Crypto: 7 Stocks Riding the Crypto Craze Right Now
The big rally in Bitcoin (CCC:BTC-USD) has taken the crypto euphoria to the next level. The crypto rally does not cease to amaze. As a matter of fact, Bitcoin’s market capitalization is now bigger than that of JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Bank of America (NYSE:BAC) combined.
Of course, it’s not all about the bull market in the crypto space. There is a strong case for wide adoption of cryptocurrencies and blockchain technology. Recently, Tesla (NASDAQ:TSLA) was in the news for buying $1.5 billion worth of Bitcoin. The company also plans to start accepting Bitcoin as a payment method in the future.
Further, it’s expected that the global blockchain market will grow from $3 billion in fiscal year 2020 to $39.7 billion by FY2025. A study shows that 69% “of banks are experimenting with blockchain technology to make their services more secure, seamless and transparent.” This presents a big opportunity for companies in the field of blockchain technology.
A direct way of exposure to crypto is Bitcoin or other cryptocurrencies. However, several listed companies have interest in the crypto and blockchain domain. Stocks of these companies could be attractive investment options.
Let’s talk about seven stocks riding the crypto craze:
- Riot Blockchain (NASDAQ:RIOT)
- Square (NYSE:SQ)
- HIVE Blockchain Technologies (OTCMKTS:HVBTF)
- Overstock.com (NASDAQ:OSTK)
- Facebook (NASDAQ:FB)
- Xunlei Limited (NASDAQ:XNET)
- Future FinTech Group (NASDAQ:FTFT)
Stocks Riding the Crypto Craze: Riot Blockchain (RIOT)
With Bitcoin surging recently, Riot Blockchain stock has also skyrocketed. In the last six months, RIOT stock has delivered returns of more than 1,700%. Some correction from current levels is likely. However, the stock is worth keeping on your investment radar considering the expansion plans for the current year.
As an overview, Riot Blockchain is a cryptocurrency mining company. Riot utilizes miners to generate Bitcoin from the blockchain. For the first nine months of 2020, the company produced 730 newly minted Bitcoins.
An important point to note is that Riot expects to have 22,640 miners deployed by June 2021. A majority of these miners will be the latest generation S19 Pro miners. Therefore, as these deployments are undertaken in the next few months, the amount of newly minted Bitcoins will increase. It’s not surprising that the stock is surging along with rising Bitcoin price.
As of September 2020, Riot reported $30.1 million in cash and equivalents. Further, the company had $9 million in cryptocurrencies. With $24.4 million in remaining capital expansion, the company is fully financed for the growth in miners through June 2021.
Overall, RIOT stock is an interesting name to consider in the crypto space. This is especially true if the momentum remains bullish for Bitcoin, which is very likely.
SQ stock, which has moved higher by 76% in…