Tap into Bitcoin’s Bull Market with these 3 Crypto Stocks

Bitcoin has been the best-performing asset over the past decade and its performance has shown little sign of declining; Some leading crypto stocks are also declining.

The world’s first and largest cryptocurrency is up nearly 60% year-to-date and is up almost 150% in the last twelve months. Despite regulatory hurdles, crypto exchange shutdowns, and a brutal bear market, Bitcoin has climbed the infamous “Wall of Worry” and is just a few thousand shy of its all-time high of $73,798.

Looking ahead to the second half of 2024, Bitcoin and Bitcoin proxies are expected to benefit from two major bullish catalysts, including:

Bitcoin Halving Drives Record Gains

The Bitcoin “Halfing” event occurs every four years and halves the number of newly “minted” Bitcoins. Bitcoin’s unique monetary policy distinguishes it from central bank-issued currencies and makes it an attractive investment for many people. While central banks have no limit on how much they can inflate their currencies, Bitcoin’s supply is limited. Historical price movements show the benefits of halving. The first three halvings yielded 9,133%, 281% and 562% gains one year later!

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Institutional Adoption Increases with Bitcoin ETFs

A 13F is a disclosure required by the U.S. Securities and Exchange Commission (SEC) that companies with more than $100 million in assets under management must file. This quarter, more than 600 institutions announced positions in spot Bitcoin ETFs, including a who’s who of top firms like JP Morgan (JPM), Wells Fargo (WFC), and Millennium (announced $2 billion positions). .

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3 Crypto-Related Stocks to Buy NowCoinbase (COIN)

Coinbase is the leading crypto exchange in the United States and has a best possible Zacks Rank #1 (Strong Buy).

cash cow

Seth Klarman is a legendary value investor, billionaire, and one of the world’s highest-earning money managers. In an interview last year, Klarman stated that he stayed away from cryptocurrencies but saw value in Coinbase, saying, “Coinbase has $5 billion in cash, less debt than that, and is doing some smart things.” Now this number has exceeded 7 billion. I bring this to your attention because many people who trade a stock like COIN probably don’t realize how fundamentally sound the company is.

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Coinbase Destroys Street Expectations

On May 3, the leading crypto exchange posted EPS of $4.4, beating the Street’s estimate of $1.07. Here is part of the EPS transcript that caught my attention: “1. Our financial performance in the quarter reflects our focused execution on product expansion, ongoing operational performance discipline and strong crypto market conditions. We generated $1.6 billion in total revenue and $1.2 billion in net income*. Adjusted EBITDA was $1.0 billion; That’s more than we produced in all of 2023.” Finally, we continue to increase regulatory clarity for crypto through grassroots advocacy, pushing for legislation, and ongoing efforts to provide clarity through the courts.

The story continues

COIN has exceeded expectations for five consecutive quarters and is not just beating them, it’s crushing them. The average EPS surprise over the last five quarters was 364.63%!

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Robinhood Markets (HOOD)

Zacks Rank #2 (Buy) stock Robinhood (HOOD) is one of the most popular brokerage firms in the United States. Robinhood became the first major broker to “democratize” trading by offering a commission-free investing app. The practice rose to prominence during the meme stock craze spurred by retail investment groups on social media platform Reddit (RDDT) and included meteoric moves in stocks like GameStop (GME).

Bull Catalyst: Crypto

HOOD recently added crypto-enabled trading. Although HOOD is late to the crypto game, the company has the perfect customer base to capitalize on the Bitcoin bull market.

Consistent Positive EPS Surprises

HOOD reported first-quarter earnings that beat Zacks Consensus Estimates by 260%. Positive earnings ratios have become the norm, with an average earnings per share ratio of 230% over the last four quarters!

Net Deposit Record

Net deposits are one of the most important metrics for brokers to track. HOOD net deposits reached a record $11.2 billion in the first quarter; This corresponded to a growth rate of 44% year-on-year and contributed to a growth rate of 30% in the last twelve months. Meanwhile, CEO Vlad Tenev announced on May 14 that Robinhood’s stock trading volume reached $5 billion.

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Robinhood Gold Grows

Robinhood recently announced a new “Gold” credit card. HOOD has already gained 260,000 new subscribers.

MicroStrategy (MSTR)

MicroStrategy has been around for years and is a leading provider of business intelligence software.

Adopting the Bitcoin Standard

Former CEO and billionaire Michael Saylor made a splash on Wall Street when he bought MSTR in the “Bitcoin Standard” a few years ago. Saylor realized that MSTR would be better off with a “Bitcoin sail” rather than sitting in inflationary assets like the US dollar. Essentially, MSTR is a leveraged Bitcoin bet. The results are obvious; in the last five years MicroStrategy has increased by more than 1000%!

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Conversely, a good option for investors who do not want a leveraged bet but want to benefit from Bitcoin’s potential rise is the iShares Bitcoin Trust (IBIT) ETF. IBIT has some of the lowest fees and most liquidity of all Bitcoin ETFs.

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Wells Fargo & Company (WFC): Free Stock Analysis Report

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

GameStop Corp. (GME): Free Stock Analysis Report

MicroStrategy Incorporated (MSTR): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report

iShares Bitcoin Trust (IBIT): ETF Research Reports

Reddit Inc. (RDDT): Free Stock Analysis Report

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