Bitcoin recently reached a new record high, making crypto stocks even more attractive right now. In this article, I have identified two crypto stocks that are well-positioned to benefit from the blockchain boom and deliver outsized gains over the next 12 months.
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Is this crypto stock a good buy?
Valued at a market cap of US$90 billion, Coinbase (NASDAQ:COIN) is the largest cryptocurrency exchange in the U.S. Today, Coinbase is at the epicentre of crypto’s institutional revolution, transforming from a retail-focused exchange into the backbone of digital asset infrastructure.
Coinbase’s institutional momentum is undeniable. The company custodies assets for the majority of Bitcoin and Ethereum ETFs (exchange-traded funds), which have attracted over US$120 billion in just 18 months.
Management emphasizes that the “Crypto-as-a-Service” model now serves over 200 financial institutions, including partnerships with BlackRock’s Aladdin platform, which demonstrates how traditional finance is increasingly relying on Coinbase’s infrastructure.
The US$2.9 billion Deribit acquisition represents the largest deal in crypto history, giving Coinbase a 75% market share in options trading. This completes the derivatives portfolio, spanning spot, futures, and options, addressing the fact that 75% of global crypto volume is concentrated in derivatives. The sticky nature of options trading provides revenue durability through market cycles.
Moreover, Stablecoins are likely to emerge as a massive growth catalyst, with USDC balances tripling on the platform over two years. Coinbase views payments as the next frontier, with businesses adopting crypto rails for faster and cheaper global transactions. The company is already using USDC for internal vendor payments.
With crypto’s total addressable market expanding rapidly and Coinbase’s 13-year head start in building proprietary technology, it appears positioned to capture disproportionate value as digital assets achieve mainstream adoption.
Coinbase was recently added to the S&P 500 Index, and the tech stock has now surged close to 600% in the last three years. Analysts tracking COIN stock estimate its adjusted free cash flow will improve from US$2.55 billion in 2024 to US$3.3 billion in 2025. If Coinbase stock is priced at 40 times trailing FCF, it could gain over 45% in the next eight months.
Is this crypto mining stock undervalued?
Valued at $610 million by market cap, Hive Digital (TSXV:HIVE) builds and operates data centres powered by green energy in Canada, Sweden, Iceland, Switzerland, and Paraguay.
HIVE Digital delivered a transformational fiscal 2025 (ended in March), positioning itself as a dual-play on Bitcoin mining and high-performance computing. In fiscal 2025, it generated US$115 million in revenue with US$56 million in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), demonstrating resilient execution through post-halving economics.
The standout story is HIVE’s aggressive scaling trajectory. The hash rate exploded from 4.7 exahashes to 11.5 exahashes, with management targeting 25 exahashes by November. This growth is driven by strategic expansion in Paraguay, which leverages green hydroelectric energy at competitive costs. The company projects US$400 million annualized revenue at 25 exahash with Bitcoin at US$100,000.
HIVE’s AI computing division, through its subsidiary Buzz, reached a US$20 million annual run rate, doubling in just six months. The recent acquisition of a 7.2-megawatt Toronto data centre will expand HPC capacity by 3.5 times, targeting annualized revenue of US$100 million by 2026.
With an industry-leading 22% return on invested capital and the sector’s lowest operational expenses per Bitcoin mined, HIVE combines operational excellence with upside potential as both Bitcoin and AI infrastructure demand accelerate.
