Dividend Stocks

3 Crypto Stocks That Will Triple by 2025

Estimates suggest that the crypto industry can reach 1.2 billion people by 2025 even if it grows at a conservative rate. With increasing crypto adoption and with a likely end to the bear market, it’s a good time to consider some of the best crypto stocks to buy now.

Coming back to crypto adoption, I believe that regulation for the industry is the biggest catalyst. Be it retail or institutional investors, there is caution considering regulatory uncertainties.

The good news is that the European Union has approved the world’s first comprehensive crypto regulation. There is a possibility of crypto reforms in the U.S. in 2023.

Further, Bitcoin (BTC-USD) halving is due in 2024. Going by past instances, a major rally followed the halving event for the cryptocurrency. With a bullish outlook for cryptos, let’s talk about three crypto stocks that can triple by 2025.

RIOT Riot Platforms $12.08
COIN Coinbase $59.40
BITF Bitfarms $1.15

Riot Platforms (RIOT)

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After surging by 228% for year-to-date 2023, Riot Platforms (NASDAQ:RIOT) stock has been in a consolidation zone. I believe that RIOT stock is the best name among crypto mining stocks to buy. Assuming a scenario where Bitcoin remains in an uptrend, the stock has meaningful upside potential.

The first point to note is that Riot reported cash balance of $188 million as of Q1 2023. Additionally, the company had $202 million in digital assets.

This provides a total liquidity buffer of $390 million and positions Riot for aggressive expansion. The company also has zero debt in its balance sheet.

Another big positive is that Riot is a low-cost miner. For Q1 2023, the company reported direct cost of $9,438 for producing one Bitcoin. If Bitcoin trades near previous highs, Riot will deliver healthy EBITDA margin and cash flows.

It’s also worth noting that Riot reported 144% increase in mining capacity on a year-on-year basis to 10.5EH/s. Given the bullish outlook for Bitcoin, mining capacity expansion is likely to remain aggressive.

Coinbase (COIN)

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Coinbase (NASDAQ:COIN) is among the best crypto stocks to buy now. Even if COIN stock triples from current levels, it would trade near $180. When the stock got listed in the last bull market, it made highs above $400.

Coming to the positive catalysts, Coinbase is planning aggressive global expansion. The company plans to make inroads into six continents. When trading volumes swell, this expansion drive will help the company accelerate revenue growth.

There are reports indicating that the crypto industry can potentially have 1.2 billion users by 2025. With Coinbase being among the top three centralized exchanges globally, there is ample headroom for user growth.

The company is well placed financially and ended Q1 2023 with cash and equivalents of $5.3 billion. This gives ample financial flexibility to invest in platform development and expansion. Besides retail users, an increase in institutional investors will be a key growth driver for Coinbase.

Bitfarms (BITF)

Source: PHOTOCREO Michal Bednarek / Shutterstock.com

Coinbase is a well-established cryptocurrency, while Riot Platforms is an emerging Bitcoin miner. I would add one penny stock to the list of best crypto stocks to buy now.

Bitfarms (NASDAQ:BITF) stock has surged by 165% for year-to-date 2023. I however believe that the stock is undervalued and 3x to 5x gains from current levels seems likely by 2025.

It’s worth noting that for Q1 2023, Bitfarms reported $30 million in revenue and $6 million in EBITDA. The company’s EBITDA surged by 500% on a year-on-year basis as Bitcoin trended higher. With sustained growth in hashing capacity, Bitfarms is positioned to deliver healthy cash flows in the coming years.

I also like the fact that Bitfarms has reduced debt by $140 million in the last 10 months. As of April 2023, the company reported $19 million in debt and a total liquidity buffer of $41 million. Strong financial flexibility provides scope for sustained expansion in mining capacity.

On the date of publication, Faisal Humayun 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 the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.