With cryptocurrencies breaking record highs last week, March is proving to be one of the best months to buy crypto stocks, according to analysts. Bitcoin (BTC-USD), the most widely traded cryptocurrency, hit a fresh 52-week high on March 9, primarily driven by the Bitcoin halving event speculated to occur in mid-April 2024.
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Bitcoin halving essentially halves the reward that Bitcoin miners receive. This event occurs approximately every four years after miners add 210,000 blocks to the blockchain. This procedure controls the rate at which Bitcoin is introduced and protects against inflation. The Bitcoin halving event is expected to impact Bitcoin’s market value, miners’ operating profitability, and in general, the entire global crypto ecosystem.
Well, before the event occurs, let us look at 5 Best Crypto Stocks that analysts on TipRanks are recommending based on their expertise. Crypto stocks include companies that mine cryptocurrencies, operate crypto exchanges, manufacture equipment used for crypto mining, or invest in cryptocurrencies.
#1 Riot Platforms Inc. (NASDAQ:RIOT)
Riot Platforms operates on multiple facets of the crypto space. Its operations span Bitcoin self-mining, hosting data centers for miners, as well as manufacturing electrical components and immersion cooling tech equipment for mining. Riot Platforms claims to be one of the lowest-cost Bitcoin miners in the industry and boasts its Rockdale Facility as one of the largest single Bitcoin mining facilities in North America based on developed capacity.
In Fiscal 2023, Riot’s Bitcoin production jumped 19% year-over-year while achieving a record hashrate capacity of 12.4 exahash per second (EH/s), up 28% from the end of 2022. By the end of Fiscal 2024, Riot aims to reach roughly 28 EH/s of total hash rate capacity. Further, in January and February 2024, Riot produced 520 and 418 bitcoins, respectively, and held 8,067 Bitcoin as of February 29, 2024.
With eight unanimous Buys, RIOT stock commands a Strong Buy consensus rating on TipRanks. The average Riot Platforms Inc. share price forecast of $20.25 implies nearly 64% upside potential from current levels. RIOT shares have gained 97.6% in the past year.
#2 CleanSpark, Inc. (NASDAQ:CLSK)
CleanSpark is a responsible Bitcoin mining company that uses a sustainable energy mix, including nuclear, hydroelectric, solar, and wind, to power its mining operations. The company owns and operates data centers that run on low-carbon power. CleanSpark has multiple mining facilities in Georgia, New York, and Mississippi.
In February, CleanSpark’s hashrate grew by a massive 60% in just a month to cross 16 EH/s. Also, its Bitcoin production increased 12% to 648 BTC, while its treasury (Bitcoin holdings) as of February 29, 2024, climbed to 4,218 BTC. Notably, CleanSpark is on track to achieve a hashrate of 20 EH/s in the first half of Fiscal 2024.
On TipRanks, CLSK stock has a Strong Buy consensus rating based on four unanimous Buys. CLSK stock has exploded 787.7% in the past year. Consequently, the average CleanSpark Inc. share price target of $15.80 implies 21.9% downside potential from current levels.
#3 Iris Energy Limited (NASDAQ:IREN)
Iris Energy is an Australia-based Bitcoin mining company, which is also venturing into the burgeoning artificial intelligence (AI) space. Iris Energy, which recently rebranded to IREN, owns and operates next-generation data centers powered by 100% renewable energy with a focus on areas with low-cost and abundant renewable energy sources.
That’s not all, IREN signed a cloud service agreement with AI startup Poolside AI on February 9, 2024. IREN will allow Poolside to leverage 248 of its Nvidia (NASDAQ:NVDA) H100 GPUs to train its generative AI models.
Importantly, in February, IREN mined 310 bitcoin and achieved a hashrate of 7 EH/s. By the end of 2024, IREN aims to expand its hashrate to 20 EH/s. IREN also purchased an additional 568 of Nvidia’s H100 GPUs in February.
With six unanimous Buy ratings on TipRanks, IREN has a Strong Buy consensus rating. The average IREN share price target of $10.92 implies 104.1% upside potential from current levels. IREN stock has zoomed over 102% in the past year.
#4 Bitfarms Ltd (NASDAQ:BITF)
Canada-based Bitfarms Ltd. is a vertically integrated Bitcoin mining company operating 11 farms across Canada, the U.S., Argentina, and Paraguay. Bitfarms operates Bitcoin blockchain computing centers with in-house management, on-site repair, and maintenance, while running on low-cost energy with long-term contracts. Nine of Bitfarms’ farms are powered by hydro-electricity.
For the three months ended December 31, 2023, Bitfarms’ hashrate rose by 7% year-over-year to 6.5 EH/s. By the end of 2024, Bitfarms targets a hashrate of 21 EH/s, driven by new farm development in Paraguay and transformational fleet upgrade.
In January and February 2024, Bitfarms produced 357 and 300 BTC, respectively, with a hashrate of 6.5 EH/s. As of February 29, 2024, Bitfarms held 804 BTC in treasury.
On TipRanks, BITF has a Strong Buy consensus rating, backed by four unanimous Buys. The average Bitfarms Ltd share price forecast of $3.81 implies 42.7% upside potential from current levels. Interestingly, BITF stock has exploded 225.6% in the past year.
#5 Cipher Mining (NASDAQ:CIFR)
Cipher Mining is an industrial-scale Bitcoin mining company that aims to expand and strengthen the Bitcoin network’s critical infrastructure in the U.S. Cipher owns and operates four data centers across the U.S.
In February 2024, Cipher mined 334 BTC, with a month-end hashrate of 7.4 EH/s. Cipher is on track to exceed a hash rate of 9.3 EH/s by the end of Q3 FY24. As of February end, Cipher held 1,433 BTC in its treasury. Notably, by the end of Fiscal 2025, Cipher targets a hashrate of 25 EH/s.
With four unanimous Buy ratings, CIFR commands a Strong Buy consensus rating on TipRanks. The average Cipher Mining share price forecast of $5.88 implies 67.5% upside potential from current levels. In the past year, CIFR stock has gained nearly 93%.
Key Takeaways
The cryptocurrency industry took the world by storm in 2018. After facing company-specific events and macro challenges in 2022, Bitcoin and other cryptocurrencies witnessed a massive decline in their prices. Even so, analysts project better days ahead for some crypto players. The above five companies have the best upside potential based on the consensus price targets of Wall Street analysts. Investors can consider the addition of these crypto stocks to their portfolios to gain exposure to the fast-evolving crypto world. However, investors must consider the high risks associated with crypto markets before making any investment decision.
