What Are the Best Bitcoin Stocks and Crypto Plays to Keep an Eye On? There are currently none.

What Are the Best Bitcoin Stocks and Crypto Plays to Keep an Eye On? There are currently none.

What Are the Best Bitcoin Stocks and Crypto Plays to Keep an Eye On? There are currently none.

Bitcoin's price has fluctuated over the last month and is now trading around $21,000, pushed down by inflation fears and hints of further fissures in the crypto ecosystem. A handful of Bitcoin equities — or firms with ties to the cryptocurrency — are also in the bottom.

None of the stocks listed here are currently available for purchase. Many have low ratings right now.

The gyrations in Bitcoin have come as speculators try to figure out where the economy is heading, as the Federal Reserve boosts its main interest rate to combat growing consumer costs.

Some consider Bitcoin to be a hedge against inflation. However, this is not always the case. Others have ascribed the Bitcoin price collapse to a flight to safety by more traditional investors, who ditched what they saw as a volatile "risk asset" in an uncertain economic environment.

"The institutional investor is paying careful attention to Bitcoin since many who bought in last year are now losing money," Edward Moya, senior market analyst at OANDA, recently stated in an emailed statement. ​

Tether, Terra, and the Effect on Bitcoin Stocks

Bitcoin's price has dropped significantly from over $57,000 at the start of December to a record $68,990.90 in early November.

This decline has threatened to consume other Bitcoin stocks. Coinbase (COIN) has announced an 18 percent reduction in employees after previously suspending recruiting and even rescinding certain employment offers. Concerns have developed concerning the financial health of business analytics firm Microstrategy (MSTR), which borrowed millions to purchase Bitcoin and make it its primary reserve currency.

In other news, the cryptocurrency lending site Celsius has filed for bankruptcy. Voyager Digital, a cryptocurrency dealer, did the same. Three Arrows Capital, a cryptocurrency hedge firm, has filed for bankruptcy.

The crypto sell-off also shook so-called stablecoins, which are digital assets whose value is tied to a more traditional asset, such as the dollar, and allow for more fluid trade inside the crypto ecosystem. TerraUSD, a stablecoin, has gone bankrupt. Tether, a popular stablecoin, momentarily dipped below its $1 value.

Bitcoin Stocks

Bitcoin stocks are not all created equal.

Some, like Riot Blockchain (RIOT), are in the Bitcoin mining industry. Some, such as MicroStrategy, simply purchase Bitcoin, allowing investors to trade the cryptocurrency on major markets. The development of Bitcoin ETFs may make such Bitcoin-buying firms less tempting.

Bitcoin miners and purchasers have a direct relationship with Bitcoin and the cryptocurrencies they own.

Other Bitcoin stocks function as the cryptocurrency's financial infrastructure. Silvergate Capital (SI) is a "crypto bank" that operates a digital currency trading platform. Coinbase is a popular Bitcoin and cryptocurrency exchange that generates money on transaction fees. However, the stock values of the firms are still influenced by the daily variations in Bitcoin and other crypto currencies, as well as trading activity for those digital currency.

Coinbase Stocks

Coinbase, a cryptocurrency exchange, has a Composite Rating of 19. It has an EPS rating of 35. Recently, shares have traded at a premium.

Coinbase lost $1.98 per share in the first quarter, falling far short of analysts' forecasts of an eight-cent profit per share. Revenue also fell short of estimates. The company's outlook for the current quarter was not optimistic.

"In April, we witnessed ongoing reductions in both crypto asset volatility and crypto asset values, which we believe are related to financial market weakness," the report added.

Coinbase also cautioned in a filing that if it went bankrupt, it would be unable to preserve consumers' crypto assets housed on the site.

"Moreover, because custodially held crypto assets may be considered the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers may be subject to bankruptcy proceedings, and such customers may be treated as our general unsecured creditors," the company explained.

As a result, users may be unable to regain their holdings. Traditional bank accounts and non-crypto brokerages are often more secure.

According to the report, Coinbase had $256 billion in conventional currency and cryptocurrencies for clients as of March 31, 2018.

Coinbase CEO Brian Armstrong stated on Twitter that there was "no chance of bankruptcy." He also stated that the caution was included in the filing owing to new SEC rules for public firms that store cryptocurrency on behalf of others.

Silvergate Capital Stock

Silvergate Capital is the parent firm of Silvergate Bank, which provides banking services for digital currencies in an attempt to keep up with the 24-hour trading tempo of cryptocurrencies.

Silvergate has a Composite Rating of 55 and an EPS Rating of 97.

In addition to typical commercial and residential loan services, Silvergate operates an exchange network via which its digital-currency clients and institutional investors can transmit money to the accounts of other Silvergate clients at any time. Its customers include bitcoin exchanges and institutional investors, and the network is utilized for cryptocurrency settlements.

Silvergate's network also enables digital-currency clients to borrow dollars from a bank in order to purchase Bitcoin, with Bitcoin serving as collateral. Silvergate intends to create a stablecoin this year.

"Through interactions with our clients, we discovered a need for a regulated and highly scalable US dollar-backed stablecoin to better enable them to move money without obstacles," it claimed in a recent statement.

The firm posted fourth-quarter profits per share and revenue that above estimates in April. Customers using digital currencies climbed by 9% from the previous quarter to 1,503.

Bitcoin Strategy ProShares

The ProShares Bitcoin Strategy ETF began trading in October, not long before Bitcoin reached its all-time high. It has since seensawed with Bitcoin. IBD has not assigned ratings to the BITO ETF.

The SEC has been hesitant to accept an ETF that is closely linked to Bitcoin's ups and downs. However, SEC Chair Gary Gensler signaled last year that the agency could be more open to applications for Bitcoin-linked ETFs.

Nonetheless, the US government is concerned about Bitcoin's volatility, energy use, and participation in illicit financial activities.

Bitfarms Stock

Bitfarms, a Bitcoin miner, is down from November highs. The first-quarter results for the corporation were mixed.

The stock has a Composite Rating of 39. It has an EPS rating of 76.

Signature Bank Stock

Signature Bank stock has fallen from all-time highs. The stock has a Composite Rating of 62. It has an EPS rating of 90. The stock is trading below its 200-day and 50-day moving averages.

Signet is a blockchain-based digital payments platform developed by Signature. The company's sales in the first quarter fell short of projections. However, profits per share were higher.

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