Eight years ago, Bitcoin traded at $100.
At that price, you could have bought 100 of them for $10,000.
Today, Bitcoin trades at $63,928 – a gain of 63,828%. That means if you bought 100 Bitcoin eight years ago for $10,000, your investment would be worth about $6.4 million.
$6.4 million. I’m still kicking myself for not buying.
However, $63,928 may be nothing, as compared to what’s possible.
Fundstrat Global Advisors’ Tom Lee, for example, says Bitcoin could run to $100,000 this year. Fidelity’s director of global macro, Jurrien Timmer, as noted by Yahoo Finance, says Bitcoin could hit $100,000 by 2023.
“So this move up [in bitcoin] has come without the help of momentum chasers, which I think is a good sign because it means there is something else making bitcoin go up. And, that is the fundamental demand for bitcoin and its network. When I come up with $100,000 [for bitcoin prices], that’s a conservative estimate based on the intersections of my supply model and my demand model,” says Timmer.
MicroStrategy CEO Michael Saylor told CNBC Bitcoin could one day have a market cap of up to $100 trillion. Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, as noted by CNBC, says Bitcoin could rally to $500,000 by the end of the decade.
All thanks to big interest from retail and institutional support.
According to Gemini’s 2021 State of Crypto in the U.S.:
“In 2020 we witnessed institutional investors step forward in public support of cryptocurrency and major companies like PayPal, MicroStrategy, and Twitter put forward plans to either support crypto payments or openly invest in it themselves by adding it to their balance sheets. The first few months of 2021 have shown no signs of crypto slowing down, as decentralized finance takes hold as a megatrend and bitcoin’s bull run continues to break price records.”
In addition, that report found that about 14% of the U.S. population owns cryptocurrency, or about 21.2 million people.
Even major companies have also gotten involved. PayPal, MicroStrategy, Tesla, Mastercard, Goldman Sachs, JP Morgan, Citi are all getting in on the cryptocurrency boom.
While investors can always buy Bitcoin, there’s also a great deal of opportunity in undervalued Bitcoin mining stocks and related ETFs, including:
Marathon Digital (MARA)
Riot Blockchain (RIOT)
Bit Digital (BTBT)
HIVE Blockchain Technologies (HIVE)
Amplify Transformational Data Sharing ETF (BLOK)
Top Stock No. 1 — Marathon Digital Holdings (MARA)
Bitcoin miner, Marathon Digital is one of the top beneficiaries of the cryptocurrency boom.
Since bottoming out around 62 cents in early 2020, MARA exploded to a recent high of $53.91 – good for a return of about 8,600%.
If it can now break above prior resistance at $57.75, it could test $60 next with solid catalysts.
At the moment, the company has about 7,035 Bitcoins, valued at about $336.3 million. All after adding another 340.6 Bitcoin just in the month of September.
It also has an existing fleet of about 25,272 active miners, which produce 2.7 EH/s. By the middle of 2022, the company plans to have about 133,120 miners deployers, generating up to 13.3 EH/s. That could help lead to massive growth down the line.
In addition, as noted by Fred Thiel, Marathon’s CEO:
“In the third quarter, we increased our bitcoin production by 91% quarter-over-quarter to 1,252 BTC, which increased our total bitcoin holdings to approximately 7,035 BTC,” said CEO Fred Thiel. “Our September production figures were impacted by a material increase in the total network’s hash rate, the ‘luck’ factor inherent in bitcoin mining.”
“While some amount of downtime and ‘luck’ will always be present in bitcoin mining, affecting results in the near-term, we believe our production will become more stable over time as we continue to bring new miners online and achieve greater scale,” he added.
Analysts like the stock, as well. DA Davidson analyst Christopher Brendler, for example, has a buy rating and a $65 price target thanks to new mining rigs coming online.
Top Stock No. 2 – Riot Blockchain (RIOT)
Riot Blockchain has been just as explosive.
Since bottoming out 51 cents in early 2020, RIOT hit a high of $61.27 earlier this year. Following some bumps, bruises, and Bitcoin downside, the RIOT stock is oversold at $30.83 at the moment. However, we don’t expect that to last too long. In fact, with Bitcoin pushing to new highs, we believe RIOT could re-test its prior high before long.
Most recently, the company announced it produced 406 Bitcoin in September – a year over year increase of about 346%. Year to date, through September, the company has now produced about 2,457 Bitcoin, an increase of 236% year over year, as well.
Growth does not appear to be an issue here. Unless Bitcoin decides to plummet, RIOT could see higher highs. Again, we’d like to see it test that prior high of $61.27.
Even more impressive were second quarter earnings. Mining revenue was up 1,540% to $31.5 million for the quarter, as compared to $1.9 million year over year. Mining revenue margins jumped 70% from 25% year over year. It also produced net income of $19.3 million, or 22 cents a share, as compared to a year-earlier loss of $10.6 million, or 31 cents a share.
Down the line, the company wants to achieve a total hash rate of 7.7 EH/s, assuming it can deploy its fleet of 81,146 active miners.
DA Davidson analyst Christopher Brendler is also a fan, initiating a buy rating on the RIOT stock with a price target of $42 a share. “The analyst cites the company’s largest mining operation in the U.S. providing them with scale, along with its “cheap” power and experienced management team,” as reported by TheFly.com.
Again, at the moment, RIOT is oversold and could test $61.27 on the Bitcoin rally.
Top Stock No. 3 – Bit Digital (BTBT)
At $11.35, Bit Digital is another hot miner to consider.
After bottoming out around 38 cents in early 2020, the BTBT stock ran to a high of $33 before sliding to $4.54 on a Bitcoin pullback. Now back to $11.35, we believe the stock could re-test its prior high of $33 with Bitcoin hitting new highs.
Helping, the company posted Q2 2021 revenue of $28.3 million from mining operations. It also produced 562.9 Bitcoins in the quarter – a hefty number, especially with Bitcoin above $60,000.
More impressive, since inception, the company has mined 3,086.50 Bitcoin. Bit Digital also has 32,500 Bitcoin miners since inception, too. Better still, with China’s ban on Bitcoin mining, the company moved its operations to the United States. It also picked up a buy rating from H.C. Wainwright analyst Kevin Dede, who has a $14 price target.
“The company has transformed ‘from an obscure technology opportunist, to a full-fledged, transparent, North American-based industrial bitcoin miner,’” Dede said, as quoted by TheFly.com. “The analyst says Bit Digital is leveraging relationships to build a ‘formidable’ North American footprint and industrial bitcoin mining hash.”
We have no doubt BTBT is committed to success here. In fact, the more we learn about BTBT, the more we like it.
Top Stock No. 4 – HIVE Blockchain Technologies Ltd. (HIVE)
Or, take a look at $1.4 billion HIVE Blockchain Ltd., which runs green energy-powered data facilities in Canada, Sweden, and Ireland.
All of which produce digital currencies, such as Bitcoin and Ethereum.
In early 2020, HIVE traded around seven cents. It’s now up to $3.64. From here, if it can break above prior resistance at $3.75, it could test $5 shortly after with solid catalysts.
One, in its most recent earnings report, the company reported gross revenue of $37.2 million from mining – a massive 466% jump year over year. Net income came in at $18.6 million from $1.8 million year over year. Gross mining margins were up to $31 million from $2.6 million as well. Even net income per share rocketed from nil to five cents.
Two, over the last few months, HIVE received approval from NASDAQ to list its common shares. That should give it far more exposure to millions of investors.
Three, the company recently achieved its target of 1 Exashash per second, or EX/s of the Bitcoin mining hashrate. From here, the company wants to achieve 3 EX/s by the end of 2022. It also has 1,845 Bitcoin miners deployed in Quebec and New Brunswick.
Top Stock No. 5 – Amplify Transformational Data Sharing ETF (BLOK)
The Amplify Transformational Data Sharing ETF is a great way to gain exposure to multiple companies that are involved in the development and utilization of blockchain technologies.
With an expense ratio of 0.71%, the ETF offers exposure to Marathon Digital Holdings, Hut 8 Mining, HIVE Blockchain, as well as large cap companies that have invested millions in Bitcoin. That includes Coinbase Global, Microstrategy Inc., Paypal Holdings, and Square for example.
Investors can gain exposure to these top companies at $52 a share.
While the BLOK ETF has been trading sideways around $52 for the last few months, it could break out, and re-test its $60 highs. For one, the ETF holds some of the hottest mining stocks, and Bitcoin investors. Two, a new Bitcoin futures ETF just launched, which is a great catalyst for Bitcoin and related stocks. Three, we like how well positioned this stock is for massive growth.
Since bottoming out around $13.33 in early 2020, the ETF is now up to $52. From here, we’d like to see a near-term retest of $60 highs.