3 Crypto Stocks to Buy Before Bitcoin Hits $100,000
Last month Standard Chartered released a report which Bitcoin (BTC-USD) may reach $100,000 by the end of 2024. The goal seems steep, but cryptocurrencies have a history of skyrocketing in an instant.
Standard Chartered cites stress in the traditional banking system as one of the catalysts for a Bitcoin rally. I believe that a dovish attitude from the Federal Reserve in the second half of 2023 will also contribute to the recovery.
In addition, the halving of Bitcoin is due in 2024. Based on previous cases, the halving event is followed by a rally for Bitcoin and other cryptocurrencies. With these upsides, it’s a good time to stock up on quality crypto projects.
Furthermore, investment can also be considered in some of the best crypto stocks for a Bitcoin rally. If Bitcoin touches $100,000, the crypto stocks to buy could deliver multibagger returns.
Let’s discuss the reasons to be bullish on these crypto stocks.
Coinbase (COIN)
Source: Sergei Elagin / Shutterstock.com
As the second largest crypto exchange in the world, Coin base (NASDAQ:COIN) is among the best crypto stocks to buy.
On the day of Q1 2023 results, COIN stock rose 18%. This was based on an income and earnings layer. With Bitcoin likely to trend higher, I believe COIN will remain in an uptrend.
It’s worth noting that the rally in Bitcoin and the broader crypto space is translating into higher trading and speculative activity. The recovery in revenues together with margin improvement is on the cards in the coming quarters.
Coinbase is too expand its addressable market potential. In Q1, the company made inroads into Canada, Brazil and Singapore. With plans to expand into more markets, accelerating revenue growth is likely to make sense.
The company’s subscription and service revenues have also continued to rise. For Q1, revenue was $361.7 million, which was up over 100% year over year. With a strong retail and institutional customer base, the outlook is positive for COIN stock.
Riot Platforms (RIOT)
Source: Shutterstock
Riot Platforms (NASDAQ:RIOT) has skyrocketed by 242% year to date in 2023. During this period, Bitcoin has increased by over 70%. The big rally is an indicator of the upside potential if Bitcoin touches $100,000.
As an overview, Riot Platforms is a Bitcoin miner. There are two reasons to like Riot over its peers. First, the company has a solid balance sheet with zero debt and $230 million in cash and equivalents.
Furthermore, Riot is a reasonable miner. Last year, the company reported a gross margin of 60.3%. With Bitcoin trending higher, I expect healthy EBITDA margin expansion and cash flow upside for the company.
It is also worth noting that Riot has continuously increased its mining capacity. As of April, the company reported a capacity of 10.6EH/s. Riot expects to increase capacity to 12.5EH/si by the second half of 2023. Considering balance sheet health, I expect the capacity increase to continue. Therefore, there is visibility for robust income growth in 2023 and beyond.
Block (SQ)
Source: IgorGolovniov / Shutterstock.com
Block (SNEEZE:SQ) share has been in a sustained downward trend. However, it remains on my list of best crypto stocks for a Bitcoin rally.
It was back in December 2021 that Square was rebranded as Block. The idea was to emphasize the company’s focus on blockchain technology. The bear market of cryptocurrencies has influenced the development. But as crypto winter ends, there are reasons to be bullish.
It is worth noting that the company’s Cash App is used to buy and sell Bitcoin. In addition, it was reported in 2021 that the company is building a decentralized finance business using Bitcoin. Last year it was reported that Jack Dorsey built Web5 based on Bitcoin.
My point is that there is a development in the background. Block has good financial flexibility to invest in blockchain technology. With a big correction in SQ stock, it seems like a good time to accumulate.
At the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
