We recently published a list of 10 Best Bitcoin and Blockchain Stocks To Buy Right Now. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against other best bitcoin and blockchain stocks to buy.
Crypto Market Updates: Where is Bitcoin Heading?
While Donald Trump had revealed his plans to make America the crypto capital of the world, he also stated that he would be sacking the chair of the Securities and Exchange Commission, Gary Gensler, who has led the SEC’s crackdown on the crypto market. Gensler tried to regulate the market which he believed to be at least partially made up of securities trading illegally.
The price of bitcoin rose above $80,000 for the first time ever following Donald Trump’s victory in the US elections. Other cryptocurrencies such as dogecoin which is the favorite coin of Elon Musk, a strong Trump supporter, also posted gains. On November 29, CNBC reported that Bitcoin was on pace to post a 38% gain for November which would make the month its best since February.
While Tom Lee, Fundstrat Capital CIO, is confident that Bitcoin is going to close well above $100,000 before year-end as he joined CNBC, Bitwise’s Matt Hougan previously appeared on CNBC to call the market a win-win post-election. According to him, there is a clear path right up to $100,000 by 2024’s end while $200,000 is completely reasonable for 2025 considering that the trend is up and is going to stay intact for a while. As of December 5, Bitcoin is trading at $101,158.
Meanwhile, there is a noticeable shortage on the supply side. Frank Speiser, Metafide CEO joined ‘The Exchange’ to discuss his Bitcoin outlook on November 29. He mentioned ETF inflows being at record highs, an intention by the new administration to assemble a strategic Bitcoin reserve, and smaller trades simultaneously showing up on the market. However, there is not enough Bitcoin to satisfy the current rising demand.
An interesting new statement on the US crypto market was recently made by Fed Chair Jerome Powell as he called Bitcoin a competitor for gold, not the U.S. dollar, negating the stance of those crypto fans who see Bitcoin as a possible replacement for the dollar. Powell sees Bitcoin as a speculative asset such as gold, rather than something comparable to a currency.
With the new administration expected to legitimize digital assets and Bitcoin surpassing $100,000, the market is yet to see how things unfold.
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Our Methodology
In order to compile a list of the 10 best bitcoin and blockchain stocks to buy right now, we used stock screeners and relevant ETFs to make a list of the most dominant companies. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best bitcoin and blockchain stocks to buy right now have been arranged in ascending order of their hedge fund holders, as of Q3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 42
Coinbase Global, Inc. (NASDAQ:COIN) offers an online platform for buying, selling, saving, earning, transferring, and using cryptocurrency. The firm also provides critical infrastructure for onchain activity and support builders. In 2023, the firm was reported to hold 5% of the global Bitcoin supply making it one of the largest Bitcoin holders globally.
Coinbase offers a comprehensive platform that powers the crypto economy comprising 245,000 ecosystem partners in over 100 countries The firm mentions five key strengths behind this platform which include trust, crypto-first technology, easy-to-use products despite the complex underlining technology, repeatable innovation, and significant scale as it securely stores over $90 billion in assets on the platform.
The third quarter went promising for Coinbase Global, Inc. (NASDAQ:COIN) as the firm marked its 7th consecutive quarter of positive adjusted EBITDA. The firm has tried to diversify its revenue over the years away from transaction fee revenue as it has shifted more of that to subscription and services revenue. In this regard, COIN is all set to surpass $2 billion in subscription and services revenue in 2024. The firm witnessed average native unit growth across staking, on-platform USDC, and custody despite softer market conditions in Q3.
In terms of reputation, Coinbase clearly wins as it serves as one of the longest-running crypto platforms where customers haven’t experienced a loss of funds as a result of a security breach. With a market-leading share of assets and one of the most trusted platforms for managing crypto globally, Coinbase is a known name in the crypto industry.
Overall, COIN ranks 3rd on our list of best bitcoin and blockchain stocks to buy right now. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than COIN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
