These stocks might bring multi-bagger returns in the short term as Bitcoin stabilizes.
1. Bitfarms ($BITF)
I would hold a crypto penny stock in the portfolio for potential multi-bagger returns if Bitcoin skyrockets in 2024, and Bitfarms stock looks attractive at current levels of $1.34.
Being a small company, Bitfarms has robust fundamentals. As of July, Bitfarms reported debt obligations of $13.7 million. The company has already deleveraged significantly and plans to be debt-free by February 2024. Further, with a liquidity buffer of $48 million, there is ample flexibility for aggressive growth.
It’s also worth noting that Bitfarms has a mining capacity of 5.3EH/s as of July. On a year-on-year basis, capacity expansion has been robust and I expect that to be sustained. Further, with the company having an attractive breakeven cost, I hope for robust cash flows once Bitcoin surges.
Waiting for the SARPivotPoints to reverse, and then BITF is off on a green reversal pattern.
I believe 5x or 10x returns will likely happen in the next 18 months if Bitcoin trades at new highs.
2. Riot Platforms ($RIOT)
After a sharp correction of 40% in the last month, the stock looks attractive for fresh exposure.
One reason to like Riot is a strong balance sheet. As of Q2 2023, the company reported zero debt and $510 million in cash and digital assets. This provides Riot with high financial flexibility for aggressive expansion.
It’s worth noting that the company ended Q2 2023 with a mining capacity of 10.7EH/s. On a year-on-year basis, capacity increased by 143%.
Riot shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.06%, which is quite impressive.
The company is clearly positioned for robust revenue growth and cash flow upside. The massive growth in capacity will more than offset the concerns related to difficulty in Bitcoin mining after the halving event.
Cantor Fitzgerald, and Josh Siegler analysts reiterate Riot Platforms (RIOT) with an Overweight and maintain a $23 price target.
That is a 100% move from here.
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