As Neil Peart from Rush eloquently stated, “Changes aren’t permanent, but change is” – a perspective that is particularly relevant in today’s rapidly evolving digital economy. The inherent cycles of business are magnified by the rapidity of digital transactions, and emerging technologies keep adding new assets to investors’ attention.
Few areas illustrate this change better than cryptocurrency, where innovation and increasing mainstream acceptance are transforming the financial landscape. From the vantage point of KBW, esteemed analyst Bill Papanastasiou indicates a potential shift towards broader adoption of digital assets.
“We believe we are at a crucial point in the progression of digital assets (especially Bitcoin). Support for crypto from the pro-crypto U.S. government and securities regulators is strong, and they are working collaboratively to establish a comprehensive digital asset framework, expected to boost adoption, enhance institutional participation, and integrate this asset class with traditional financial markets,” remarked Papanastasiou.
In light of these developments, Wall Street analysts have pinpointed two Bitcoin-oriented stocks for investors eager to take advantage of the advancing crypto landscape. These firms are staunch advocates of Bitcoin, an asset that can trigger a digital gold rush when the market heats up.
Let’s explore the TipRanks database to uncover what analysts have to say about these crypto-focused stocks and why they may represent attractive investment opportunities.
CleanSpark(CLSK)
First on our list is CleanSpark, a bitcoin mining company committed to fostering a clean, sustainable future by utilizing low-carbon renewable energy sources. Based in Utah and Nevada, CleanSpark has mining operations in Wyoming, Tennessee, Mississippi, Georgia, and New York. The company prides itself on operating both profitably in bitcoin mining and sustainably in energy usage, relying on power generated from wind, solar, nuclear, and hydro sources.
CleanSpark’s extensive operations are reflected in the company’s key statistics. As of January 31, the firm had deployed a fleet of 217,272 miners with a combined hashrate of 40.1 EH/s. In January, CleanSpark produced 626 bitcoins and reported total holdings of 10,556 bitcoins, marking the first month its bitcoin reserves surpassed the 10,000 mark. The company sold 22.47 bitcoins during that month to help sustain its operations.
Earlier this month, CleanSpark announced its financial results for fiscal 1Q25, which concluded on December 31. The company reported revenues of $162.3 million for the quarter, reflecting a remarkable year-over-year increase of 119% and exceeding expectations by $5.9 million. CleanSpark’s earnings per share (EPS) of 85 cents was 35 cents higher than anticipated. By the end of the quarter, the company’s total current assets—including bitcoin and cash—amounted to $1.2 billion, with $276.6 million in cash; the majority of its current assets are held in bitcoin.
This bitcoin miner has attracted the attention of Needham analyst John Todaro, who ranks among the top 1% of analysts on TipRanks. He is impressed by CleanSpark’s ability to expand its bitcoin mining hashrate and its strong financial position; he states, “Our investment thesis hinges on: 1) operational leverage as the company boosts hash rate (25% growth) while costs increase at a more modest rate (5-7%); CLSK currently boasts the lowest G&A expenses per EH within our coverage. 2) A compelling valuation, as CLSK is the most undervalued stock in our universe yet ranks among the most efficient miners with a strong management team. Lastly, 3) the company’s robust balance sheet of over 10,000 bitcoins offers significant financial flexibility (we foresee minimal equity dilution in 2025). We also anticipate CLSK could start generating an attractive yield of 5%+ per annum on its bitcoin stack.”
Todaro has assigned a Buy rating for CLSK shares, with a price target of $20, indicating an impressive one-year upside potential of 90.5%. (To view Todaro’s track record, click here)
Overall, the stock has garnered a Strong Buy consensus rating from Wall Street analysts, backed by 9 recent reviews, which include 8 Buys and 1 Hold. The current trading price of the shares is $10.50, while the average target price of $22.57 indicates an even more optimistic outlook, suggesting a 115% potential gain in the upcoming year. (See CLSK stock forecast)
Strategy, Inc.(MSTR)
Next is Strategy, a company that recently rebranded; you may recognize it from its previous, longer name, MicroStrategy. Now, operating as Strategy, the firm has incorporated a stylized ‘B’ in its logo, highlighting its focus as a bitcoin treasury. The stock ticker remains unchanged, and with a market cap exceeding $87 billion, it stands as the largest corporate bitcoin treasury.
Strategy continues to operate its core business, providing business intelligence and Artificial Intelligence (AI) software solutions, offering clients high-end, AI-driven, cloud-based data capabilities at any enterprise scale. With over 35 years in data analytics, the company has a strong foundation.
Recently, the stock has seen remarkable success, soaring 379% over the past year, which can be attributed primarily to its bitcoin strategy rather than its software services.
Under the leadership of Michael Saylor, the company has adopted a strategy focused on acquiring as much Bitcoin as possible, bolstering its primary goal of establishing a substantial bitcoin reserve. Strategy currently possesses over 478,000 bitcoins, providing value and potential returns for its investors.
Despite experiencing a challenging quarter, Strategy’s revenue and earnings have shown volatility. In the most recent quarter, 4Q24, the company reported revenues of $120.7 million, a decline of 3.1% year-over-year, falling short of expectations by $2.03 million. The net loss was significant, stemming from a one-time bitcoin impairment exceeding $1 billion, resulting in a non-GAAP EPS of negative $3.20 for the quarter.
Still, Bill Papanastasiou from KBW sees substantial potential in Strategy, particularly regarding its expanding bitcoin treasury role. He notes, “We consider MSTR to be an appealing option for investors seeking leveraged Bitcoin exposure, enhanced by strategic bitcoin acquisitions supported by sought-after securities issuances and a valuation that surpasses net asset value… Our perspective is that a significant value release is likely when new applications are developed on top of the Bitcoin protocol, recognized as the most secure, decentralized, and valuable public network. In the future, MSTR could emerge as a consolidator and strategic leader in developing the ecosystem, enhancing the utility and applications of Bitcoin, including supporting initiatives that rival other smart contract platforms.”
Papanastasiou assigns an Outperform (i.e., Buy) rating to MSTR shares, with a target price of $560, indicating a 66% potential gain over the next year. (To check Papanastasiou’s track record, click here)
There has been a consensus of 11 positive analyst reviews for this stock, yielding an unequivocal Strong Buy rating. The stock is trading at $337.73, and its average price target of $548.91 suggests a promising 62.5% upside potential in the coming year. (See MSTR stock forecast)
For further insights into stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a resource that compiles all of TipRanks’ equity analyses.
Disclaimer: The views expressed in this article are solely those of the analysts highlighted. This content is meant for informational purposes only. Conducting thorough analysis prior to any investment decision is crucial.
