3 Cryptocurrency Stocks Set for Big Gain

Investors should know that interest rates influence financial markets and asset classes, especially those with different risk levels. When the Federal Reserve cuts interest rates, like it recently did, many see this as a positive sign for stocks. However, there are greater opportunities in what are considered ‘riskier’ assets, particularly cryptocurrencies like Bitcoin BTC/USD.

With declining yields in stocks and bonds, investors often turn to Bitcoin as a hedge against inflation. Instead of directly buying Bitcoin, they might consider investing in Bitcoin-related stocks.

Key stocks include Coinbase Global Inc. COIN, a major exchange for Bitcoin trading, and MicroStrategy Inc. MSTR, known for holding significant Bitcoin. Another option is CleanSpark Inc. CLSK, a smaller but growing player in Bitcoin mining.

Coinbase Stock Has Great Potential

Despite the bullish trend in the broader market, Coinbase’s stock is currently only 67% of its 52-week high, suggesting significant upside potential. Analysts at JMP Securities recently reaffirmed their “Market Outperform” rating and a price target of $320 for Coinbase, predicting a 62.6% increase from its current price.

Institutional investor Renaissance Technologies increased their Coinbase holdings by nearly 186% last quarter, totaling around $236.3 million.

MicroStrategy Attracts New Investors

MicroStrategy holds approximately 226,500 Bitcoins, valued at around $36,821 each. As Bitcoin approaches new highs, interest in MicroStrategy’s stock is rising, reflected in a surge in trading volume to nearly double the average.

Analysts from Sanford C. Bernstein have maintained an “Outperform” rating and set a price target of $290 for MicroStrategy, indicating a potential 41.5% upside.

Currently, MicroStrategy’s stock trades at a price-to-book (P/B) ratio of 16.0, significantly higher than the computer sector average of 7.3, showing investor confidence in future growth due to Bitcoin’s potential.

CleanSpark’s Bitcoin Holdings May Boost Value

CleanSpark, valued at $2.5 billion, could see increased stock value with a rise in Bitcoin prices. The company owns about $413 million worth of Bitcoin and mined 1,583 coins last quarter.

With analysts at Cantor Fitzgerald reiterating their “Overweight” rating and a target price of $23 per share, CleanSpark could rally by 113%, since it is currently only at 41% of its 52-week high.

The article “Top 3 Cryptocurrency Stocks Poised for Major Gains” first appeared on MarketBeat.