Key Points Bitcoin mining stocks and treasury companies often hold significant amounts of the cryptocurrency. This leaves them exposed if the price crashes. 10 stocks we like better than Strategy › The traditional way to invest in Bitcoin (CRYPTO: BTC) is to buy it directly, either through a crypto exchange or a stockbroker that offers it. An increasingly popular alternative is to invest in companies that hold Bitcoin, such as Bitcoin mining companies or Bitcoin treasury companies. Strategy (NASDAQ ...

Core Insights - Major cryptocurrencies like Bitcoin, Ethereum, and Solana have reached new highs due to favorable regulatory policies and increased acceptance by Wall Street [1] - Stocks utilizing cryptocurrency treasury strategies, particularly those leveraging Ethereum and Solana, are outperforming traditional crypto investments [2] Group 1: Crypto Treasury Stocks - "Crypto treasury stocks" are gaining traction, with smaller companies accumulating Ethereum and Solana for yield and price appreciation [2] - MicroStrategy, now Strategy Inc., has accumulated over $27 billion in Bitcoin, viewing it as a long-term reserve asset, resulting in a stock price increase of over 2,000% in five years [3][4] Group 2: BitMine Immersion Technologies Inc. (BMNR) - BMNR has transitioned from Bitcoin mining to an Ethereum treasury strategy, becoming the largest public holder of ETH with 2.4 million ETH valued at approximately $10 billion [5] - The stock has shown signs of stabilization and is trading above its 50 and 200-day simple moving averages, indicating a potential mature uptrend [7] Group 3: MARA Holdings Inc. - MARA Holdings, a Bitcoin miner, has amassed nearly 50,000 Bitcoin and reported $238 million in revenue for Q2 2025, a 64% year-over-year increase [8][10] - The stock has formed a Golden Cross and is breaking out above key moving averages, suggesting potential for a sustainable rally [10] Group 4: SharpLink Gaming Inc. - SharpLink has accumulated over 700,000 ETH valued at over $2.5 billion and is on track to turn a profit in Q3 2025 [11] - Analyst coverage rates the stock as a Buy with a price target nearly triple its current market price [11] Group 5: Cleanspark Inc. - Cleanspark holds over 12,000 Bitcoin valued at about $1.5 billion and reported a record $198 million in revenue for Q2 2025, growing over 60% year-over-year [14] - The stock has confirmed a breakout with bullish technical signals, indicating strong momentum [16] Group 6: Upexi Inc. - Upexi has a market cap of over $360 million and announced a record $447 million in Solana holdings, significantly exceeding its market cap [17][19] - The stock is showing signs of a new uptrend, with potential for significant upside despite inherent risks [19]

Group 1 - Bitcoin has surpassed $113,000 per coin, leading to a rise in cryptocurrency-related stocks [1] - Companies such as Canaan Inc. and Riot Platforms saw their stock prices increase by over 10% [1] - Bit Digital's stock rose by more than 6%, while MARA Holdings and CleanSpark increased by over 3% [1]

Group 1 - The core viewpoint indicates that cryptocurrency-related stocks in the US market experienced a collective decline before the market opened on September 22 [1] - BMNR saw a drop of over 7% [1] - SharpLink Gaming fell nearly 6% [1] Group 2 - MARA and Circle both declined by more than 4% [1] - Bullish decreased by nearly 4% [1] - Coinbase and Strategy dropped by almost 3% [1]

Core Insights - The launch of spot bitcoin ETFs has shifted focus away from crypto equity ETFs, but the latter still present a viable investment case, particularly in crypto mining [1][2] - Crypto mining equities provide an alternative investment route to express a bitcoin view without direct ownership, similar to gold mining equities [2][5] - Investors in mining companies must conduct due diligence on various business aspects, including electricity contracts and management discipline, which offers more concrete metrics compared to direct bitcoin ownership [3][4] Investment Characteristics - Mining stocks can exhibit higher volatility than bitcoin itself and are sensitive to electricity prices and capital requirements [4][6] - Mining revenue is more directly correlated with bitcoin prices, making it a more focused investment compared to broader blockchain themes [5][6] - Public miners are primarily classified within the technology sector, while broader blockchain investments may have exposure to financials and other sectors [6] Intersection with AI - Crypto miners are increasingly leveraging their resources for AI and high-performance computing, creating new revenue streams and enhancing cash flow opportunities [7] ETF Strategies - There are two main crypto mining ETFs: the CoinShares Bitcoin Mining ETF (WGMI) and the Grayscale Bitcoin Miners ETF (MNRS), each with distinct management strategies [8][9] - WGMI is actively managed with a focus on companies deriving significant revenue from bitcoin mining, while MNRS is passively managed and tracks a specific index [9][11] - WGMI has shown strong performance, up 68% year-to-date, while MNRS has a smaller asset base of around $7 million [10][11] Market Dynamics - Other crypto mining ETFs have closed in 2023, indicating a competitive and evolving market landscape [14] - Broader blockchain ETFs also provide significant exposure to mining companies, allowing for diversification while maintaining a focus on miners [15][16] Conclusion - Crypto mining equities offer a measurable way to express a bitcoin view within traditional portfolios, with miner-focused ETFs like WGMI and MNRS providing distinct investment options [17]

Company Performance - Marathon Digital Holdings, Inc. (MARA) experienced a decline of 1.14% in its stock price, closing at $17.33, while the S&P 500 saw a minor loss of 0.1% [1] - Over the past month, shares of Marathon Digital have increased by 15.56%, outperforming the Finance sector's gain of 2.52% and the S&P 500's gain of 2.57% [1] Earnings Projections - The upcoming earnings disclosure for Marathon Digital is projected to show earnings per share (EPS) of -$0.35, which is a 7.89% increase compared to the same quarter last year [2] - Revenue is anticipated to reach $267.05 million, reflecting a significant increase of 102.85% from the same quarter last year [2] Full Year Estimates - For the full year, the Zacks Consensus Estimates predict an EPS of -$0.17 and revenue of $1.02 billion, indicating a change of -109.88% for EPS and +56.01% for revenue compared to the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Marathon Digital are crucial as they reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Marathon Digital as 3 (Hold) [6] Industry Context - Marathon Digital operates within the Financial - Miscellaneous Services industry, which holds a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Group 1: Federal Reserve Actions - The U.S. Federal Reserve lowered interest rates for the first time in nine months, cutting the federal funds rate by 25 basis points to a new target range of 4.00% to 4.25% [1] - The decision was supported by 11 of 12 voting members and comes amid slowing economic growth, weaker job creation, and a slight uptick in unemployment, despite inflation remaining above target [1] Group 2: Cryptocurrency Market Reactions - Mining stocks were mostly weaker, with Iris Energy (IREN) down 0.44%, Bitmine off 0.61%, and Marathon Digital (MARA) losing 1.02% [2][5] - American Bitcoin gained 0.78%, while Riot Platforms (RIOT) was little changed [2][5] - A few lesser-known Bitcoin treasury stocks have shown significant upside momentum, indicating renewed investor interest in cryptocurrencies and related equities [3] Group 3: Individual Stock Performances - Coinbase (COIN) fell 2.20%, Tesla (TSLA) slipped 0.65%, Robinhood (HOOD) edged down 0.37%, and MicroStrategy (MSTR) dropped 0.86% [4] - PayPal (PYPL) gained 1.62%, and Block (SQ) added 0.32% [4] - Galaxy Digital (GLXY) increased by 1.89%, Mercurity Fintech (MFH) rose by 4.51%, and QMMM Holdings surged by 11.36% [6] Group 4: Other Notable Movements - Bullish Global (BLSH) had an upside change of around 5.32%, and Fold Holdings (FLD) saw a 3.90% increase [7] - Real estate firm CIMG gained 2.97%, while other mid-tier names like Empery Digital and Ming Shing Group also experienced price movements [7]

Group 1 - MARA Holdings Inc. (NASDAQ:MARA) experienced a significant share price increase of 7.94% on Tuesday, closing at $17.53, driven by investor interest ahead of a Bitcoin roundtable discussion [1][3] - The roundtable, hosted by Sen. Cynthia Lummis and Rep. Nick Begich, included MARA's CEO Fred Thiel and other key crypto industry executives, focusing on a strategy for the U.S. to acquire 1 million Bitcoins for its reserves over the next five years [2][3] - MARA Holdings reported a production of 705 Bitcoins in August, an increase from 703 in July, and operated at a hash rate of 59.4 EH/s, up from 58.9 EH/s [4] Group 2 - The price of Bitcoin rose by 1.27% to $116,886.20 at the time of reporting, indicating a positive market sentiment [4] - The Bitcoin Act, introduced by Lummis in March, aims to enhance national crypto holdings, building on a previous executive order by President Donald Trump [3]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Marathon Digital Holdings, Inc. (MARA), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Brokerage Recommendations - Marathon Digital currently has an average brokerage recommendation (ABR) of 1.92, indicating a rating between Strong Buy and Buy, based on recommendations from 13 brokerage firms [2]. - Of the 13 recommendations, seven are classified as Strong Buy, accounting for 53.9% of the total recommendations [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies suggest these recommendations often do not effectively guide investors towards stocks with high price appreciation potential [5]. - Brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank vs. ABR - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is a more reliable indicator of near-term price performance compared to ABR, as it is driven by earnings estimate revisions [8][11]. - Unlike ABR, which may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, making it a more effective tool for predicting future stock prices [12]. Current Earnings Estimates for MARA - The Zacks Consensus Estimate for Marathon Digital's current year earnings remains unchanged at -$0.17, suggesting analysts have steady views on the company's earnings prospects [13]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Marathon Digital, indicating a cautious approach despite the Buy-equivalent ABR [14].

Core Insights - Bitcoin mining profitability decreased by 5% in August due to an increase in network hashrate, according to Jefferies [1] - A hypothetical mining fleet of 1 EH/s generated approximately $55,000 per day in revenue in August, down from $58,000 in July and up from $44,000 a year ago [1] Industry Overview - The hashrate, a measure of total computational power for mining and processing transactions, serves as an indicator of competition and mining difficulty in the industry, measured in exahashes per second (EH/s) [2] - U.S.-listed mining companies mined 3,573 bitcoins in August, a slight decrease from 3,598 in July, maintaining a 26% share of the Bitcoin network [2] Company Performance - MARA Holdings (MARA) led the group in bitcoin mining with 705,703 tokens, followed by IREN [3] - MARA holds the largest energized hashrate at 59.4 EH/s, with CleanSpark (CLSK) in second place at 50 EH/s [3]