3 Crypto Stocks to Buy That Can Rise 100% in the Next 12 Months

Bitcoin (BTC USD) is in a consolidation zone after a big rally over the last 12 months. I expect further consolidation between $60,000 and $70,000

Bitcoin (BTC-USD) has shown signs of consolidation following a remarkable rally over the past 12 months. As the world’s leading cryptocurrency continues to hover within a range, I anticipate further consolidation between $60,000 and $70,000 before another leg higher. Therefore, it might be an opportune time to identify some of the best crypto stocks to buy.

It’s crucial to note that the Federal Reserve is likely to cut interest rates several times over the next 12 to 18 months. An expansionary policy would equate to easy money, which serves as the primary trigger for an uptrend in Bitcoin. Given its limited supply, blue-chip crypto is naturally poised to trend higher as digital assets gain wider acceptance.

Moreover, the current cryptocurrency bull market is far from over. Well-known technical analyst Peter Brandt believes that Bitcoin’s ongoing bull market will peak at $200,000. This will likely translate into outsized returns for some of the best crypto stocks.

So let’s discuss three crypto stocks to buy that can rise 100% in the next 12 months.

Coinbase Global (COIN)

The trend in Coinbase (NASDAQ:COIN) stock for the current year mirrors that of Bitcoin. The crypto trading platform’s shares have largely moved sideways amid Bitcoin’s recent consolidation. I view this as an opportunity for accumulation, especially considering its forward price-to-earnings multiple of 31x.

In the last bull market, the peak of euphoria was associated with a surge in trading and speculative activity. This wave is yet to come and will bode well for Coinbase, which is one of the largest centralized exchanges globally.

A key differentiator between the last bull market and today is the company’s geographic footprint. Previously, Coinbase was focused solely on the U.S. markets. However, with aggressive international expansion, the crypto exchange now has a presence in 38 countries. As a result, the sales potential is significantly higher, boding well for free cash flow.

I must also add here that Coinbase Prime, the company’s institutional trading platform, hit all-time highs in both trading volume and number of active customers during Q1 2024. This is another segment that’s likely to drive growth as the bull market rages on in the coming quarters.

Riot Platforms (RIOT)

Among Bitcoin mining stocks, Riot Platforms (NASDAQ:RIOT) appears to be deeply undervalued. After a 25% correction over the past 12 months, RIOT stock trades at a forward P/E ratio of 13.4x. Given the growth prospects, the valuation discount seems substantial.

The first point to highlight is that Riot boasts strong fundamentals. The Bitcoin miner has a debt-free balance sheet. Moreover, the company reported a cash buffer (inclusive of Bitcoin holdings) of $1.3 billion in Q1 2024. This enables Riot to pursue aggressive expansion.

A key expansion is already underway. Riot reported a hash rate capacity of 12.5EH/s for the first quarter of 2024 with the aim of increasing capacity to 31.5EH/s by the end of the year. Being a low-cost Bitcoin miner, this expansion will likely translate into robust revenue and EBITDA growth.

Furthermore, Riot plans to increase capacity to 100EH/s by 2027. If executed well, RIOT stock is likely to deliver multi-bagger returns from current levels. For now, I expect a strong recovery as new capacity boosts growth.

Block (SQ)

Within the fintech stocks universe, Block (NYSE:SQ) looks attractive. After a major correction, SQ stock has remained range bound over the past 12 months. I believe that a breakout to the upside is imminent after this period of consolidation, especially considering that SQ stock trades at an attractive forward price-to-earnings multiple of 19x.

One reason investors ignore Block is the perception that the company is focused heavily on Bitcoin and crypto. In the latest shareholder letter, Block clarified that only “3% of company resources are dedicated to Bitcoin-related projects.” As Bitcoin adoption increases and blockchain technology is utilized across industries, it’s likely that Block will increase its investments in crypto projects.

It’s also worth noting that Block did invest 10% of gross profit from Bitcoin products each month to purchase the cryptocurrency. As the value of Bitcoin increases, Block will benefit in the form of greater financial flexibility.

The company’s Cash App had over 21 million active users buying, selling or holding Bitcoin. As crypto becomes increasingly accepted as a payment method, Cash App usage for Bitcoin transactions will increase and add value to SQ stock.

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