As investors warm up to cryptocurrencies, should you be keeping tabs on crypto stocks?
Are These The Best Crypto Stocks To Watch Now?
As investors look for the next bullish industry in the stock market today, crypto stocks would often be on the list. After all, we are seeing an increase in cryptocurrency adoption over the past year. Just picture a few years back, not many would have thought that digital currencies could purchase real-world goods. It has come to a point where some companies all around the world are now accepting crypto as a payment method.
Even retail giant Walmart (NYSE: WMT) appears to be dipping its toes in cryptocurrency. The company is looking for an experienced crypto expert who can develop and drive an ambitious digital currency strategy and roadmap. And Walmart is not the only company looking to bring digital currency into its wider business strategy. Earlier this year, Amazon (NASDAQ: AMZN) also posted a job listing for a leader to oversee its new digital currency service in Mexico.
Also, fintech giants such as Paypal Holdings Inc (NASDAQ: PYPL) are offering their customers a new way to utilize their cryptocurrency holdings to pay for select online purchases. With its Checkout with Crypto feature, consumers can now easily convert cryptocurrency to fiat currency at checkout with no additional transaction fees. Well, it is undeniable that cryptocurrencies are slowly gaining recognition whether we like it or not. Therefore, if you’re interested in having exposure to the industry, why not invest in companies dealing with cryptocurrencies? With that in mind, here are four of the top cryptocurrency stocks you may want to consider watching in the stock market this week.
Best Crypto Stocks To Buy [Or Avoid] This Week
- Coinbase Global Inc (NASDAQ: COIN)
- Square Inc (NYSE: SQ)
- Marathon Digital Holdings Inc (NASDAQ: MARA)
- Riot Blockchain Inc (NASDAQ: RIOT)
Coinbase Global Inc
Let us kick start the list with one of the largest cryptocurrency exchanges in the world, Coinbase. Put simply, it is a financial technology company that provides end-to-end financial infrastructure. It primarily focuses on building a crypto-economy that leverages crypto and digital assets that are built using blockchain technology. COIN stock has been up by 16% over the past month.
Last week, the company announced its second-quarter earnings. Coinbase reported revenue of $2.03 billion, up by a whopping 1040% year-over-year. In line with this, it has also exceeded all expectations in terms of its earnings. The company’s net profit was $1.6 billion, up by almost 4900% year-over-year. These results are highly impressive and show us that the adoption of cryptocurrencies is increasing by the day.
To illustrate this, we can see that the company’s platform trading volume increased from $335 billion to $462 billion quarter-over-quarter. Meanwhile, its monthly transacting users grew to 8.8 million, up 44% from the previous quarter. There is also an increase in diversity with a total number of 83 tradeable cryptocurrencies on its platform. Overall, the company is firing on all cylinders as it welcomes more crypto investors and traders to its platform. With this in mind, would you consider watching COIN stock?
Following that, we have a company that runs a commerce ecosystem, Square. Many would know of the Cash App as a digital wallet, but it also allows users to buy, sell, store, withdraw, and deposit bitcoins. Some may argue that the Cash App is the simplest and most user-friendly place to deal with Bitcoin. SQ stock has been on the radar of many investors and with good reasons. It has risen by more than 75% over the past year.
In the company’s second-quarter earnings report, Bitcoin played an integral part in its successful quarter. The company’s Cash App service’s bitcoin revenue for the quarter tripled to $2.72 billion from $875 million the prior year. Meanwhile, its gross profit jumped to $55 million from $17 million. Naturally, the company has benefited from the year-over-year increase in the price of bitcoin and bitcoin activities in customer demand.
Not only that, the company also announced back in July that it will be building a decentralized finance business using bitcoin. Square’s CEO Jack Dorsey claims on Twitter that the company is “focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services”. As it stands, the new unit will include the Seller, Cash App, and recently acquired Tidal businesses. Given these exciting developments, would you consider SQ stock as one of the top crypto stocks to place on your watchlist?
Marathon Digital Holdings Inc
Next up, we have the digital asset technology company Marathon Digital. Essentially, the company mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. As cryptocurrencies gained traction among investors, MARA stock also naturally followed suit. The company’s stock has risen by more than 750% over the past year.
Earlier this month, Marathon entered into a contract with Bitmain to purchase an additional 30,000 Antminer S19j Pro miners for $120.7 million. As a result, we could expect the company’s mining operations to consist of more than 133,000 Bitcoin miners, producing approximately 13.3 EH/s once all miners are fully operational. Also, by increasing its percentage of the total network’s hash rate, it would increase the company’s probability of earning bitcoin.
On top of that, the company also posted an impressive second-quarter financial update last Friday. Its total revenue increased to $29.3 million, up by 220% compared to the first quarter of 2021 and a staggering 10,147% increase year-over-year. Meanwhile, Marathon produced 654 newly minted bitcoins for the quarter. Overall, the company has been growing at an exponential rate. So, would you consider adding MARA stock to your watchlist?
Riot Blockchain Inc
Riot Blockchain is a company that focuses on gaining exposure to the blockchain ecosystem through its cryptocurrency mining operations. Through its current strategy, Riot is looking to become one of the largest, low-cost producers of Bitcoin in North America.
Last Wednesday, the company announced its July production and operations updates. For the month of July 2021, Riot produced 444 BTC, an increase of a whopping 771% year-over-year. As it stands, the company has produced a total of 1610 BTC this year, representing an increase of 188% over its BTC production during the same 2020 period.
Besides that, Riot also provided an infrastructure and hash rate growth update. It appears that the construction of four additional buildings, totaling approximately 240,000 sq/ft, has commenced at the Whinstone site. So, by the fourth quarter of 2022, the company anticipates a self-mining total hash rate capacity of 7.7 EH/s. This demonstrates the company’s commitment to building one of the largest and most efficient Bitcoin mining fleets in the industry. All things considered, would RIOT stock be worth watching?
Originally Posted on August 16, 2021 – 4 Crypto Stocks To Watch Before September 2021
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