With Bitcoin hovering near all-time highs, investors would be looking to gain access to the disruptive blockchain segment right now. In this article, I have identified two quality growth stocks that provide you with exposure to this rapidly expanding market, allowing you to generate outsized gains over the upcoming decade.
Is this crypto stock a good buy right now?
Valued at a market cap of US$104 billion, Coinbase (NASDAQ:COIN) is the largest cryptocurrency exchange globally. The tech stock has returned more than 475% to shareholders in the last three years as Bitcoin prices have risen from US$16,000 in early 2023 to US$120,000 today.
Coinbase has increased sales from US$3.2 billion in 2022 to US$6.6 billion in 2023. Meanwhile, analysts forecast revenue to reach US$8.2 billion by 2028.
The crypto heavyweight continues to expand its portfolio of products and solutions. It recently partnered with Shopify, bringing crypto payments to mainstream e-commerce. With over two million merchants now able to accept USDC payments on Shopify’s platform, this creates a new revenue stream and demonstrates the real-world utility of cryptocurrency beyond trading.
Coinbase’s acquisition of Deribit, the leading crypto options platform with 80% market share, expands its derivatives capabilities and enhances institutional offerings. This transaction positions Coinbase as having the most comprehensive trading portfolio in the crypto space, spanning spot, perpetuals, and options.
The new Coinbase Business product targets the underserved small and medium business market, offering comprehensive financial services including payments, treasury management, and earning opportunities with up to a 4.5% annual percentage yield on USDC holdings. This diversifies revenue beyond traditional retail trading.
Recently, BlackRock confirmed that its Bitcoin ETF now manages more than US$72 billion in total assets, with potential for continued institutional adoption in the future.
The upcoming Coinbase One card, offering 4% Bitcoin rewards, is expected to strengthen customer engagement while generating additional revenue through the American Express partnership.
Is this crypto mining stock undervalued?
Valued at a market cap of over $2.5 billion, Hut 8 (TSX:HUT) is a Canada-based crypto mining company. Hut 8’s Q1 results reflect the growing pains of strategic transformation, with revenue declining 58% to US$21.8 million from US$51.7 million year-over-year.
It reported a net loss of $134.3 million, primarily driven by a US$112.4 million non-cash loss on digital assets as Bitcoin’s price declined from US$93,000 to US$82,500 during the quarter.
Despite near-term headwinds, Hut 8’s strategic repositioning appears promising. The launch of American Bitcoin, a majority-owned subsidiary backed by Eric Trump, enables the company to separate its capital-intensive mining operations from its core energy infrastructure business. This structure creates predictable revenue streams through colocation, managed services, and shared services agreements.
Key operational improvements include a 79% increase in deployed hashrate to 9.3 exahash and a 37% improvement in fleet efficiency. Hut 8 maintains a robust balance sheet, holding 10,264 Bitcoin (valued at over US$1 billion) and having raised US$275.5 million through its equity program.
The 10.8-gigawatt development pipeline, including the 592-acre River Bend campus in Louisiana, positions Hut 8 for growth in high-performance computing and AI data centres.
With analysts maintaining bullish targets, the crypto mining stock is attractively positioned for investors betting on the energy infrastructure transformation, though volatility remains high at current levels.
