Prediction: These Could Be the Best-Performing Crypto Stocks Through 2030

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Prediction: These Could Be the Best-Performing Crypto Stocks Through 2030
Leo Sun, The Motley Fool
Sun, March 3, 2024 at 4:45 PM GMT+6:30·4 min read
In this article:
The crypto market was chilled by high interest rates in 2022 and 2023, but it's been warming up again this year. Bitcoin's (CRYPTO: BTC) price has soared nearly 50% year to date as U.S. regulators approved the first spot price exchange-traded funds (ETFs) and investors looked toward the upcoming halving, which will slow Bitcoin's supply growth this year. Ethereum's (CRYPTO: ETH) price has risen more than 40% on hopes that regulators will also approve its spot price ETFs as the Ethereum network undergoes another update.

That recovery has driven many investors back toward crypto-related stocks like Coinbase Global (NASDAQ: COIN), Marathon Digital (NASDAQ: MARA), and MicroStrategy (NASDAQ: MSTR). All three stocks represent simple ways to profit from the expansion of the crypto market, and they could rally much higher by the end of the decade.

An illustration of physical Bitcoin tokens on a shiny circuit board.
Image source: Getty Images.
1. Coinbase Global
Coinbase is one of the world's largest cryptocurrency exchanges. In 2023, it generated 34% of its trading volume from Bitcoin, 20% from Ethereum, 11% from the Tether (CRYPTO: USDT) stablecoin, and the rest from other types of crypto assets. That diversification makes it a great way to profit from the long-term expansion of the crypto market.

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Coinbase suffered a major slowdown during the past two years as rising interest rates drove investors away from cryptocurrencies and other speculative investments. But looking ahead, the soaring prices of Bitcoin and Ethereum during the past few months will likely bring back more retail investors and light a blazing fire under its business again.

From 2023 to 2026, analysts expect Coinbase's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to both grow at a compound annual growth rate (CAGR) of 9%. Based on those estimates, Coinbase's stock looks reasonably valued at 26 times this year's adjusted EBITDA.

Yet those forecasts seem too conservative if you believe Bitcoin, Ethereum, and other top cryptocurrencies will soar to new heights. If that best-case scenario plays out, Coinbase could easily beat those estimates and outperform the market through 2030.

2. Marathon Digital
Marathon is the world's largest pure-play Bitcoin miner. It minted a record 12,852 bitcoins in 2023, representing a 210% increase from 2022, while its energized hash rate (which gauges its total mining power) rose 253%. It periodically sells its mined Bitcoin to raise more cash, but it still ended the year with 15,126 bitcoins (worth $947 million as of this writing) and $357 million in cash and cash equivalents on its balance sheet.

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Marathon could consolidate the Bitcoin mining market in the near future. During the past year, it already opened two new plants, launched a mining joint venture in Abu Dhabi, and agreed to buy several other mining sites. Therefore, I wouldn't be too surprised if it tries to buy its closest competitor Riot Platforms (NASDAQ: RIOT).

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Should You Buy Bitcoin While It's Close to Hitting an All-Time High of $69,000?
Dominic Basulto, The Motley Fool
Sun, March 3, 2024 at 6:15 PM GMT+6:30·5 min read
Right now, Bitcoin (CRYPTO: BTC) looks unstoppable. It's up about 20% during the past week, and nearly 50% for the year. At a price of about $62,000, Bitcoin is remarkably close to hitting its all-time high of $69,000.

So is now the time to go all in on Bitcoin, as much of Wall Street seems to be doing right now? Or are there better buys out there right now? Let's take a closer look.

The case for buying Bitcoin
Bitcoin's remarkable run this year seems to be driven primarily by one key catalyst: the introduction of new spot Bitcoin exchange-traded funds (ETFs) in January. These have been extraordinarily successful by just about any metric that you want to use. The net inflows into the most popular spot Bitcoin ETFs have been truly astounding.

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For example, take the new iShares Bitcoin Trust (NASDAQ: IBIT) from BlackRock. In just over one month, the fund has gone from holding zero Bitcoin to holding 100,000 coins. Investor inflows are coming in at $500 million per day. The iShares Bitcoin Trust ETF now has almost $7 billion in assets under management, and the new inflows show no signs of stopping.

And it's not just the BlackRock Bitcoin ETF. There are two other spot Bitcoin ETFs with more than $1 billion in assets under management. Given all of this buying momentum, Bitcoin still looks like a screaming buy. If net ETF inflows begin to fall off, then that might be a warning signal that the Bitcoin rally is starting to lose momentum. But that doesn't seem to be the case right now. In fact, if anything, institutions appear to be ramping up their allocations to Bitcoin.

Gold Bitcoin with background of trading chart data.
Image source: Getty Images.
Moreover, there's the upcoming Bitcoin halving in April to consider. These halving events, in which the rate of new Bitcoin production is cut by one-half, occur only once every four years and are highly anticipated by the crypto market. Historically, they have been catalysts for tremendous Bitcoin rallies.

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In fact, in three previous Bitcoin halving cycles (2012, 2016, and 2020), the price of Bitcoin has soared to a new all-time high. Given that the halving is less than two months away, and we're already close to the $69,000 price level, it almost seems like a foregone conclusion that Bitcoin is going to hit a new all-time high sometime before the start of summer.

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Motley Fool
Prediction: These Could Be the Best-Performing Crypto Stocks Through 2030
Leo Sun, The Motley Fool
March 3, 2024 at 6:15 PM·4 min read
In this article:
The crypto market was chilled by high interest rates in 2022 and 2023, but it's been warming up again this year. Bitcoin's (CRYPTO: BTC) price has soared nearly 50% year to date as U.S. regulators approved the first spot price exchange-traded funds (ETFs) and investors looked toward the upcoming halving, which will slow Bitcoin's supply growth this year. Ethereum's (CRYPTO: ETH) price has risen more than 40% on hopes that regulators will also approve its spot price ETFs as the Ethereum network undergoes another update.

That recovery has driven many investors back toward crypto-related stocks like Coinbase Global (NASDAQ: COIN), Marathon Digital (NASDAQ: MARA), and MicroStrategy (NASDAQ: MSTR). All three stocks represent simple ways to profit from the expansion of the crypto market, and they could rally much higher by the end of the decade.

An illustration of physical Bitcoin tokens on a shiny circuit board.
Image source: Getty Images.
1. Coinbase Global
Coinbase is one of the world's largest cryptocurrency exchanges. In 2023, it generated 34% of its trading volume from Bitcoin, 20% from Ethereum, 11% from the Tether (CRYPTO: USDT) stablecoin, and the rest from other types of crypto assets. That diversification makes it a great way to profit from the long-term expansion of the crypto market.

ADVERTISEMENT
Advertisement
Coinbase suffered a major slowdown during the past two years as rising interest rates drove investors away from cryptocurrencies and other speculative investments. But looking ahead, the soaring prices of Bitcoin and Ethereum during the past few months will likely bring back more retail investors and light a blazing fire under its business again.

From 2023 to 2026, analysts expect Coinbase's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to both grow at a compound annual growth rate (CAGR) of 9%. Based on those estimates, Coinbase's stock looks reasonably valued at 26 times this year's adjusted EBITDA.

Yet those forecasts seem too conservative if you believe Bitcoin, Ethereum, and other top cryptocurrencies will soar to new heights. If that best-case scenario plays out, Coinbase could easily beat those estimates and outperform the market through 2030.

2. Marathon Digital
Marathon is the world's largest pure-play Bitcoin miner. It minted a record 12,852 bitcoins in 2023, representing a 210% increase from 2022, while its energized hash rate (which gauges its total mining power) rose 253%. It periodically sells its mined Bitcoin to raise more cash, but it still ended the year with 15,126 bitcoins (worth $947 million as of this writing) and $357 million in cash and cash equivalents on its balance sheet.

ADVERTISEMENT
Advertisement
Marathon could consolidate the Bitcoin mining market in the near future. During the past year, it already opened two new plants, launched a mining joint venture in Abu Dhabi, and agreed to buy several other mining sites. Therefore, I wouldn't be too surprised if it tries to buy its closest competitor Riot Platforms (NASDAQ: RIOT).

Story continues

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