Why Hive Could Be the Best Stock to Buy in January

Bitcoin is trading at its all-time high. However, Hive’s stock continues to trade in the lower range, creating a buying opportunity.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published January 24, 2025 7:00 pm EST

Crypto investors have something to cheer about as one of their supporters, Donald Trump, took the oath to become the 47th U.S. President. For years, crypto has been vying to win over investors’ confidence as an alternative investing option. However, loose regulatory ends and a highly speculative nature kept traditional investors with big pockets at bay. This scenario is about to change in the United States, and 2025 could see the formation of yet another crypto bubble. Hive Digital Technologies (TSXV:HIVE) could be the best stock to buy in January if the bubble materializes.

data center server racks glow with light — Source: Getty Images

The best stock to buy in January

Just before Donald Trump took the oath, he launched his meme coin, $TRUMP, which soared to reach over US$10 billion in market value on January 20. His wife, Melania Trump, also launched her own cryptocurrency, $MELANIA, which crossed $1 billion in market value.

$TRUMP and $MELANIA are not exactly investments or securities but a token of support. Moreover, owing to their speculative nature, the cryptocurrency community is concerned about investing in them.

On the broader front, the Trump family’s entry into the crypto world at a time when he became the President has generated confidence among crypto investors, pushing bitcoin to a new all-time high.

What does the $TRUMP coin mean to crypto?

The last time the crypto bubble formed was from November 2020 to November 2021, and driving this trend was Elon Musk with his hype around Dogecoin. Over the years, several crypto coins have been hyped and become the mode of speculative trades. The problem with such speculative coins is they can be wealth creators and destroyers.

However, Bitcoin, the first crypto coin, has sustained all crypto bubbles and generated wealth for its investors. It is the only crypto that has received recognition from fund managers. One big milestone Bitcoin achieved in the last crypto bubble was the launch of the world’s first Bitcoin ETF. The Purpose Bitcoin ETF was launched in Canada in February 2021, and those who invested at the launch have doubled their money in almost five years.

This year, BlackRock, one of the largest investment firms, launched Bitcoin ETF iShares Bitcoin ETF.

Why Hive could be the best stock to buy in January

Feeling the momentum, HIVE went closer to where the action was. It relocated its head office from Vancouver, Canada to San Antonio, Texas.

While Bitcoin ETFs can give you exposure to Bitcoin price fluctuations, Hive can give you more than that. Bitcoin ETFs are relatively new, and their cost of buying and holding Bitcoin is high. Hive is a blockchain company and one of the earliest miners of Bitcoin. No one can take away this advantage from Hive. It has been mining Bitcoin for over a decade and enjoys a competitive hash rate. Hence, when Bitcoin prices rise, the Hive stock price grows faster than Bitcoin ETFs.

Another advantage of Hive is its three graphic processing unit (GPU) data centres in Canada, Sweden, and Iceland. It is building a fourth one in Paraguay that could significantly boost its mining capacity. The company can give you the advantage of capturing the crypto bubble rally. HIVE is diversifying its revenue stream to offer high-performance computing (HPC) capacity to earn a relatively stable source of income.

Now is a good time to invest in Hive stock while it trades below $5 and hold it till the end of the year. If all the attention to the crypto market leads to another bubble, your investment could grow 500–800%. If the hype is short-lived, at least the stock could cross the $8 mark and maybe even double your money in a few months.

Investor takeaway

The 2025 Tax-Free Savings Account (TFSA) contribution room of $7,000 gives you enough scope to invest $500 per month in your core portfolio of stocks with strong fundamentals, leaving you with $1,000 for opportunistic and riskier investments. You could consider investing $500 in Hive.

The stock trades closer to the lower end of its $4–$8 price range. The HPC computing revenue gives the stock support at $4. This reduces the risk of a downside, but the possibility of a crypto bubble creates significantly high upside potential.