Top cryptocurrency stocks for Q2 2023 include Applied Digital Corp. (APLD), NVIDIA Corp. (NVDA), and Riot Platforms Inc. (RIOT), which have risen as much as 135% in the past year, even as the broader crypto industry has plummeted.
Cryptocurrency companies represented by the Amplify Transformational Data Sharing ETF (BLOCK), a exchange-traded fund (ETF), have lost almost a tenth of their value in the last year. At the same time, the benchmark Russell 1000 index is up nearly 4%.
Below, we break down the top cryptocurrency stocks based on best value, fastest growth, and biggest momentum. All data below is as of May 25.
best value cryptocurrency stocks
These are the lowest priced cryptocurrency stocks 12-month follow-up (TTM) sale price (P/S) relationship. For companies in the early stages of development or industries experiencing major shocks, this can be substituted as a rough measure of a company's value. A business with higher sales could eventually produce more profit when it achieves or returns to profitability. The P/S ratio shows how much you are paying for the stock for each dollar of sales generated.
| best value cryptocurrency stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization (Market Cap) ($ million) | 12-Month P/S Ratio | |
| Greenidge Generation Holdings Inc. (GREEN) | 3.03 | 181.2 | 0.1 |
| Canaan Inc. (CAN) | 2.59 | 488.1 | 0.7 |
| Block Inc. (square) | 61.56 | 37,237.4 | 2.0 |
Fountain: YGraphics
- Greenidge Generation Holdings Inc.: This company operates cryptocurrency data centers and power generation businesses, as well as cryptocurrency mining facilities. Shares of the company have plunged nearly 94% in the past year, prompting a 1 in 10 rate reverse division in mid-May.
- canaan inc: A Chinese technology company that provides high-performance computing services. It focuses on computer chip design, chip research and design, computer equipment production and software services. The company supplies computer equipment to the crypto mining industry. Canaan shares have lost more than a fifth of their value in the past year amid disappointing earnings.
- block inc.: A financial and digital services company Payments firm. It provides platforms that allow businesses to accept credit card and cryptocurrency payments. Block also offers financial and marketing services. Block's gross profit increased by more than a quarter during the first three months of 2023, buoyed by substantial gains in Cash App earnings that helped reduce its net loss from a year ago.
Fastest growing cryptocurrency stocks
These are the crypto stocks with the highest year after year (YOY) recent sales growth room. Increased sales can help investors pick up new growth companies that have not yet reached profitability. Besides, earnings per share (EPS) may be significantly influenced by accounting factors that may not reflect the overall strength of the business.
However, sales growth can also be potentially misleading about the strength of a business, because increased sales in businesses that are losing money can be detrimental if the business does not have a plan to achieve profitability. Companies with quarterly revenue growth of more than 1,000% were excluded as outliers.
| Fastest growing cryptocurrency stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization ($ million) | Revenue Growth (%) | |
| Robinhood Markets Inc. (HOOD) | 8.68 | 7,837.7 | 47.0 |
| Shift4 Payments Inc. (FOUR) | 66.92 | 3,972.5 | 36.1 |
| Block Inc. (square) | 61.56 | 37,237.4 | 26.0 |
Fountain: YGraphics
- Robinhood Markets Inc.: Robinhood operates a brokerage and cash management app and platform. Users can buy and sell stocks, ETFs, options, and cryptocurrencies. Revenue rose nearly in half in the most recent quarter, driven by the increase net interest income.
- Shift4 Payments Inc.: This is a provider of payment processing services. It offers software for transaction processes and money transfers and also allows cryptocurrency transactions. Shift4's revenue grew by more than a third in the past quarter as the company added several new exclusive merchants.
- block inc.: See company description above.
Crypto stocks with the most momentum
Here are the cryptocurrency stocks that had the highest total returns over the last 12 months of the companies we analyzed.
| Crypto stocks with the most momentum | |||
|---|---|---|---|
| Price ($) | Market capitalization ($ million) | 12-month cumulative total return (%) | |
| Applied Digital Corporation (APLD) | 8.87 | 841.8 | 135.3 |
| NVIDIA Corporation (NVDA) | 379.8 | 939,294.5 | 123.9 |
| Riot Control Platforms Inc. (RIOT) | 11.07 | 1,938.1 | 72.2 |
| Russell 1000 Index | N/A | N/A | 3.9 |
| Amplify Transformational Data Exchange ETF (BLOK) | N/A | N/A | -9.3 |
Fountain: YGraphics
- applied digital: It builds and operates data centers to power blockchain infrastructure and cryptocurrency mining in North America. The company's shares rose in mid-May on news that it had signed a $180 million deal to provide artificial intelligence (AI) cloud services to an undisclosed customer.
- NVIDIA: A company that builds and sells graphics processors and related software, some of which is used to mine cryptocurrency. NVIDIA shares rose 25% on May 25 after the company reported record data center revenue in the last quarter, and amid a partnership with Microsoft focusing on AI systems and machine learning.
- riot platforms: A bitcoin mining and digital infrastructure company. The company has bitcoin mining operations in Texas and New York. It also has electrical switch engineering and manufacturing operations in Colorado. a bullish analyst earnings forecast helped drive Riot shares higher in recent weeks.
Risks of cryptocurrency stocks
due to high volatility, the cryptocurrency market carries a certain level of risk and price fluctuations are common. Before you start investing in crypto, you need to determine your risk appetite and implement a solid risk management strategy.
The cryptocurrency market is dominated by speculative trading. Studies of blockchain activity show that Forex trading remains the most frequent use of cryptocurrencies. Cryptocurrency skeptics, including Warren Buffett, Bill Gates, and JPMorgan CEO Jamie Dimon, have warned of a possible cryptocurrency. bubble. Cryptocurrencies are not the only ones to be subject to speculative mania and irrational exuberancebut that is another risk to consider.
As a new technology, some speculative behavior is to be expected, especially as blockchain technology matures. However, new investors should be careful not to fall into fraudulent situations or psychological traps such as pack instinct, fear of missing outor the fool's greatest fallacythat can make the difference between a calculated risk and a detrimental one.
Benefits of cryptocurrency stocks
While cryptocurrencies are risky, they also have the potential to offer outsized returns. When Bitcoin started in 2009, the digital currency essentially had very little value. In the years that followed, it jumped to a fraction of a cent and eventually to tens of thousands of dollars. Gains like these could be among the most significant benefits of investing in cryptocurrency.
Because it is a relatively new industry, cryptocurrency companies can also offer a unique opportunity for investors to enter the blockchain industry. Blockchain has the potential to transform a variety of industries, from accounting and cloud computing to digital advertising and healthcare. Because many cryptocurrency companies are also involved in the blockchain (by providing computing power to support blockchain networks, for example), some of these companies also provide exposure to another industry.
Comments, opinions and analysis expressed on Investopedia are for online informational purposes. read our disclaimer and warranty for more information.
As of the writing of this article, the author does not own any of the above actions.
