Bitcoin continues to reign supreme, often serving as a barometer for the entire digital currency market. While direct investment in Bitcoin remains a popular strategy, the broader landscape offers a plethora of opportunities for savvy investors. From tech giants capitalizing on the crypto boom to dedicated mining companies, there’s a world of stocks tethered to Bitcoin’s fate, often called a Bitcoin alternative. Here are the top 3 stocks to buy while Bitcoin stabilizes at 27K.
Bitcoin’s Price Stability Around $27,000
Bitcoin (BTC) has experienced a significant drop from its 2021 peak, with its price showing considerable fluctuations since reaching a 52-week high in July 2023. Despite these challenges, Bitcoin has managed to stabilize around the $27,000 mark, even nearing $28,000 on October 7. This stabilization suggests that Bitcoin might be on the verge of a phase characterized by reduced volatility and consistent growth.
Investing in Stocks vs. Holding Bitcoin
While Bitcoin remains a popular investment choice, diversifying one’s portfolio by investing in company stocks can offer a balanced approach. Companies that have exposure to Bitcoin or the broader crypto market can provide investors with the potential for growth while also mitigating the risks associated with holding only cryptocurrencies.
Top 3 Stocks to Buy as a Bitcoin Alternative
As the crypto market matures, it’s not just the direct holders of Bitcoin who stand to gain from its potential upswings. Companies that operate in the periphery of the Bitcoin ecosystem, whether through mining operations, technological infrastructure, or financial services, offer a unique proposition. Investing in these companies can be akin to buying stocks of gold miners during a gold rush. While the value of Bitcoin itself can be volatile, these companies provide goods and services that are in demand regardless of short-term price fluctuations. This approach allows investors to tap into the growth of the crypto sector while potentially buffering against some of its inherent volatility. Here are 3 stocks to buy:
#1 NVIDIA Corporation (NVDA)
A standout in 2023, NVIDIA is a leading name in the semiconductor industry. As a top graphic processing unit (GPU) designer, NVIDIA’s stock often benefits from a thriving crypto market. GPUs are essential for various tech sectors, including data centers, artificial intelligence, and cryptocurrency mining. With an impressive expected earnings growth rate of 220% for the current year and a Zacks Rank #1 (Strong Buy), NVIDIA is a stock to watch.
#2 Stronghold Digital Mining, Inc. (SDIG)
This company specializes in Bitcoin mining within the U.S. With an anticipated earnings growth rate of 98% for the current year and a Zacks Rank #3 (Hold), SDIG presents itself as a solid investment option for those interested in the crypto mining sector.
#3 CleanSpark, Inc. (CLSK)
CleanSpark focuses on mining Bitcoin while also developing sustainable infrastructure for the cryptocurrency. The company’s expected earnings growth rate for the upcoming year stands at 89%. Currently holding a Zacks Rank #3, CleanSpark’s position in the market remains steady.