Famous Executive Identifies 5 Crypto Stocks: They Will Rise Monstrous!

VanEck’s director of crypto research says these 5 under-the-radar crypto stocks could witness a massive spike in 2022. It’s been an extraordinary year for cryptocurrencies, but a tough one for the stocks tied to them. VanEck’s crypto-focused ETF has underperformed since its launch in April but could come back in 2022. The firm’s digital asset research director shared five crypto stocks to watch in the new year. Details cryptocoin.com‘in.

5 crypto stocks under the spotlight

When risky assets fall, is it better to go out or double up? This has been an age-old investment dilemma. A rapid decline for cryptocurrencies and their associated stocks brings this choice to the fore. Bitcoin (BTC) has lost 31% since it hit an all-time high of around $69,000 in early November, as did Ethereum (ETH), which fell nearly 23% from its peak on Nov. But even these steep declines pale in comparison to the 40% loss the VanEck Digital Transformation ETF (DAPP) has suffered over the past five weeks. Crypto stocks traded on the exchange, including crypto exchange giant Coinbase (COIN) and Riot Blockchain (RIOT), fell 32% and 48%, respectively, from their recent highs.

JP Lee, VanEck’s ETF product manager, is bullish for the fund, despite recent struggles. According to him, it provides diversity for crypto skeptics and fanatics alike. Many investors are increasingly interested in cryptocurrencies, but are unable or unwilling to directly own digital tokens. Most brokerages do not currently allow clients to trade crypto, and transferring one’s money to another platform can be a headache. The DAPP allows believers to expand their portfolios and potentially reduce their risk profile, while allowing those interested in crypto to gain exposure to the burgeoning asset class. Lee said that owning cryptos and crypto stocks should not be mutually exclusive.

“We see them as different investment opportunities. Sure, they probably fit together in some kind of strategy, but they’re not the same thing. So this is a way to participate without buying Bitcoin,” he says. The ETF product manager admits that the fund was launched at the worst possible time: the day before Bitcoin hit its previous peak of just over $63,000. Lee said the enthusiasm led to overextended valuations, which only hurt the ETF as the cryptocurrency’s price plummeted over the next six months.

“It’s definitely been a negative first year for the ETF in terms of performance. But where we are right now, I think valuations on a price-to-earnings or a price-to-sales ratio are very challenging. “Those companies, even though their stock prices haven’t gone too well, they’re still growing like crazy, they still have very strong user bases,” he says. The continued crypto adoption among investors, both large and small, gives Lee confidence that 2022 could be the comeback year for the DAPP ETF.

Five stocks to watch in 2022

Matthew Sigel, VanEck’s director of digital asset research, has listed five crypto-focused stocks that are under the radar to watch as we head into 2022.

1. Marathon Digital Holdings (MARA). Market cap: $3.6 billion. Capitalized with over 1% of the global hashrate (market share), an aggressive expansion strategy, and more than $1 billion in available liquidity, Marathon is the largest publicly traded Bitcoin miner in North America. Bitcoin miners have depreciated significantly and MARA is currently trading with 8x less consensus 2022 earnings.

2. MicroStrategy (MSTR). Market cap: $5.9 billion. In the absence of a physical Bitcoin ETF, Mikrostrategy may be the closest alternative available: A public company whose stated purpose is to borrow dollars and buy as many Bitcoins as possible. Meanwhile, the core business intelligence continues to execute with the software division. Strong subscription revenue growth keeps debt markets open to additional purchases.”

3. Voyager Digital (VYGVF) Market cap: $2.1 billion. Voyager Digital is a digital asset focused agency broker in the early days of building a crypto-based one-stop financial services platform. Managed by an experienced management team with a track record of success in promising industries, the platform has attracted 2.7 million verified users in 49 US states. Expansion to NY and Canada and rollout of Voyager’s crypto-based debit card will begin in 2022.

4. Bakkt Holdings (BKKT) Market cap: $2.4 billion. Bakkt focuses on providing customers with the ability to use/convert/send/spend a wide variety of digital assets, from cryptocurrencies to loyalty points, in-game assets and NFTs. It is uniquely positioned with institutions for both crypto custody and trading. The October announcement that Mastercard will use Bakkt’s platform confirms Bakkt’s business model.

5. Stronghold Digital (SDIG) Market cap: $707 million. One of several ‘ESG’ Bitcoin miners to be introduced to the public for the first time in recent months, Stronghold collects coal waste from more than 800 abandoned piles across Pennsylvania to be incinerated in the company’s Bitcoin mining efforts. Thanks to Pennsylvania tax credits and Stronghold’s redesign of its existing power generation facilities, the company has the lowest operating costs among public miners.”

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