3 Crypto Stocks to Buy With a Bullish Outlook for Bitcoin (BTC-USD)

After a big rally in recent quarters Bitcoin (BTC-USD) seems to be consolidating. With the Bitcoin halving complete and the possibility of multiple rate cuts over the next 12 months, I am optimistic about new highs for Bitcoin.

After a strong rally in recent quarters, Bitcoin (BTC-USD) seems to be consolidating. However, I am optimistic about new highs for Bitcoin, given the completion of the halving and the possibility of multiple rate cuts over the next 12 months.

Additionally, there continues to be positive news for the crypto industry. With permission for ether (ETH-USD) ETF, cryptocurrencies are likely to remain in an uptrend. One way to profit from the bull market is through exposure to high-quality crypto stocks.

It’s worth mentioning here that chart expert Peter Brandt expects Bitcoin to scale $200,000 before the current bull market ends. Therefore, there are ample opportunities to make money with Bitcoin, altcoins and crypto stocks.

If the above goal is achieved for Bitcoin, some of the best crypto stocks are likely to deliver multi-bagger returns. I am focusing on centralized crypto exchanges and Bitcoin miners. So let’s discuss three crypto stocks to buy with a bullish outlook for Bitcoin and the broader crypto industry.

Coinbase (COIN)

Coinbase (NASDAQ:COIN) has seen a massive 300% increase in the last 12 months. However, the rally started from heavily oversold levels and COIN stock remains attractive.

Having been in a consolidation zone over the past two months, COIN stock is trading at a forward price-to-earnings ratio of 33.2, which seems attractive. I expect another breakout to the upside if the current Bitcoin rally continues.

An important point is that Coinbase has focused on this aggressive international expansion last year. Priority markets include Brazil, Europe, Singapore, Australia and the United Arab Emirates.

Hence, Coinbase has a larger addressable customer base in the current bull market. This should lead to robust sales growth and increased profitability.

It is also worth mentioning that Coinbase has a strong balance sheet. This provides sufficient flexibility for expansion and platform development.

As financial flexibility improves in the current bull market, Coinbase will be positioned to do so Accelerating revenue diversification. This will support a potential acceleration in revenue growth.

Riot Platforms (RIOT)

Riot Platforms (NASDAQ:REVOLT) appears to be trading with a valuation gap among Bitcoin mining stocks. It’s worth noting that RIOT stock has trended sideways over the past 12 months, even as Bitcoin surged.

With a P/E ratio of 18.9, the stock is a bargain.

It’s worth noting that Riot Platforms has ambitious growth plans based on strong fundamentals. As of Q1 2024, the company reported a cash buffer (including Bitcoin holdings) of $1.3 billion.

In addition, financial flexibility is high with a debt-free balance sheet.

As for expansion, Riot reported a hash rate capacity of 12.4EH/s as of the first quarter of 2024. The company is aiming for an increase by the end of the year Increase capacity up to 31.5EH/s. This should lead to excellent sales and EBITDA growth.

Riot has also set a goal of reaching 100EH/s Bitcoin mining capacity by 2027. Therefore, healthy growth is likely to continue in the next few years. I think it’s only a matter of time before RIOT stock explodes.

Bitfarms (BITF)

Let’s end the discussion on crypto ideas with a purchase of penny stocks that have the potential for multibagger returns. Bitfarms (NASDAQ:BITF) has been weak year to date, with a correction of 30%.

There are two reasons for the decline even as Bitcoin trends higher. First, BITF stock has taken into account the relative mining difficulty post-halving.

Additionally, Bitfarms raised $275 million earlier this year, and stock dilution has impacted stock sentiment. However, the stock appears to be in a consolidation zone and I expect a big breakout in the coming quarters.

In the first quarter of 2024, Bitfarms reported a hash rate capacity of 7EH/s. The company aims to do this Capacity expansion to 21EH/s by the end of the year.

With $124 million in liquidity and a debt-free balance sheet, Bitfarms has high financial flexibility.

For the first quarter of 2024, Bitfarms reported 67% year-over-year revenue growth to $50 million. Adjusted EBITDA increased 233% to $21 million over the same period.

As a low-cost Bitcoin miner, Bitfarms is positioned to deliver robust EBITDA and cash flows in the coming quarters. This will lead to significant price movements.

At the time 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 author, subject to those