As Bitcoin continues to consolidate within reach of its all-time highs, many investors, speculators, and traders wonder if a breakout is on the horizon. Currently trading at $67,100 per bitcoin and up almost 52% YTD, Bitcoin's critical short-term support level sits at $66,000, with $72,000 acting as critical resistance. Should Bitcoin break through this resistance, it could spark significant moves in Bitcoin-related stocks. Let’s take a look at four popular Bitcoin-related companies and assess which ones are best set up for a move higher if Bitcoin breaks out.
Marathon Digital Holdings' Focus on Bitcoin Mining
MARA
Marathon Digital
$20.28 +0.26 (+1.30%) (As of 06/18/2024 ET)
- 52-Week Range
- $7.16
▼
$34.09 - P/E Ratio
- 9.43
- Price Target
- $19.33
Marathon Digital Holdings NASDAQ: MARA focuses on Bitcoin mining, having rebranded in 2020. Despite its surge earlier in the year, MARA has underperformed, with shares down almost 15% YTD. The stock has a bearish sentiment, with a 22% short interest and analyst consensus predicting further downside. Technically, MARA does not show a bullish setup at the moment, making it less favorable for a breakout.
Analyst Forecasts and Buy Rating for Riot Platforms
$10.66 -0.25 (-2.29%) (As of 06/18/2024 ET)
- 52-Week Range
- $7.80
▼
$20.65 - P/E Ratio
- 12.25
- Price Target
- $18.10
Riot Platforms NASDAQ: RIOT aims to be a leader in Bitcoin mining in North America. Like MARA, RIOT has underperformed, with its stock down almost 30% YTD. It has a notable short interest of over 17%. Recently, short seller Kerrisdale Capital released a critical report on RIOT, claiming its business model is inefficient. Despite this, analysts maintain a buy rating, forecasting a potential 65% upside with a price target of $18.10. However, technically, RIOT does not currently present a bullish formation.
Evaluating MicroStrategy's Premium to Bitcoin Holdings
$1,469.43 -37.83 (-2.51%) (As of 06/18/2024 ET)
- 52-Week Range
- $289.69
▼
$1,999.99 - Price Target
- $2,012.40
MicroStrategy NASDAQ: MSTR, a global provider of enterprise analytics software, owns 214,400 bitcoins. Unlike MARA and RIOT, MSTR has outperformed, gaining 134% YTD. Trading at a premium to its Bitcoin holdings, MSTR could see a push over $1,800 if Bitcoin breaks out, potentially reaching new all-time highs above $2,000. However, notable short interest at almost 19% and significant insider selling over the past year suggest caution.
Coinbase Global: Leading Cryptocurrency Exchange
$235.95 -9.15 (-3.73%) (As of 06/18/2024 ET)
- 52-Week Range
- $53.63
▼
$283.48 - P/E Ratio
- 47.10
- Price Target
- $215.50
Coinbase Global NASDAQ: COIN is a major cryptocurrency exchange offering tools for trading over 200 cryptocurrencies. Technically, COIN looks the most favorable, currently consolidating above all major moving averages and 12% off its 52-week high. The stock is up over 40% YTD and has a relatively low short interest at 5%. Its recent earnings beat, reporting $1.65 EPS against an estimated $1.04 and revenue of $1.64 billion against $1.26 billion expected, positioning COIN well for further gains if Bitcoin breaks out.
The Bottom Line: Bitcoin-Related Stocks to Watch
As Bitcoin teeters on the brink of a potential breakout, certain Bitcoin-related stocks stand out for their readiness to capitalize on this move. While MARA and RIOT face bearish sentiment and technical setups, MSTR and COIN appear better positioned. MSTR could see significant gains if Bitcoin rallies, but caution is warranted due to insider selling, a hefty premium to its underlying and short interest. With its solid technical setup and recent earnings beat, COIN seems the best poised to benefit from a Bitcoin breakout.
Another option for a reactive move should Bitcoin break out is the iShares Bitcoin Trust ETF NYSE: IBIT, arguably the most popular and liquid Bitcoin spot ETF issued by Blackrock. Investors should, however, stay vigilant and cautious, as the cryptocurrency market’s volatility demands careful consideration and strategy.
Before you consider iShares Bitcoin Trust, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and iShares Bitcoin Trust wasn't on the list.
While iShares Bitcoin Trust currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Market downturns give many investors pause, and for good reason. Wondering how to offset this risk? Click the link below to learn more about using beta to protect yourself.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
