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Bitcoin ( BTC-USD ) will likely be stronger than ever in 2024. There are several reasons to be optimistic about the cryptocurrency, which has already grown in recent quarters. A good alternative to investing in Bitcoin is to participate in an ETF. Additionally, investors can benefit from purchasing some of the best cryptocurrency stocks.
In particular, the introduction of the Bitcoin Spot ETF is an important catalyst that will lead to greater investor participation and broader adoption of cryptocurrencies. Since Bitcoin has halved this year, the cryptocurrency is likely to recover from this event.
Additionally, a potential interest rate cut by the Federal Reserve in 2024 will help Bitcoin. Expansionary monetary policy will increase liquidity in the financial system and accelerate the recovery of risky asset classes. Given the bullish outlook, let's talk about three crypto stocks you can buy for multiple returns this year.
Riot Control Panels (RIOT)
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Due to the recent drop in the price of Bitcoin, there has been a correction among Bitcoin miners. It looks like a good accumulation option, and Riot Platforms (NASDAQ: RIOT ) certainly looks attractive. As cryptocurrencies rise, RIOT stock could rise given its expansion plans.
Notably, Riot has a strong balance sheet. Debt-free and with $599 million in cash reserves (including digital assets), Riot can make significant investments to accelerate its growth. As hashing power increases and Bitcoin grows, I expect free cash flow to increase significantly over the next 12-24 months.
Specifically, in December 2023, Riot reported a hashrate of 12.4 EH/s. It is expected to increase to 28.8 EH/s by the end of this year, and by the end of 2025 it will be 38.1 EH/s. The expected rise in RIOT stock will occur when Bitcoin rises after a trend reversal.
Currency base (COIN)
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In terms of closing highs, Coinbase (NASDAQ: COIN ) shares traded above $350 in November 2021. When cryptocurrency winter arrived, COIN shares plummeted.
However, over the past 12 months, the coin has risen 175% from oversold levels. The rally is likely to continue into 2024, and COIN stock could rise 200% if Bitcoin trades above its previous all-time highs.
Coinbase's optimistic premise is simple. As Bitcoin grows, so will altcoins. Furthermore, commercial and speculative activities will increase. This will lead to a significant increase in brokerage revenues. Additionally, subscription revenues are expected to increase. Overall, the impact on revenue growth and EBITDA margin is expected to be significant.
Interestingly, Coinbase accelerated its global expansion in 2023. This included an eight-week expansion campaign across six continents. The company also plans to launch cryptocurrency derivatives in the European Union. So, compared to the recent bull market, Coinbase will have a larger market to contend with. This will lead to explosive growth and increased cash flow.
BitFarm (BITF)
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Among cryptocurrency stocks worth buying, Bitfarms (NASDAQ: BITF ) looks attractive even after rising 141% over the past 12 months. Bitfarms is a Bitcoin mining company with strong growth plans and a solid balance sheet. Furthermore, the company has an attractive Bitcoin mining cost, which means good EBITDA margins.
In terms of expansion, Bitfarms reported a hash rate of 6.3 EH/s in November 2023. The company plans to expand to 17 EH/s in the second half of 2024. With almost three times the mining power, Bitfarms can create stars. Revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). extension
Another highlight is that Bitfarms ended 2023 with $84 million in cash and $34 million in Bitcoin. This represents a total liquidity cushion of $118 million. This offers more flexibility for aggressive expansion plans. Furthermore, BITF wants to be debt-free by February. Therefore, a penny stock represents a company with strong fundamentals.
At the time of publication, Faisal Humayun does not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publishing guidelines .
Faisal Humayun is a senior research analyst with 12 years of experience in credit research, equity research and financial modeling. Faisal has written over 1,500 stock articles covering the technology, energy and materials sectors.
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