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Top 3 Crypto Stocks to Buy in June 2024
Today we feature three of the best cryptocurrency stocks to buy in the second half of 2024. Wall Street has noticed that cryptocurrency stocks are capitalizing on the growing acceptance of digital currencies and attracting investors looking for diversification and growth. Numerous companies are emerging as exceptional choices. They provide essential services for the crypto economy while demonstrating strong financial performance and growth initiatives.
Since January, the S&P Bitcoin Index has already produced almost 65%. Locate Bitcoin (BTC-USD) witnessed exchange-traded funds (ETFs). record inflows amid growing demand for cryptocurrency-focused investments. In the meantime, Standard charter (OTCMKTS:SCBBF) revised its year-end price is 2025 March projection, anticipating Bitcoin’s potential surge to $150,000, driven by “sticky” institutional flows. As digital currencies led by Bitcoin gain traction, here are three of the best cryptocurrency stocks positioned to deliver profitable returns.
ECM Group (ECM)
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Let’s start our exploration of the best cryptocurrency stocks with ECM Group (NASDAQ:ECM), the largest futures exchange in the world. CME operates major derivatives, options and futures exchanges in Chicago and New York City, along with online trading platforms. The company boasts a broad business model and benefits from volatility-driven revenue growth.
At the end of April, the CME reported positive results first fiscal quarter 2024 results. Revenue reached $1.5 billion, up 3% year-over-year (YOY), driven in part by strong demand for its risk management products. Cryptocurrency average daily volume (ADV) reached a record 82,000 contracts, an increase of 70% compared to the previous quarter. Adjusted earnings increased 3% year over year to $2.35 per diluted share.
CME is known for comebacks free cash flow (FCF) for shareholders through extraordinary dividends. Since 2012, it has returned approximately $24.8 billion, including $2.3 billion in dividends paid in the first quarter alone. Looking ahead, management expects average annual earnings per share (EPS) growth of 4% through 2026. Meanwhile, CME expects to start trading Bitcoin in Switzerland to capitalize on the growing demand for cryptocurrency investments, according to a report by the Financial Times.
Year to date (YTD), CME stock is down 5% but offers a dividend yield of 2.3%. Shares trade at 20.7 times forward earnings and 22.63 times sales. Analysts have set a 12-month price target of $226, implying a 13% upside potential from current levels.
Global Coinbase (COIN)
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Next on our list of best cryptocurrency stocks is the cryptocurrency exchange Global Coinbase (NASDAQ:CURRENCY). In 2021, Coinbase became the first pure-play cryptocurrency trading platform to go public on Wall Street. With a 7% market share. of centralized stock exchange trading volume globally, the company provides financial infrastructure and technology for the crypto economy.
In the first quarter of 2024, Coinbase showed stellar performance. Revenue rose 122% year-over-year to $1.6 billion, driven by higher volatility and cryptocurrency prices. Transaction revenue rose to $1.1 billion, representing nearly 66% of total revenue. EPS rose to $4.40, compared to a loss of 34 cents per diluted share a year ago. The platform also recorded all-time highs in terms of trading volume and attracted a wave of institutional investors.
Coinbase’s strategic expansion into international markets is critical to sustaining its growth trajectory. In the first quarter, international revenues rose to 17% of the total, thanks to strengthening banking connections and localized strategies. In April 2024, Coinbase achieved a significant milestone by becoming the largest registered cryptocurrency exchange in Canada as “Limited retailer.”
COIN stock is up 60% since January. Shares trade at 34.5 times forward earnings and 49.4 times trailing sales. Analysts expect the stock to remain near its current price $250 per share.
Marathon Digital Holdings (MARA)
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We conclude our discussion on cryptocurrency stocks with Digital marathon (NASDAQ:MARA). Specializing in digital asset technology, the company focuses on cryptocurrency mining and the blockchain ecosystem.
MARA’s latest quarterly earnings were notable, with revenues reaching $165 million, a staggering 223% year-over-year increase. Net profit also increased 184% year-over-year to $337 million, driven by favorable Bitcoin prices. Notably, these results were reported before Bitcoin’s April halving event.
In the month of May MARA he strengthened his blocking victories by 32%, producing 616 Bitcoin despite a slight decline of 27% after the halving. This performance underlines the company’s commitment to expanding mining operations and capturing demand for cryptocurrency, solidifying its position in the industry.
Additionally, MARA aims to expand its computing power by 2024, using recent acquisitions and ample liquidity, as it transforms into a global technology company with a focus on sustainability. Management is also interested in expanding Marathon Digital’s global presence, aiming for 50% of revenues to come from overseas by 2028. With $1.6 billion in liquidity (cash plus cryptocurrencies), MARA appears well positioned to expand rapidly and achieve its growth objectives.
Despite the strong financials, MARA shares are down nearly 14% since January. Shares change hands at 37.8 times forward earnings and 8.5 times trailing sales. Finally, analysts’ 12-month price target of $23.50 indicates a potential upside of 20% from current levels.
As of the date of publication, Tezcan Gecgil did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. He brings over 20 years of experience in the US and UK and has also completed all 3 levels of the Chartered Market Technician (CMT) exam. Publicly she contributed to investing.com and the UK website of The heterogeneous madman.