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3 Best Crypto Stocks to Buy in May 2024, According to Analysts
Block, CleanSpark and MicroStrategy are the 3 best Cryptocurrency Stocks to buy in May 2024, according to Wall Street analysts. We used the TipRanks comparison tool for crypto stocks to determine the three stocks that have earned analysts’ consensus “Strong Buy” ratings.
Bitcoin (BTC-USD) prices have risen more than 69% so far in 2024, settling around $69,535 as of May 21. BTC has retreated 2.8% from its all-time high of $73,337.76 recorded on March 14, 2024. Following the Bitcoin halving event on April 19, the price and rewards for cryptocurrency miners halved to $3,125 Bitcoin. The halving event is modeled to reduce the supply of bitcoin in the system and tame inflation, pushing out rogue miners. Looking ahead, easing inflation and potential interest rate cuts could push Bitcoin and cryptocurrency stocks higher.
Let’s take a look at three cryptocurrency stocks that are highly favored by analysts.
Jack Dorsey’s Block is a financial technology company offering solutions through platforms such as Square, Cash App, Spiral, TIDAL and TBD. The company’s services include financial solutions, peer-to-peer payments, open source projects that promote Bitcoin adoption, and building an open development platform to facilitate access to Bitcoin.
Block is one of the largest investors in Bitcoin, with approximately 8,038 BTC ($573 million) on its balance sheet as of March 31. He has committed to investing 10% of his monthly gross profit from BTC products into Bitcoin purchases.
The fintech company exceeded both revenue and earnings per share (EPS) estimates. for the first quarter of fiscal 24. At the same time, it raised its outlook for the full fiscal year 2024, reflecting confidence in performance for the remainder of the year. The current block has 591 million dollars left share buyback plan.
Is SQ a good stock to buy?
With 29 Buys, six Holds and a Sell rating, SQ stock has a Strong Buy consensus rating on TipRanks. THE Average block price target of $90.98 implies an upside potential of 27.2% from current levels. SQ shares have gained nearly 18% over the past year.
CleanSpark is a Bitcoin mining company that uses a sustainable energy mix, including nuclear, hydroelectric, solar and wind, to power its mining operations. The company owns and operates data centers that run on low-carbon energy. CleanSpark has numerous mining facilities in Georgia, New York and Mississippi.
As of April 30, CLSK had a hashrate of 17.3 EH/s (exahash per second). It produced 721 BTC and held 5,739 BTC at the end of April. CleanSpark will acquire two Bitcoin mining sites in Wyoming, with 75 MW of power, for $18.75 million in cash. The agreement provides for the possibility of expanding the capacity of these sites by a further 55 MW. The acquisition is expected to increase CLSK’s hashrate by 4 EH/s once the sites are fully operational.
In Q2FY24, CleanSpark’s revenues increased 163% year over year to $111.8 million, surpassing the consensus of $106.62 million. Also, earnings from continuing operations were $0.58 per share, significantly better than the $0.07 expected by analysts. By comparison, CLSK had reported a loss from continuing operations of $0.23 per share in the second quarter of fiscal 2023.
Is CleanSpark a good stock to buy?
On TipRanks, CLSK stock has a Strong Buy consensus rating based on three buys and a hold rating. THE CleanSpark average price target of $19.55 implies an upside potential of 6.1% from current levels. Over the past year, CLSK shares are up 315.8%.
MicroStrategy develops and delivers industry-leading products artificial intelligence (AI)business analytics software solutions, mobile software and cloud-based services. In addition to this business model, MSTR firmly believes in Bitcoin, accumulating huge BTC reserves and using its software development capabilities to develop Bitcoin applications. As of April 26, MSTR held 214,400 bitcoins, worth $7.54 billion.
Although MSTR missing analysts’ EPS and revenue estimates by wide margins in Q1FY24, institutions continue to accumulate MSTR shares simply because of its huge BTC reserves. Also, Inclusion of MSTR in the MSCI World Index, effective May 31, makes it a bullish play in the Bitcoin space. Interestingly, MSTR stock has skyrocketed nearly 463% over the past year.
What is the future price of MSTR stock?
Despite weaker-than-expected quarterly results, analysts remain very optimistic about MicroStrategy stock. With four unanimous Buy ratings, MSTR stock has a Strong Buy consensus rating on TipRanks. THE MicroStrategy average price target of $1,678.75 implies an upside potential of 1.4% from current levels.
Key points
Anticipation of lower interest rates, cooling inflation, and the launch of spot Bitcoin ETFs have pushed BTC prices higher this year. After hitting the lowest lows during the pandemic, crypto company stocks are expected to rise in the coming quarters. Analysts are very optimistic about the above three cryptocurrency stocks. Investors can consider investing in them after thorough research.
