3 Top Crypto Stocks to Buy to Ride Bitcoin’s Furious Rally

Wednesday at 06:18 AM

The price of Bitcoin has skyrocketed since election day.
These three crypto-related stocks have also jumped over the past week.
Two of these stocks are pure play crypto stocks, while one is more diversified.

These 3 stocks all invest heavily in the cryptocurrency space and are poised for a run.

In case you haven’t noticed, cryptocurrency has been on a tear since Donald Trump was elected president last week, as Trump has promised to be a strong advocate for crypto.

The price of has surged almost 32% to nearly $90,000 since election day, while has jumped about 37% to roughly $3,300.

There are some stocks that are heavily engaged in crypto that should benefit from a continued surge in this space, as the new administration is expected to adopt more crypto friendly policies.

Here are three of the best crypto-related stocks to consider.

1. Coinbase Global

Coinbase Global (NASDAQ:) is one of the largest and most trusted cryptocurrency trading exchanges in the world. The company saw revenue climb 81% year-over-year in the third quarter to $1.13 billion, while net income rose to $75 million, up from a $2 million net loss in the same quarter a year ago.

Transaction revenue accounted for about $572 million of the total, up from $286 million in the same quarter a year ago. However, it was down from $781 million in Q2 as trading volume dropped 18% to $185 billion.

But trading volume should spike in the fourth quarter, and beyond, as crypto investing is expected to become more prevalent in the Trump administration. And as a first mover in the space, with a high trust score, it should pick up a lot of new investors.

Coinbase stock price is up about 85% YTD and most of those gains have come in the past week, when it surged more than 60%. The valuation has spiked with the P/E jumping to 55, so investors should keep an eye on that. I would not be shocked to see the price settle a bit after the huge runup, so wait for a dip to buy. But with a five-year PEG of 1.1, it has a fairly reasonable long-term valuation.

2. Marathon Digital

Marathon Digital (NASDAQ:), or MARA Holdings, as it is now called, is a digital asset company that mines cryptocurrencies, and is considered one of the leaders in Bitcoin mining.

With Bitcoin expected to surge higher over the coming months and years, Marathon should be a major beneficiary. Before the election, the company issued an update for October, saying it had its best month for Bitcoin production since the halving event last April.

In October, Bitcoin production grew 2% from September to 717, while the energized hash rate rose 14% to 40.2.

“We believe that our proprietary technology platforms such as Slipstream and MARAPool, our proprietary mining pool, allow us to capture all potential benefits and take advantage of higher transaction fees as they arise,” MARA Chair and CEO Fred Thiel said. “Our 50 EH/s target by the end of 2024 is within sight as we steadily increase our hash rate by installing new miners, improving infrastructure and energizing additional immersion containers.”

MARA stock has jumped about 60% since election day, rising to around $24 per share. But it is only up about 2% YTD and is still relatively cheap, with a low entry price and a P/E ratio of just 27.

It reports Q3 earnings today, Nov. 12, after the market closes, so tune in for more on its outlook.

3. BlackRock

Some investors might not think of BlackRock (NYSE:), the world’s largest asset manager, as a crypto stock, but its is one of the largest corporate owners of Bitcoin in the world, through its iShares Bitcoin Trust (NASDAQ:).

BlackRock owns about 450,000 Bitcoin, which is worth about $39 billion, and the iShares Bitcoin Trust is the largest spot Bitcoin ETF.

As of last Friday, the ETF had amassed $34 billion in assets under management, with about $1 billion flowing in last week alone. The ETF has only been on the market since January and it has already surpassed the iShares Gold Trust (NYSE:), a leading commodity ETF that has been around since 2005.

BlackRock stock will certainly benefit from the rise in Bitcoin, as well as Ethereum, as it also has a spot Ethereum fund, the iShares Ethereum Trust ETF (NASDAQ:). But as the world’s largest asset manager, it is a broadly diversified company that may not be as volatile as some of the other pure crypto stocks.

Investors should expect short-term volatility and proceed cautiously with crypto investments, keeping allocations relatively low and part of a broadly diversified portfolio.

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