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3 Crypto Stocks to Buy for Multibagger Returns

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This may seem like the most inappropriate time to talk about crypto stocks.Investor confidence plummeted in the collapse FTX (FTT-USD). Bitcoin (BTC-US Dollar) is now well below the $20,000 level. This fact alone shows how much the FTX bankruptcy has affected the sector, causing further declines for most digital assets.

Amid these events, regulators may become increasingly concerned about investor protection. A more stringent regulatory framework may be put in place for decentralized assets. So, as this carnage rages on, it may be best to focus on crypto stocks rather than cryptocurrencies.


One reason is that cryptocurrency stocks already have regulatory oversight. Additionally, a significant correction provides a buying opportunity for investors who believe the sector will emerge from this crisis.

Either way, going too far with cryptocurrencies is not a good idea. Some (small) high-risk exposures can be considered. In the event of a potential sentiment reversal, quality crypto stocks can offer multi-bagger returns.

Today, let’s talk about three crypto stocks to buy in Doom and Gloom.

coin coin base $53.22
Mara marathon digital $9.52
SQ block $70.27

Coinbase (COIN)

Source: OpturaDesign / Shutterstock.com

FTX collapse is good news and bad news coin base (Nasdaq:coin). Investors considering cryptocurrency exchanges will be terrified in the near future. That could bring some downsides on the horizon. On the other hand, few exchanges appear to be strong enough to survive the bear market. These exchanges will recover with higher market shares in the coming years.

Coinbase appears to be positioned as one of those exchanges that will not only weather this crisis, but will find ways to grow.

It is important to point out that Coinbase had $5 billion in cash on hand in Q3 2022. Therefore, the company’s balance sheet is strong and should be able to weather the recession. Headcount reductions can also help stave off a company’s cash burn.

Coinbase has also benefited greatly from institutional adoption of crypto. The company’s institutional investors continue to grow. Crypto exchange in Q3 2022 partnered with black rockMany therefore hope that this partnership will make Coinbase one of the largest wealth management companies in the world with the Coinbase Prime connection.

Overall, Coinbase may continue to see cash burns over the next few quarters. However, crypto exchanges have a strong foundation. In addition, the company continues to invest in platform development, which will help Coinbase gain market share and could see its valuation skyrocket if the cryptocurrency rebounds.

Marathon Digital (MARA)

Bitcoin mining operation. Bitcoin mining farm. Gree stock.

Source: Michal Bednarek / Shutterstock

Bitcoin mining stocks have seen some of the most severe corrections during this bear market. The margins these companies generate are shrinking along with the value of digital assets on their balance sheets. marathon digital (Nasdaq:Mara) inventory is down 70% year-to-date. However, stocks definitely offer multi-bagger returns if a bitcoin reversal is expected.

Factors that may support long-term Bitcoin price increases include increased adoption, limited supply, and the planned halving in 2024.

Dedicated to Marathon Digital, the company continues to increase hash processing power. Marathon reported in early November. 7EH/s hash capacity. Hashrate to 23EH/s by June 2023As such, the marathon is expected to triple its capacity in the coming quarters.

Of course, this makes sense from a valuation standpoint up to the point where Bitcoin starts its uptrend. That said, Marathon has a strong balance sheet to weather this period of uncertainty. The next phase of the company’s expansion or diversification could be announced in 2023.

block (SQ)

Square, Inc. changes name to Block (SQ). A smartphone with a square logo on the screen held in hand against a background of block logos.

Source: Sergey Elagin / Shutterstock.com

block (New York Stock Exchange:SQ) is on a sustained downward trend and is one of the companies bottoming out at $51.30 per share. That said, SQ shares are currently over 40% above their lows.Following this rally, inventory Macquarie Research, $100 price target on SQ shares after the company reported strong Q3 2022 numbers.

Despite Block’s investment in expanding its blockchain, Cash App remains the company’s main profitability driver. Cash App gross profit for Q3 2022 was $774 million. 51% YoY increaseDuring the same period, Bitcoin made $1.76 billion in revenue with a gross profit of just $37 million.

decentralized financial services” We use Bitcoin. With the wide application of blockchain technology, there seems to be plenty of room for new business growth.

Recently, it was also reported that Jack Dorsey is building “web5” that runs on Bitcoin. Web5 will allow “a developer to create distributed web apps through her DID and distributed nodes.” It remains to be seen how this will end up. However, Block is one company worth putting on your buy list right now.

As of the date of publication, Faisal Humayun did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the subject author of InvestorPlace.com. Publication guidelines.

Faisal Humayun is a Senior Research Analyst with 12 years of industry experience in credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles focused on his sectors of technology, energy and commodities.

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