Looking For The Top Cryptocurrency Stocks To Watch Now? 3 To Consider
It has been an invigorating week for cryptocurrency stocks, to say the least. After bitcoin started the year off with a massive rally, crypto investors flocked to the top cryptocurrency stocks to watch now. However, it seems that digital currency is still a hot commodity as it soared past the $38,000 mark. Admittedly, this does line up with the recent Georgia runoff elections in the U.S. To elaborate, the democratic party essentially won control of the Senate. With this victory, Biden’s administration has more say in future stimulus package deployments. At face value, you may think this is great. But, the U.S. government will likely have to incur more debt to foot the bill. Should this occur, the dollar could decline in value. The next best thing in this situation would be commodities like gold, or in the current case, bitcoin.
Crypto enthusiasts have likened the digital currency to gold. For one thing, both are limited in supply. There is a limit of just under 21 million bitcoins being created. Therefore, it would be understandable that investors would flock to cryptocurrency in these times to mitigate their losses. However, banking in on bitcoin may not be every investor’s preferred strategy. Considering the highly volatile state of the digital currency, more conservative investors would opt for cryptocurrency stocks instead. This includes companies who focus on mining bitcoins like Riot (RIOT Stock Report) or Bit Digital (BTBT Stock Report). Alternatively, companies like NVIDIA (NVDA Stock Report) who make mining hardware are also amongst the top picks.
Considering how hot the industry is now, it can be hard to pinpoint the best cryptocurrency stocks to watch. Well if you’re looking to invest in the sector regardless, here is a list of crypto companies making moves in the stock market today.
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Top Cryptocurrency Stocks To Watch In January
- CleanSpark Incorporated (CLSK Stock Report)
- MicroStrategy Incorporated (MSTR Stock Report)
- Canaan Incorporated (CAN Stock Report)
Top Cryptocurrency Stocks To Buy [Or Avoid] Now #1: CleanSpark Incorporated
First up, we have CleanSpark (NASDAQ: CLSK). It is a Utah-based solar energy software and services company. The company offers software and intelligent controls for microgrid and distributed energy resource management systems. Also, it has been in the cryptocurrency business since it acquired bitcoin miner ATL Data Center earlier last month. Notably, CLSK stock shot up by over 27% throughout yesterday’s trading session. The stock is up another 10% as of 9:46 a.m. ET. This could be bitcoin tailwinds working in tandem with the company’s latest mining update.
On January 5, CleanSpark reported stellar figures from its bitcoin mining operations. The company reported revenues of over $870,000 since it began mining. CEO Zach Bradford said, “We believe in taking a big-picture approach in how we view Bitcoin values with a focus on profitability. Conservatively, based on our all-in costs including energy, rent, personnel, and overhead the Company can realize a profit whenever Bitcoin values are above $6,000 per coin. We anticipate that as we scale up our deployment of energy assets and software, we can decrease our total cost per coin to even lower levels. As prices fluctuate, the Company’s focus is on the variables within our control; such as expanding the fleet of miners, and maximizing the renewable energy usage.” With tailwinds from the renewable and cryptocurrency industries fueling CLSK stock, I can see why investors are this excited.
In its fiscal year 2020 report posted last month, the company also reported solid numbers. CleanSpark saw annual revenue rise by 122% year-over-year. Impressively, this is the third consecutive year in which its revenues more than doubled. It seems to me that CleanSpark is firing on all cylinders. Given all of this, will you be adding CLSK stock to your January watchlist?
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Top Cryptocurrency Stocks To Buy [Or Avoid] Now #2: MicroStrategy Incorporated
Another top cryptocurrency stock to watch now is MicroStrategy (NASDAQ: MSTR). MicroStrategy primarily focuses on providing business intelligence, mobile software, and cloud-based services. To point out, the company has been using bitcoin as its main funds’ reserve asset since August 2020. In fact, MicroStrategy reported that it held 70,470 bitcoins on December 21. Since then, MSTR stock has jumped by over 50%.
In the press release, MicroStrategy mentioned that the purchase price of its current bitcoin collection was approximately $1.125 billion. This was at an average cost of $15,964 per bitcoin. In hindsight, MicroStrategy’s game plan seems to have paid off quite handsomely with average gains of about $22,000 a bitcoin. CFO Phong Le said, “The Company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash. We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company.” The real question here is, can these numbers hold up in the long run? Your guess is as good as mine.
In its recent quarter fiscal posted in October, the company reported total revenue of $127.41 million for the quarter. CEO Michael Saylor said, “MicroStrategy delivered one of its stronger quarters in years, with meaningful growth in both product licenses and deferred subscription services revenues and a significant improvement in non-GAAP operating margin. We believe our performance demonstrates growing customer demand for scalable, flexible enterprise-grade solutions that enable better business performance through data-driven decisions.” In theory, the company is in a great position to leverage tailwinds in both the software and cryptocurrency sectors. Could this mean big gains for MSTR stock? You tell me.
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Top Cryptocurrency Stocks To Buy [Or Avoid] Now #3: Canaan Incorporated
Last but not least, we have bitcoin mining hardware company Canaan (NASDAQ: CAN). In brief, the China-based computer hardware company specializes in blockchain servers and application-specific integrated circuits solutions. Considering how vital it is for bitcoin miners, I’m not surprised to see CAN stock soaring over 60% in the past month. The stock is up another 9% as of 9:50 a.m. ET. Understandably, crypto investors have this company on their radars.
In its third-quarter fiscal, Canaan saw total revenue of $163.04 million. It ended the quarter with $177.36 million in cash on hand. CEO Nangeng Zhang said, “During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost. In addition, we have also accelerated the monetization of our AI business through our partnerships with a number of companies in various industries, such as online education and smart city solutions.” Paired with the current state of the cryptocurrency sector, Canaan seems to have big plans moving forward.
On Monday, Canaan launched a new piece of cryptocurrency mining hardware. In summary, the novel machine self-regulates its temperature through liquid immersion. Crucially, this could translate into a considerable reduction in expenses and energy consumption for bitcoin miners. For investors, this could mean big gains for the company as it provides a solution to overheating GPUs which miners struggle with. Evidently, Canaan is not resting on its laurels even amidst these exciting times. With all this in mind, will CAN stock continue to flourish this year? I’ll let you decide.
