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3 Blockchain Stocks That Will Print You Money This Cycle
Cryptocurrencies have been booming in recent times, and things are only getting better every day in this market. As I write this, Bitcoin (BTC-USD) surpassed the $56,000 mark for the first time in over two years. This move leads me to believe that a new all-time high may be within our reach, even before the next halving event kicks things into high gear.
I’ve said repeatedly over the past year that cryptocurrencies have explosive upside potential in 2024 thanks to several key catalysts: the launch of spot ETF products, the upcoming Bitcoin halving, and interest rate cuts likely around the middle of this year. Although the halving and rate cuts are still to come, the approval of spot ETFs has already injected billions of dollars into Bitcoin, and more capital is likely to be invested in the digital assets in more wide.
In this environment, I think it makes sense to invest in blockchain stocks, as these companies often offer even higher returns than the cryptocurrencies themselves. Many of these companies hold huge reserves of Bitcoin and patiently wait for Bitcoin to rise before selling. With Bitcoin looking poised to reach new highs in the coming months as this uptrend continues, conditions appear perfect for these stocks to soar.
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Riot Control Platforms (RIOT)
In this photo illustration, the Riot Platforms (RIOT) logo is displayed on the screen of a smartphone.
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Riot platforms (NASDAQ:RIOT) is by far the best blockchain title, in my opinion. The company uses subsidies to mine Bitcoin at some of the most profitable rates in the industry, generating significant profits. Notably, Riot has stockpiled a significant amount of Bitcoin and acquired numerous mining rigs, positioning the company to potentially generate multi-bagger returns if this bull run continues.
In 2023, Riot achieved record financial results, including a record $281 million in total revenue, 6,626 Bitcoins mined, and $71 million in energy credits earned through the company’s unique energy strategy. Additionally, Riot produced an additional 520 Bitcoins in January 2024. The company ended 2023 with $597 million in cash, and taking into account January’s production, Riot now has 7,648 Bitcoins in its reserves, worth ‘approximately $428 million in addition to its significant cash reserves.
This reserve could end up being worth a lot more in the coming months. So, I’m incredibly optimistic about Riot’s long-term prospects.
Digital bit (BTBT)
Cryptocurrency mining machines
Relatively lesser-known competitor to Riot Platforms, Digital bit (NASDAQ:BTBT) is a Bitcoin miner that I believe has huge upside potential. Dark miners often see huge gains in cryptocurrency bull markets. This factor alone could lead to outsized gains if this rally continues.
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As of January 2024, Bit Digital was operating with a hash rate of 2.50 exahashes per second (EH/s). In January, the company produced 145.7 Bitcoinsa 14% decline from December 2023 due to temporary disruptions to mining rigs which have since been resolved.
That said, as of January 31, 2024, Bit Digital held approximately 739 Bitcoins and over 18,072 Bitcoins. Ethereum (ETH-USD), valued at $41 million and $58 million respectively. The company’s total digital assets were equivalent to approximately 1,739 Bitcoins.
Bit Digital has actively staked a significant portion of its Ether holdings using native and liquid staking protocols. As of January 2024, the company has staked nearly 12,800 Ether and earned combined annual staking rewards of 3.69%.
Additionally, Bit Digital continues to work to develop its advanced mining hardware at an aggressive pace. With mining disruptions resolved and increased capacity coming online ahead of the halving, Bit Digital appears very well positioned to capitalize on the upcoming tailwinds.
Hive Blockchain (HIVE)
Bitcoin on a microprocessor in a motherboard. With copy space and selective focus. 3D rendered banner illustration. Concept for crypto currency, mining, technology, investment, finance, crypto mining stocks
Source: Gaston Cerliani / Shutterstock.com
Hive Blockchain (NASDAQ:HIVE) is another lesser-known blockchain stock with immense upside potential. Hive Digital recently announced the purchase of 1,000 Antminers Bitmain S21, which will provide 200 petahash per second of high-efficiency Bitcoin mining capacity. The S21 is Bitmain’s newest and most efficient Bitcoin mining system, with 17.5 joules per terahash.
Additionally, Hive now has 2,070 Bitcoins on its balance sheet as of February 21, 2024. Hive is strategically preparing for the Bitcoin halving event in late April 2024. This company appears well positioned to benefit from the upcoming halving as the price of Bitcoin continues to skyrocket. . Hive owns 100% of the Bitcoin it mines, so I believe it is on track to maximize gains during this bull cycle.
As of the date of publication, Omor Ibne Ehsan did not hold (neither directly nor indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor who focuses on growth and cyclical stocks that have strong fundamentals, value and long-term potential. He is also interested in high-risk, high-return investments such as cryptocurrencies and penny stocks. You can follow it LinkedIn.
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