The Top Crypto Stocks to Watch as Bitcoin Closes in on $100k Milestone

The Top Crypto Stocks to Watch as Bitcoin Closes in on $100k Milestone

An explosive rally has set Bitcoin on the cusp of the $100k a coin milestone. Those are sentiments echoed around the quarters in the aftermath of the flagship cryptocurrency powering through the $70,000 a coin mark. Several factors support the prospect of the crypto powering through the monumental mark.

Bitcoin Catalysts

The approval of Bitcoin exchange-traded funds is at the top of the list, and it has been the catalyst behind an influx of institutional investors into the sector. The approval of more than a dozen ETFs has once again strengthened sentiments about crypto investments, which have been rattled by regulatory scrutiny and crackdowns over the years.

Institutional investors play an essential role in the market. The size of their trades often acts as a catalyst in drawing more investors on the fence. That appears to have been the case as Bitcoin has rallied by more than 70% for the year, with more retail traders joining the frenzy.

In addition to improving the regulatory framework with the approval of BTC ETF, action in the cryptocurrency sector is also being influenced by the much-awaited Bitcoin halving event in April. The event that halves the rewards miners get has always been preceded by significant price movements in the market.

Analysts are already predicting that Bitcoin will power to record highs of $115,000 a coin after the halving event. The rally in the flagship cryptocurrency has had a ripple effect, fueling similar rallies in other altcoins. Likewise, stocks with exposure to the cryptocurrency sector have also been in terrific form, rallying as the Bitcoin momentum continues to gather steam.

An influx of new investors into the cryptocurrency sector, with Bitcoin showing signs of powering through the 100k level, is expected to reshape the price dynamics of the entire sector. The influx should result in other cryptocurrencies trading at discounted levels exploding in line with momentum around BTC.

Likewise, companies exposed to cryptocurrencies and blockchain technology are expected to benefit as more people join the crypto frenzy. Similarly, improving monetary policies around the globe are expected to influence the cryptocurrency markets by making it easier and more affordable for people to invest in the sector.

Some of the stocks are worth paying attention to as Bitcoin makes a run for the $100k level include:

MicroStrategy

MicroStrategy is the top cryptocurrency stock for investors who wish to refrain from owning tokens outright. The company has already amassed a Bitcoin stake worth more than $10 billion as it continues to raise money to acquire more Bitcoin and other cryptocurrencies.

The company purchases the coins at depressed valuations and will offload them once their price increases significantly. Consequently, it is one of the companies well-positioned to profit from Bitcoin’s powering through the $100k barrier. The company holds over 190,000 digital tokens, making it the world’s largest Bitcoin owner. Given its significant Bitcoin holding, the company’s stock price often moves in tandem with Bitcoin’s price.

Block

Best known as a technology company that builds ecosystems focused on commerce and financial products, Block also offers significant exposure to blockchain, the building block of cryptocurrencies. The company is already working on a Bitcoin Wallet to take advantage of the crypto frenzy.

Likewise, the company will likely capture a broader segment of customers who have yet to be ready to use third-party services to store their cryptocurrencies. Its established status on Wall Street offers a layer of credibility in the crypto space. It should see it generate significant value as more people look to buy, sell, and stake cryptocurrencies.

Block holds about 8,038 Bitcoin coins, valued at over $500 million. The company generates significant profit from its crypto operations, which it shares with shareholders.

Riot Platforms

Riot Platforms is arguably one of the best stocks for gaining exposure to the cryptocurrency sector. The company offers co-location services for institutional-scale Bitcoin mining companies and other critical infrastructure.

With Bitcoin trading at all-time highs, the Riot platform is one of the stocks poised to explode after rallying by about 20% over the past six months. The company remains supported by solid fundamentals and aggressive expansion in the burgeoning sector. As of the end of last year, the company had cash and equivalents amounting to $908 million with zero debt and financial flexibility, which affirms its stability in the sector.

Coinbase Global

It does not get any better than Coinbase, the world’s biggest cryptocurrency exchange. The company supports the buying, selling, and staking of cryptocurrencies, an edge that has allowed it to generate significant revenues on fees.

Likewise, the company generates significant returns in fees in periods of increased cryptocurrency trading activities. In the most recent quarter, its revenue was up by 58% to $953 million, helped by Bitcoin price rallying above the $40,000 a coin level. Trading revenue in the exchange was up by 79% in the quarter.

Coinbase stock has rallied by more than 300% over the past 12 months, keeping up with the momentum in the cryptocurrency sector. It should continue edging higher in line with the sector’s bullish momentum.

Bitfarms

While a penny stock in the burgeoning sector, Bitfarms is worth paying attention to, given its financial stability. The company has carved a niche as a mining company with operations in Canada, the US, Paraguay, and Argentina. Likewise, it owns and operates server farms that validate transactions on the Bitcoin Blockchain.

Trading at just $2 a share, Bitfarms has the potential to explode as Bitcoin makes a run for the monumental $100,000 a coin level. With a liquidity buffer of $118 million as of the end of last year and having completed a $375 million market equity offering, it remains in a solid financial position to pursue expansion plans and bolster its mining operations.

With a hash rate capacity of 6.5EH, the company is on course to increase it to 21EH   in the first half of the year, which should allow it to generate stellar revenue and cash flow.

Marathon Digital

Marathon Digital is a cryptocurrency play for investors who want exposure to the crypto mining business. The stock has rallied by over 200% over the past 12 months and is poised to edge even higher, given the strong momentum in the sector.

The company stands out for increasing its harsh rate by over 250% last year, which led to a 229% increase in revenue of $387.5 million. Likewise, given its holdings, Marathon Digital is well-positioned to benefit from higher Bitcoin prices. With the company planning to increase its hash rate capacity to 50EH/s over the next two years, it should be able to double its revenues.

MercadoLibre

Growing cryptocurrency popularity in Latin America has fueled booming business for MercadoLibre, an online commerce platform operator. The company has gained exposure in the sector by offering a way for buyers and sellers to handle and exchange various cryptocurrencies.

By offering a digital wallet for traders to buy and sell a range of cryptocurrencies, the company continues to generate fees. Consequently, as more people use digital currencies amid the boom, the company should be able to create more crypto-linked revenues.

CleanSpark

CleanSpark is not your typical Bitcoin mining company but has embraced an innovative approach towards sustainability, making it stand out in the sector. Likewise, the company has more than doubled its Bitcoin mining production capacity and is positioned to profit as prices continue to surge. With the purchase of 160,000 new Bitcoin mining equipment from Bitmain, the company is ramping up its mining operations as it looks to profit from the rising prices. Its financial performance has also been outstanding, with revenues increasing by 165.5% to $73.8 million. In addition, the stock has rallied by more than 400%, aligning with the crypto space’s momentum.

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