Top Crypto Stocks to Watch 2024: 5 Picks Right Now
The cryptocurrency market’s resurgence in 2024 has created ripple effects throughout the financial ecosystem, with Bitcoin’s price recovery leading the charge. This revival hasn’t just benefited direct crypto holders—it’s created substantial opportunities in the stock market for companies with significant blockchain exposure.
After spending time analyzing the market movements and speaking with several institutional investors at last month’s Consensus conference in Austin, I’ve identified five crypto-adjacent stocks that deserve special attention right now. These companies offer exposure to the digital asset space while maintaining the regulatory clarity that comes with traditional market listings.
1. Coinbase (COIN)
As the largest U.S.-based cryptocurrency exchange, Coinbase has positioned itself as the gateway between traditional finance and the crypto ecosystem. The company’s Q1 2024 financial results showed remarkable improvement, with revenue jumping 72% year-over-year to $1.57 billion.
What makes Coinbase particularly compelling now is its diversification strategy. Beyond trading fees, the company has expanded into staking services, institutional custody, and blockchain infrastructure. During a recent analyst call, CEO Brian Armstrong emphasized that “Coinbase is becoming an all-weather business” that can thrive in various market conditions.
The stock has certainly reflected this confidence, appreciating over 150% in the past year. However, regulatory uncertainties remain, as evidenced by ongoing discussions with the SEC regarding several aspects of their business model.
2. MicroStrategy (MSTR)
What began as a business intelligence software company has transformed into perhaps the most significant Bitcoin proxy in the public markets. Under CEO Michael Saylor’s direction, MicroStrategy has accumulated over 214,000 Bitcoin, worth approximately $13 billion at current prices.
This aggressive acquisition strategy has fundamentally changed the company’s investment thesis. As one portfolio manager at BlackRock recently told me, “MicroStrategy has essentially become a leveraged Bitcoin ETF with a software business attached.”
The company’s share price tends to amplify Bitcoin’s movements, making it a high-beta play on cryptocurrency markets. While this strategy has proven lucrative during upswings, investors should be aware of the heightened volatility and concentration risk involved.
3. Block (SQ)
Led by Bitcoin advocate Jack Dorsey, Block (formerly Square) has integrated cryptocurrency capabilities throughout its ecosystem. The company’s Cash App platform allows users to buy and sell Bitcoin directly, creating a seamless on-ramp for retail investors.
What makes Block particularly interesting is its balanced approach. Unlike MicroStrategy, Block maintains a diverse business model spanning merchant services, personal finance, and Bitcoin initiatives. This diversification provides some cushion against crypto market volatility.
In their latest quarterly report, Block disclosed $2.73 billion in Bitcoin revenue, though margins on these transactions remain relatively thin. The company’s TBD division is also developing decentralized finance infrastructure, potentially positioning Block to capitalize on future blockchain innovations.
4. Riot Platforms (RIOT)
As one of North America’s largest Bitcoin miners, Riot represents a more direct play on Bitcoin production. The company has expanded its operations significantly in recent years, with mining facilities now exceeding 1 gigawatt of capacity.
Riot’s competitive advantage lies in its energy strategy. Through power purchase agreements and strategic facility locations in Texas, the company can occasionally generate revenue by selling electricity back to the grid during peak demand periods.
However, mining economics remain challenging. The recent Bitcoin halving event in April cut mining rewards by 50%, putting pressure on all miners’ profitability. Riot’s success depends heavily on operational efficiency and managing electricity costs, which account for approximately 70% of mining expenses.
5. PayPal (PYPL)
While not a pure cryptocurrency play, PayPal has steadily increased its crypto footprint since launching buying and selling capabilities in 2020. The company recently expanded these services to include stablecoins, launching PayPal USD (PYUSD) last year.
What’s particularly notable about PayPal’s approach is its focus on practical cryptocurrency applications rather than speculative trading. The company’s enormous user base—over 430 million active accounts—provides unmatched distribution potential for mainstream crypto adoption.
According to data from Edison Research, approximately 17% of PayPal users have engaged with the platform’s crypto features, suggesting significant room for growth. CEO Alex Chriss has indicated that blockchain technology remains a strategic priority, particularly for cross-border payments and remittances.
Investment Considerations
Before jumping into crypto stocks, investors should understand several key factors. First, regulatory clarity remains elusive, with different agencies taking sometimes contradictory positions on digital assets. The outcome of ongoing regulatory developments could significantly impact these companies.
Second, these stocks typically exhibit higher volatility than the broader market. During my analysis of price movements over the past year, I found that crypto-related stocks had an average beta of 2.7—meaning they typically move 2.7 times more dramatically than standard market indexes.
Finally, valuation metrics for crypto companies often defy traditional analysis. Many firms trade at price-to-earnings ratios that would seem excessive in other sectors, reflecting the growth premium associated with emerging technology.
The intersection of blockchain technology and public markets continues to evolve rapidly. These five stocks offer various approaches to gaining exposure to the crypto ecosystem, each with its own risk-reward profile. As with any investment in emerging technologies, position sizing and diversification remain crucial considerations.
