’s dominance in AI training workloads and its rapid growth have overshadowed AMD’s progress in AI inference chips.
Plus, the broader data center/AI industry has been falling significantly due to concerns about AI profitability, especially after Microsoft canceled some of its data center contracts.
The consensus price target of $155.83 implies 55.35% upside.
AMD stock is down 16.96% year-to-date.
12. PayPal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders In Q4 2024: 94
PayPal Holdings Inc. (NASDAQ:PYPL) is a household name, and this fintech company also allows people to buy crypto within its platform.
The stock is down significantly so far in 2025 due to PayPal missing Q4 2024 earnings. It came in at $1.21 billion compared to the $1.44 billion consensus. Revenue grew 4% year-over-year to $8.37 billion and fell short of the market’s expectations for profitability growth.
Net income was also down 20% year-over-year, and PayPal issued weaker-than-expected guidance for 2025. Adjusted EPS projections for Q1 and full-year 2025 were significantly below analyst estimates.
Analyst downgrades soon followed.
The consensus price target of $90 implies 27.74% upside.
PYPL stock is down 17.42% year-to-date.
11. The9 Ltd ADR (NASDAQ:NCTY)
Number of Hedge Fund Holders In Q4 2024: 1
The9 Ltd ADR (NASDAQ:NCTY) is a crypto mining business that provides power to Bitcoin mining pools in exchange for fractional shares of Bitcoin. It has diversified into AI in recent years.
The stock is down significantly so far in 2025 as there are concerns over revenue growth stagnation, especially as both AI and crypto narratives slow. The company’s valuations are looking too high compared to the lower growth outlook.
This is a Chinese company, so investors were also spooked by new Chinese regulations on crypto at the start of the year.
NCTY stock is down 17.88% year-to-date.
10. Riot Platforms Inc (NASDAQ:RIOT)
Number of Hedge Fund Holders In Q4 2024: 38
Riot Platforms Inc (NASDAQ:RIOT) is one of the most well-known Bitcoin mining companies.
The stock is down significantly so far in 2025 as Bitcoin’s price has declined to about $83,400 (as of writing).
Earlier in February, Bitcoin’s price dipped below $95,000 and caused broader market anxiety. This also caused Riot Platform’s stock to decline.
Moreover, Riot announced it would halt the expansion of its Bitcoin mining operations at the Corsicana facility to explore AI and high-performance computing (HPC) opportunities. It reduced the company’s projected hash rate capacity for 2025 from 46.7 EH/s to 38.4 EH/s.
The consensus price target of $17.45 implies 108.54% upside.
RIOT stock is down 18.02% year-to-date.
9. Argo Blockchain Plc ADR (NASDAQ:ARBK)
Number of Hedge Fund Holders In Q4 2024: 1
Argo Blockchain Plc ADR (NASDAQ:ARBK) is a crypto mining company with operations in Quebec and Texas.
The stock is down significantly so far in 2025 due to it receiving a non-compliance notice from Nasdaq due to its share price trading below $1.00 for 30 consecutive business days. The company has until July 15, 2025. If it doesn’t surpass $1 by then, it could be delisted. The company could do a reverse stock split to avoid that.
Argo reported a year-over-year revenue decline of 28.34% for the quarter ending on September 2024, coupled with a net loss of $6.28 million for the quarter.
Moreover, Argo announced a non-binding term sheet for up to $40 million in senior secured convertible loans to refresh its mining fleet and support potential mergers and acquisitions. This is going to improve the balance sheet, but it includes warrants, and investors are worried about dilution.
The consensus price target of $1.45 implies 222.22% upside.
ARBK stock is down 20.35% year-to-date.
8. Ebang International Holdings Cl A (NASDAQ:EBON)
Number of Hedge Fund Holders In Q4 2024: 2
Ebang International Holdings Cl A (NASDAQ:EBON) is a company that sells Bitcoin mining machines and also makes blockchain-related financial services.
The stock is down significantly so far in 2025 as its revenue has been declining, and the company has failed to benefit from the increase in Bitcoin’s price in a meaningful way. Revenue declined 48.3% for the quarter that ended in June 2024 to $1.06 million.
On the other hand, net losses were at $3.11 million. The stock has also declined even more since Bitcoin has reversed course, and there doesn’t seem to be accelerating orders for Bitcoin mining machines as crypto miners have started to focus on AI and high-performance computing hardware instead.
EBON stock is down 20.98% year-to-date.
7. Iren Limited (NASDAQ:IREN)
Number of Hedge Fund Holders In Q4 2024: 44
Iren Limited (NASDAQ:IREN) is mainly a crypto mining company. It is also trying to rebrand itself as an AI cloud services company.
The stock is down significantly so far in 2025 due to the broader crypto market declining and the company announcing a $1 billion at-the-market facility to fund expansion projects.
Moreover, the company has posted profits in Q4, but it is unlikely to keep being profitable if Bitcoin doesn’t make a substantial recovery.
The dilution has been significant here. The company’s outstanding shares amounted to about 55 million in Q1 2023. As of Q4 2024, that number sits at 213.5 million. Thus, there’s a good chance that shareholders face continuous dilution going forward.
That $1 billion at-the-market equity offering is not going to make dilution any better.
The consensus price target of $20.7 implies 168.83% upside.
IREN stock is down 21.59% year-to-date.
6. BIT Mining Ltd (NYSE:BTCM)
Number of Hedge Fund Holders In Q4 2024: 1
BIT Mining Ltd (NYSE:BTCM) is a Bitcoin mining company that also operates data centers.
The stock is down significantly so far in 2025 after BIT Mining shareholders approved an increase in share capital to $440,000. This created 6.8 billion Class A ordinary shares.
BIT Mining also reported Q4 2024 revenues of $8.8 million, down from $10.4 million in Q4 2023. Operating losses remained significant at $2.5 million.
There was also a power outage at BIT Mining’s Ohio data center. It disrupted operations temporarily.
BTCM stock is down 21.83% year-to-date.
5. Hive Digital Technologies Ltd (NASDAQ:HIVE)
Number of Hedge Fund Holders In Q4 2024: 13
Hive Digital Technologies Ltd (NASDAQ:HIVE) is a Bitcoin mining company.
The stock is down significantly so far in 2025 since HIVE’s revenue fell to $29.2 million from $31.3 million in the year-ago quarter in its Q3 FY2025 report. It posted a net profit of $1.3 million and reversed a prior loss, but analysts likely wanted to see blowout figures.
And since HIVE is one of the biggest Bitcoin miners, the BTC price correction has impacted it quite significantly. HIVE also sold portions of its Bitcoin holdings to fund capital investments, reducing its HODL portfolio month-over-month.
The consensus price target of $7.79 implies 289.29% upside.
HIVE stock is down 29.82% year-to-date.
4. Hut 8 Corp (NASDAQ:HUT)
Number of Hedge Fund Holders In Q4 2024: 34
Hut 8 Corp (NASDAQ:HUT) is a vertically integrated energy infrastructure operator and Bitcoin mining company.
The stock is down significantly so far in 2025 due to Hut 8 reporting a sharp reduction in its Bitcoin mining output in February 2025. It produced only 46 Bitcoins compared to 65 in January.
This was due to a decrease in the deployed hash rate from 5.0 EH/s to 4.6 EH/s, compounded by a 3.7% increase in the average network hash rate.
In January, Hut 8 experienced operational downtime during infrastructure upgrades and implemented dynamic curtailment at its Alpha site due to elevated power prices. These disruptions also somewhat spooked investors.
The consensus price target of $29.89 implies 121.24% upside.
HUT stock is down 34.07% year-to-date.
3. Grayscale Ethereum Trust ETF (NYSEARCA:ETHE)
Number of Hedge Fund Holders In Q4 2024: 9
Grayscale Ethereum Trust ETF (NYSEARCA:ETHE) is a company that allows investors to gain exposure to Ethereum (ETH-USD) without owning the cryptocurrency directly.
The stock is down significantly so far in 2025, as ETHE reported zero daily flow. There’s a lack of investor confidence or interest in the ETF.
This is mostly because Ethereum did not outperform Bitcoin in the current cycle, and there hasn’t been a big “alt season” yet. As a result, Bitcoin ETFs have dominated the traditional stock market.
Also, Grayscale’s management fee of 2.5% for ETHE remains significantly higher than competing Ethereum ETFs.
On February 14, 2025, NYSE Arca filed a proposal to amend ETHE to allow the staking of its Ether holdings.
ETHE stock is down 35.76% year-to-date.
2. TeraWulf Inc (NASDAQ:WULF)
Number of Hedge Fund Holders In Q4 2024: 43
TeraWulf Inc (NASDAQ:WULF) owns Bitcoin mining facilities powered by zero-carbon energy sources.
The stock is down significantly so far in 2025, as TeraWulf reported revenue of $140.1 million for 2024. This missed analysts’ expectations of $142.4 million.
Moreover, its loss per share was $0.21, significantly worse than the projected $0.15 loss. This earnings miss led to a sharp decline in investor confidence.
Analysts have now revised their revenue forecast for TeraWulf in 2025 from $287 million to $250 million and shifted their EPS projection from a profit of $0.13 to a loss of $0.023.
The consensus price target of $8.64 implies 140.08% upside.
WULF stock is down 36.40% year-to-date.
1. Canaan Inc ADR (NASDAQ:CAN)
Number of Hedge Fund Holders In Q4 2024: 16
Canaan Inc ADR (NASDAQ:CAN) is a Singapore-based tech company specializing in integrated Bitcoin mining circuits.
The stock is down significantly so far in 2025 after new crypto restrictions in China impacted the company’s market prospects.
And obviously, crypto miners haven’t delivered the best performance in the past few months. They have scaled back their crypto expansion plans and are focusing on HPC and AI.
As a result, Canaan reported a gross loss for Q4 2024, with revenues of $89 million failing to offset operational costs. This resulted in a narrowed gross loss between $6 million and $10 million, but it is still very unprofitable.
The consensus price target of $4.33 implies 241.21% upside.
CAN stock is down 38.05% year-to-date.
While we acknowledge the potential of CAN 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 CAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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