After crashing spectacularly in 2022, Bitcoin (CRYPTO:BTC) prices have surged over 500% since the start of 2023. Valued at a market cap of US$1.88 trillion, Bitcoin is the seventh-largest asset in the world. At the time of writing, BTC prices are trading around $95,000, rising 115% in 2024.
Historically, Bitcoin enters a bull run every four years, which is centred on the halving event. The last Bitcoin halving event took place in April 2024, which means the prices of the digital asset will move higher over the next 12 months. Given these factors, here are two crypto stocks you can buy as Bitcoin nears the US$100,000 milestone.
Coinbase stock
Coinbase (NASDAQ:COIN) is the world’s second-largest cryptocurrency exchange, valued at US$77 billion by market cap. The crypto exchange’s performance is tied to BTC prices, as the cryptocurrency still accounts for the majority of its trading volumes.
Generally, trading volumes surge when sentiment is bullish, resulting in higher revenue and earnings for Coinbase. For example, during the last crypto bull run, Coinbase reported record revenue of US$7.83 billion in 2021. However, sales then fell to US$3.15 billion in 2022 and US$2.92 billion in 2023 as trading volumes nosedived. In the last 12 months, Coinbase sales have almost doubled to US$5 billion.
Notably, Coinbase is focused on diversifying its revenue base. In addition to transaction fees, it generates income from stablecoin deposits, blockchain rewards, custodial fees, and other subscription services.
In 2021, its transaction sales accounted for 87% of total revenue. In the last year, the number has fallen to 59%. Coinbase emphasized that subscription and services revenue will surpass US$2 billion in 2024, up from US$1.4 billion in 2023.
An asset-light business model allows the company to benefit from high operating leverage. For example, its free cash flow has grown to US$1.58 billion in the last four quarters, up from US$923 million in 2023. Priced at 58 times forward earnings, COIN stock might seem expensive. However, it still trades 13% below all-time highs and is a top investment choice for crypto bulls.
CleanSpark stock
CleanSpark (NASDAQ:CLSK) provides bitcoin mining and energy technology solutions globally. Its two primary business segments are digital currency mining, which mines Bitcoin, and energy, which provides engineering, design, hardware, solar, and energy storage solutions for microgrids and distributed energy systems to customers.
In the last 12 months, CleanSpark has more than doubled its revenue year over year to US$342.2 million. Analysts tracking the stock expect sales to surge to US$386 million in 2024 and US$654 million in 2025.
Comparatively, the bottom line is forecast to swing from a loss of US$1.29 per share in 2023 to earnings of US$2.68 per share in 2025. Priced at 5.2 times forward earnings, CLSK stock is relatively cheap, given its strong earnings expansion projections.
CleanSpark is expanding its operations and recently entered new markets such as Tennessee and Wyoming. These expansion plans allow the company to increase its mining hash rate and improve production capacity. From operating five mining sites in Georgia, CleanSpark now has more than a dozen sites in four states in the U.S., making it one of the largest Bitcoin mining companies in the world.
Given consensus price target estimates, analysts remain bullish on the Bitcoin mining stock and expect it to surge over 75%.
