4 Crypto Stocks to Buy Now at a Deep Discount

  • Each of these four cryptographic stocks to buy offers a unique way to indirectly invest in the sale of crpyto.
  • Coinbase (CURRENCY): Growth of institutional and retail customers and more listed assets and abundant cash for organic and acquisition-driven growth.
  • Riot Blockchain (REASONS): With additional mining capacity, revenues and EBITDA are likely to increase, along with a strong balance sheet with growing cash and digital assets.
  • Cabin 8 Mining (CABANA): Other Bitcoin (BTC-USD) mining with visibility for revenue growth and underestimated EBITDA taking into account growth prospects and digital assets on the balance sheet.
  • Block (SQ): The Cash app remains the game changer with sustained growth in Bitcoin transactions through the app.

There has been a global sell-off in the risk asset class market. Within the umbrella of risky assets, cryptocurrencies undoubtedly have the highest volatility. It’s no surprise that cryptocurrencies and cryptocurrencies have plummeted in the recent past.

I think the tightening of global liquidity is the biggest fear for asset markets. The recent rise in interest rates could be just the beginning of the tightening cycle as the central bank focuses on curbing inflation.

Although there are headwinds in the medium term, I remain optimistic about the long-term outlook for cryptocurrencies. The United States has already indicated that it expects responsible innovation from the cryptographic world. A ban seems unlikely.

Once the winds against inflation and the potential recession are overcome, the asset class is likely to recover. In addition to direct exposure to cryptocurrencies, investors can look at deeply oversold cryptocurrencies.

This column discusses four cryptographic actions that may have a significant rebound once sentiment has risen. Bitcoin (BTC-USD).

CURRENCY Coinbase $ 77.62
REASONS Riot Blockchain $ 7.71
CABANA Cabin 8 Mining $ 2.88
SQ Block $ 85.97

Coinbase (COIN)

Source: 24K-Production / Shutterstock.com

Coinbase (NASDAQ:CURRENCY) shares have fallen 79% in the last six months. With Bitcoin struggling, it’s no surprise that stocks have a downward trend. Hardening liquidity would also involve relatively less speculative activity. This will affect Coinbase trading volumes.

However, I believe that the gradual accumulation can be considered equal to or below the $ 100 level. COIN shares seem oversold, and even with the slightest change in market sentiment, there may be a sharp rebound.

On the plus side, Coinbase reported 50% growth in institutional investments in the platform year-on-year. With a wider adoption of crypto, the company can benefit. In addition, Coinbase has steadily increased the number of assets for trading and custody. When market sentiment becomes bullish, this should translate into higher trading revenue.

By 2021, Coinbase also generated $ 500 million in subscription and service revenue. Revenues in this segment will continue to increase with products such as staking, earn and custody. Coinbase also has a solid cash and cash equivalents balance of $ 7.1 billion as of December 2021. This places the company on aggressive, growth-driven organic growth.

Riot Blockchain (RIOT)

Macro view of a miner working for the bitcoin mining pool.  Devices and technology for mining cryptocurrencies.  Mining cryptocurrency concept.  stock MARA.  Cryptographic mining.

Source: Yev_1234 / Shutterstock

Among the Bitcoin miners, Riot Blockchain (NASDAQ:REASONS) is among the major cryptographic actions to consider. Shares have fallen nearly 81% in the past six months. The catalyst for the correction was the dilution of equity and a sharp decline in the price of Bitcoin.

However, the company continues to add mining capacity and is positioned for robust growth in the next 12 to 18 months. By April 2022, Riot reported mining 508 Bitcoin. At a year-on-year rate, the number of Bitcoin extracted increased by 150%.

It should be noted that the company had a hash rate capacity of 4.7 EH / s (exahash per second). Riot expects to increase capacity to 12.8 EH / s by January 2023. This would account for almost three times the capacity of current levels. Therefore, the company is positioned to extract 1,500 Bitcoin per month by 2023. This is likely to translate into healthy revenue growth and EBITDA (earnings before interest, taxes, depreciation and amortization).

In December 2021, Riot reported a net cash position of $ 312.3 million. This provides ample financial flexibility for future expansion. In addition, as digital assets increase, RIOT shares will position themselves for a higher trend once there is a renewed rebound for Bitcoin.

Overall, RIOT shares are attractive below $ 10 levels. I wouldn’t be surprised if the stock doubles in the next 12 months.

Hut 8 Mining (HUT)

Cryptographic mining machines

Another Bitcoin mining company that looks attractive after a deep correction is Cabin 8 Mining (NASDAQ:CABANA). The penny stock can quickly double once Bitcoin trends go up.

By April 2022, Hut 8 was extracting 309 Bitcoin with an installed capacity of 2.58 EH / s. In addition, the company had total Bitcoin reserves of 6,769 as of April 2022.

Hut 8 also expects to increase mining capacity to 3.55 EH / s in the middle of the second quarter of 2022. Therefore, there is a clear growth visibility for the coming quarters.

It is worth noting that in December 2021, the company reported $ 464 million in cash and digital assets. The company has a current market capitalization of $ 484 million. This is a clear indication of underestimation.

Of course, Bitcoin trades significantly below all-time highs. However, previous concentrations have shown that the rebound can be strong. It makes sense to wait patiently for the next stage of rise with cheap cryptographic actions like HUT actions, among others.

If Bitcoin returns to $ 70,000 levels in the next 12 to 24 months, HUT shares are positioned for multiple returns.

Block (SQ)

Square, Inc.  rename Block (SQ).  Smartphone with Square logo on the screen in hand on the background of the Block logo.

Source: Sergei Elagin / Shutterstock.com

When broader sentiments become bearish, markets tend to overreact. In general, growth stocks are prone to selling pressure. Block (NYSE:SQ) The shares are oversold. It is worth considering stocks below $ 100 levels.

For the first quarter of 2022, Block reported a gross profit of $ 1.29 billion. At a year-on-year rate, profits rose 34% and the Cash app remains the main driver of growth.

As for the specific developments of cryptocurrency, more than 10 million customers of the Cash application bought Bitcoin. Recently, Block also announced the possibility of sending and receiving Bitcoin through the Lightning Network. Overall, Block reported revenue of $ 1.7 billion for the first quarter of 2022.

Earlier this year, Block founder and CEO also indicated that the company is building an open Bitcoin mining system. The idea is to make Bitcoin mining more efficient and distributed. With ample financial flexibility, Block is positioned to invest in blockchain technology.

Nor will it surprise me if the company introduces cryptocurrency trading through the Cash app in the future. Overall, Block looks attractive as a financial technology company that also has exposure and investments in the cryptographic space.

At the time of publication, Faisal Humayun did not hold (either directly or indirectly) any position in the titles mentioned in this article. The views expressed in this article are those of the writer, subject to the InvestorPlace.com publication guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, capital research and financial modeling. Faisal has written more than 1,500 specific articles on actions focused on the technology, energy, and commodities sectors.

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