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3 Interesting Crypto Stocks Investors Should Buy Now

Investors who want to gain exposure to cryptocurrency without buying coins can look to buy stocks such as Robinhood and Coinbase right now

Most cryptocurrencies have generated exponential gains for investors in the last 18 months, driven by the widespread adoption of these digital assets. Several companies, including Tesla, Square, and MicroStrategy, hold Bitcoin on their balance sheets. Cryptocurrencies are now viewed as an alternate asset class and might even command a place in your growth portfolio.

But buying cryptocurrencies on a regulated exchange is not the only way to gain exposure to this disruptive segment. Here, we look at three stocks operating in the crypto space that make them top bets for 2022 and beyond, especially if the bull run continues in the future.

Robinhood Markets

Robinhood (NASDAQ: HOOD) gained traction as a discount broker amid the COVID-19, allowing the company to increase its user base at an accelerated pace. At the end of Q3, Robinhood had 22.4 million funded accounts and 18.9 monthly users with close to $100 billion of assets under custody.

Driven by the popularity surrounding meme cryptocurrencies such as Dogecoin, Robinhood expanded its user base in Q2. While crypto-related activity declined in Q3, this segment reported revenue of $51 million, which increased 860% year over year compared to revenue of just $5 million in the year-ago quarter.

Robinhood continues to develop products and services for its customers that include the rollout of crypto wallets. The company claimed over a million people had joined the crypto wallets waitlist to date, allowing it to expand its revenue base going forward.

Robinhood forecast sales to increase by 85% year over year to $1.8 billion in 2021. However, the outlook was lower than the 111% growth forecast by Wall Street.

Robinhood stock is now down 57% below all-time highs, allowing you to buy the dip.

Coinbase

A leading cryptocurrency exchange, shares of Coinbase (NASDAQ: COIN) are down 10% from record-highs on the back of less than impressive Q3 earnings. Its revenue was down 41% on a sequential basis at $1.3 billion. Analysts, on the other hand, estimated the company to report Q3 sales of $1.6 billion.

As the crypto market experienced a downturn in Q3, the monthly transacting users fell to 7.4 million in Q3, compared to 8.8 million in Q2, while trading volume was also down almost 30% at $327 billion.

However, the crypto giant still managed to generate $300 million in free cash flow, which can be used to expand its product offerings and invest in its growth story. Coinbase also confirmed it would launch an NFT marketplace on the Ethereum network. According to the company’s management, the NFT marketplace might surpass crypto trading revenue in the near future.

Hut 8 Mining

The final stock on my list is crypto mining company Hut 8 Mining (NASDAQ: HUT). This company provides you access to both Bitcoin and Ethereum without considering the option of holding them in a digital wallet.

Hut 8 ended Q3 with 4,729 Bitcoins on its balance sheet valued at $263.8 million. As of November 10, the total number of Bitcoin the company owns rose to 5,053, worth $430 million.

Hut 8 Mining is forecast to increase sales from $40.7 million in 2020 to $390.6 million in 2022. Comparatively, its adjusted earnings are expected to rise from $0.06 to $0.93 in this period.

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