Key crypto stocks for Q2 2023 include Applied Digital Corporation (APLD), NVIDIA Corporation (NVDA), and Riot Platforms, Inc. (RIOT). These were the downfalls of the broader cryptocurrency industry.
Crypto companies, represented by the Amplify Transformational Data Sharing ETF (BLOK), an exchange-traded fund (ETF), lost nearly a tenth of its value last year. At the same time, the benchmark Russell 1000 Index rose nearly 4%.
Below, we look at the top cryptocurrency stocks based on best value, fastest growth, and most momentum. All data below is as of May 25th.
Best Value Crypto Stocks
These are the cryptocurrency stocks with the lowest 12-month trailing (TTM) price-to-sales (P/S) ratios. For companies in the early stages of development or industries experiencing major shocks, this can serve as a rough proxy for enterprise value. Companies with higher sales are likely to generate more profits when they eventually reach or return to profitability. The P/S ratio tells you how much you are paying for your stock for each dollar of sales generated.
| Best Value Crypto Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap (Market Cap) ($M) | 12-month final profit margin | |
| Greenwich Generation Holdings Co., Ltd. (GREE) | 3.03 | 181.2 | 0.1 |
| Canaan Co., Ltd. (CAN) | 2.59 | 488.1 | 0.7 |
| Block Co., Ltd. (SQ) | 61.56 | 37,237.4 | 2.0 |
sauce: Y-chart
- Greenwich Generation Holdings Co., Ltd.: The company operates cryptocurrency data centers, power generation businesses, and cryptocurrency mining facilities. The company’s stock has plunged nearly 94% over the past year, prompting a one-in-ten reverse stock split in mid-May.
- Canaan Co., Ltd.: A Chinese technology company that provides high-performance computing services. It focuses on computing chip design, chip research and design, computing equipment manufacturing, and software services. The company supplies computing equipment to the cryptocurrency mining industry. Canaan shares have fallen more than a fifth of their share price over the past year following the disappointing results.
- Block Co., Ltd.: financial services and digital payments companies; We provide a platform that enables businesses to accept credit card and cryptocurrency payments. Block also provides financial and marketing services. Block’s gross profit increased by more than a quarter in the first three months of 2023. This was driven by Cash App’s significantly higher profit and narrower net loss from a year ago.
fastest growing cryptocurrency stocks
These are the cryptocurrency stocks with the highest year-over-year (YOY) revenue growth in the most recent quarter. Increased sales help investors pick out growing start-ups that have not yet achieved profitability. Additionally, earnings per share (EPS) can be significantly impacted by accounting factors that may not reflect the strength of the overall business.
However, sales growth can also be misleading about the strength of a business, as increasing sales in a loss-making business can be detrimental if the company has no plans to turn profitable. Companies with quarterly revenue growth over 1,000% were excluded as outliers.
| fastest growing cryptocurrency stocks | |||
|---|---|---|---|
| Price ($) | Market cap ($M) | Revenue growth rate (%) | |
| Robinhood Markets Inc. (HOOD) | 8.68 | 7,837.7 | 47.0 |
| Shift4 Payments Inc. (Four) | 66.92 | 3,972.5 | 36.1 |
| Block Co., Ltd. (SQ) | 61.56 | 37,237.4 | 26.0 |
sauce: Y-chart
- Robinhood Markets Inc.: Robinhood operates brokerage and cash management apps and platforms. Users can buy and sell stocks, ETFs, options and cryptocurrencies. Earnings increased nearly half in the most recent quarter driven by higher net interest income.
- Shift 4 Payment Co., Ltd.: This is a payment processing service provider. It offers software for trading and money transfer processes, and also enables cryptocurrency trading. Shift4’s revenue increased by more than a third in the latest quarter as the company added several new signing merchants.
- Block Co., Ltd.: See company profile above.
Most Momentum Crypto Stocks
These are the crypto stocks with the highest total returns over the past 12 months among the companies we studied.
| Most Momentum Crypto Stocks | |||
|---|---|---|---|
| Price ($) | Market cap ($M) | 12 Month Historical Total Return (%) | |
| Applied Digital Corporation (APLD) | 8.87 | 841.8 | 135.3 |
| NVIDIA Corporation (NVDA) | 379.8 | 939,294.5 | 123.9 |
| Riot Platforms, Inc. (RIOT) | 11.07 | 1,938.1 | 72.2 |
| Russell 1000 Index | N/A | N/A | 3.9 |
| Amplify Transformational Data Sharing ETF (BLOK) | N/A | N/A | -9.3 |
sauce: Y-chart
- applied digital: The company builds and operates data centers that power North America’s blockchain infrastructure and cryptocurrency mining. The company’s shares soared in mid-May after news that it had signed a $180 million deal to provide artificial intelligence (AI) cloud services to undisclosed customers.
- Nvidia: A company that manufactures and sells graphics processors and related software, some of which are used for cryptocurrency mining. NVIDIA’s stock soared 25% on May 25 after NVIDIA reported record data center earnings for its latest quarter, on the back of a partnership with Microsoft focused on AI systems and machine learning. bottom.
- riot platform: Bitcoin mining and digital infrastructure company. The company operates bitcoin mining operations in Texas and New York. We also have electrical switchgear engineering and manufacturing operations in Colorado. Riot stock has risen in recent weeks after analysts’ bullish earnings forecasts.
Risk of cryptocurrency stocks
Due to the high volatility, the cryptocurrency market carries a certain level of risk and price fluctuations are common. Before you start investing in cryptocurrencies, you should determine your risk tolerance and implement a solid risk management strategy.
The cryptocurrency market is dominated by speculative trading. Studies of blockchain activity show that currency trading remains the most popular use of cryptocurrencies. Crypto skeptics, including Warren Buffett, Bill Gates, and JP Morgan CEO Jamie Dimon, have all warned of the potential for a crypto bubble. Cryptocurrencies aren’t the only ones subject to speculative mania and irrational frenzy, but they are also risks to consider.
As it is a new technology, some degree of speculative behavior is to be expected, especially as blockchain technology matures. Novice investors, however, may be tempted by fraudulent investments, such as the herd instinct, the fear of missing an opportunity, or the greater fool’s fallacy, that can make a big difference between the calculated risk and the risk of damaging. We need to be careful about falling into difficult situations and psychological traps.
Advantages of cryptocurrency stocks
Cryptocurrencies have risks, but they also have the potential to bring huge profits. When Bitcoin started in 2009, the digital currency was essentially of little value. In the years that followed, its price jumped to pennies and eventually tens of thousands of dollars. Such profits may be one of the most important benefits of investing in cryptocurrencies.
Since cryptocurrency companies are a relatively new industry, they can also offer investors a unique opportunity to enter the blockchain industry. Blockchain has the potential to transform industries ranging from accounting and cloud computing to digital advertising and healthcare. Many cryptocurrency companies are also involved in blockchain, for example by providing computing power to support blockchain networks, so some of these companies also offer exposure to other industries. .
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As of the date of writing this article, the author does not own any of the above shares.
