In this article, we look at the 10 best crypto-bitcoin stocks to buy instead of the overvalued Coinbase. You can skip our comprehensive analysis of the crypto industry and go directly to the 5 Best Crypto, Bitcoin Stocks To Buy Instead Of Too Much Coinbase.
San Francisco-based cryptocurrency exchange platform Coinbase Global, Inc. (NASDAQ: COIN) was launched on April 15 with a market capitalization of $ 86 billion. Coinbase CEO Brian Armstrong has become one of the richest men in the world after the listing, with about 40 million shares he owns in the firm, equivalent to about $ 16 billion. The company was founded by Armstrong in 2012 and is one of the largest crypto exchange platforms worldwide and facilitates the buying, selling and storage of digital currencies, including giants such as bitcoin and ethereum.
What is so special about Coinbase IPO?
The platform has more than 56 million users internationally, of which more than 6 million use the exchange every month. As a result of the increasing trade, the company generated more than $ 1 billion in annual revenue last year, up more than 135% compared to the previous year, as the pandemic strengthened the cryptocurrency-linked platforms. It has so far offered transactions worth more than $ 335 billion from more than a hundred countries.
News media has describe the public listing of Coinbase as a watershed moment for the crypto industry that will usher in the crypto gold rush and make the new technology mainstream. However, there is reason to be extremely cautious, as reckless financial advisers are investing investors to bet on crypto. There are several reasons for this. Coinbase was valued at more than $ 85 billion when it was listed, a capitalization that, according to stock experts, was overvalued. Peter Cohan, an American businessman and financial expert, has named the firm is not worth the price.
The numbers seem to support this opinion. Coinbase, on the day it became known, was valued close to the market capitalization of the investment bank HSBC Holdings plc (NYSE: HSBC) and bigger than other traditional names in the banking industry such as UBS Group AG (NYSE: UBS) and Banco Santander, SA (NYSE: SAN). These banks have trillions of dollars became assets under their supervision and have years of experience in how to turn them into profits. The higher valuation of Coinbase seems a bit confusing in this context.
Is Coinbase overvalued?
David Trainer, CEO of investment research firm New Constructs, compared the valuation of Coinbase to the boom in the aerospace and automotive industries in the early part of the second half of the twentieth century, saying that many companies were highly valued at the time. . but precious few survived. Although Coinbase may be overvalued, there is still reason to be generally positive in the crypto industry. The momentum that seems to have the preference for traditional finance in the fight against fintech is definitely changing.
The entire hedge fund industry is feeling the echo of the changing financial landscape. Its reputation has been tarnished in the past decade, during which its hedged returns could not keep pace with the uncovered returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge funds that have outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, we selected monthly newsletter shares. 197.2%, compared to 72.4% for the SPY. Our stock market outperforms the market by more than 124 percentage points (see details here). We were also able to identify in advance a select group of hedge funds that outperformed the market significantly. We have been following the list of these stocks since February 2017 and share them until 13 November with 13%. Therefore, we believe that the hedge fund is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of 10 best crypto-bitcoin stocks to buy instead of the overvalued Coinbase.
10. Riot Blockchain, Inc. (NASDAQ: RIOT)
Riot Blockchain, Inc. (NASDAQ: RIOT) is a Bitcoin mining company based in Colorado. The firm supports Bitcoin blockchain by mining the cryptocurrency on an industrial scale. Riot employs more than 7,000 miners for the purpose and is currently based in the United States alone. The company is one of the largest crypto-mining companies trading in the world and plans to expand to countries outside the US in the future. It ranks tenth on our list of 10 best crypto-bitcoin stocks to buy instead of the overvalued Coinbase.
The company has a market capitalization of more than $ 4.2 billion and reported more than $ 12 million in annual revenue in December 2020, almost $ 6 million over the previous year. The 52-week company stock price range is between $ 5.3 and $ 0.6. Earlier this month, Riot announced that it had acquired Whinstone US, a firm that operates collocation data centers for cryptocurrency mining. Riot’s share price jumped more than 5.5% earlier in the week after announcing that Bitcoin production rose 80% in March compared to the previous year.
9. HIVE Blockchain Technologies Ltd. (TSXV: HIVE.V)
HIVE Blockchain Technologies Ltd. (TSXV: HIVE.V) is a Vancouver-based enterprise focused on using supercomputer assets and cloud software to exploit popular cryptocurrencies such as Ethereum and Bitcoin. The company says the operations provide the firm’s shareholders with a way to the margins associated with cryptocurrency mining. The firm’s share price is closely linked to Bitcoin and as Bitcoin prices rise, HIVE share also soars. It ranks ninth on our list of 10 best crypto-bitcoin stocks to buy instead of the overvalued currency base.
The company has a market capitalization of more than $ 1.2 billion and in March 2020 achieved more than $ 29 million in annual revenue, slightly below $ 31 million the previous year. The 52-week price range of HIVE shares is between $ 5.75 and $ 0.16. Last month, the firm announced that it had entered into a strategic partnership agreement with financial services firm DeFi Technologies for a share swap arrangement. Under the agreement, HIVE would receive 10 million DeFi shares for 4 million HIVE shares. The transaction is expected to be completed by the end of this week.
8. Marathon Digital Holdings, Inc. (NASDAQ: MARA)
Marathon Digital Holdings, Inc. (NASDAQ: MARA) is a Las Vegas-based company that mines cryptocurrencies. It concentrates on the blockchain ecosystem and digital assets. The company plans to expand its current operations from more than 2,600 Bitcoin miners to 103,000 miners. Marathon’s own data center, located in Hardin MT, has a maximum power capacity of 105 Megawatts. The company ranks eighth on our list of 10 best crypto, bitcoin stocks to buy instead of the overvalued Coinbase.
The company has a market capitalization of more than $ 4.25 billion and posted more than $ 4 million in annual revenue in December 2020. The firm’s 52-week share price tells a story of every other cryptocurrency firm, high risk and high reward game, as it hangs between $ 57.7 and $ 0.3. Last month, the company announced that it had entered into an agreement with crypto-technology firm DMG Blockchain Solutions to license DMG’s own blockchain technology to crypto-miners in North America. Marathon also launched a North American Bitcoin mining pool.
7. Argo Blockchain plc (LSE: ARB.L)
Argo Blockchain plc (LSE: ARB.L) is a London cryptocurrency company focusing on large-scale digital currency mining. The mining operations are located in locations scattered throughout the United States and Canada. The firm claims that the operations it does are more energy efficient minning – crypto-mining consumes a lot of electricity – than that of other businesses. This efficiency has better overall margins for the business in the long run, something it markets to potential investors around the world.
It has a market capitalization of more than $ 1.05 billion and had nearly $ 6.8 million in revenue in the second quarter of 2020, slightly lower than $ 6.9 in the previous quarter. The 52-week company stock price range is $ 4.6- $ 0.9. In January, the firm reported that they mined 96 Bitcoin in December 2020, compared to 115 Bitcoin mined in the previous month. Peter Wall, CEO of Argo, said the firm was excited because the crypto market had entered the new year in a new way and that a wider use of cryptocurrencies was expected during the year.
6. Canaan Inc. (NASDAQ: CAN)
Canaan Inc. (NASDAQ: CAN) is a China-based technology company that manufactures computer hardware such as microprocessors. The company specializes in Blockchain servers and microchip solutions for use in bitcoin mining. It is also involved in the assembly, supply chain and distribution of system products. The company also has an interest in the artificial intelligence and data center industry. It was founded in 2013 and is eight on our list of ten best bitcoin stocks you can buy, instead of the overvalued Coinbase.
The market has a market capitalization of more than $ 2.1 billion and in December 2020 achieved more than $ 68.5 million in annual revenue, with more than $ 140 million over the previous year, because of the pandemic the sales of the company hit. The firm’s shares have risen due to rising Bitcoin prices. The 52-week company stock price range is between $ 39.1 and $ 1.7. On April 15, a law firm announced that a group of investors could institute a class action lawsuit against the firm for alleged security fraud.
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Disclosure: None. 10 Best Crypto, Bitcoin Shares to Buy Instead of an Overvalued Currency Base is originally published on Insider Monkey.