We recently published a list of 8 Best Crypto and Blockchain Stocks to Buy According to Analysts. In this article we will look at where Iris Energy Ltd. (NASDAQ:IREN) stacks up against other best crypto and blockchain stocks to buy according to analysts.
The global blockchain technology market is expected to witness significant growth in the coming years. According to Fortune Business Insights, the global blockchain technology market was valued at $17.5 billion in 2023 and is expected to witness a compound annual growth rate (CAGR) of 59.9% between 2023 and 2030. This growth is expected to bring the market at a valuation of $469.49 billion by the end of the forecast period.
The growing adoption of blockchain technology in the financial and retail sectors is one of the main drivers of this growth trajectory, with another factor being the growing acceptance of cryptocurrencies across the world. Additional drivers such as Blockchain as a Service (BaaS) further support the sector. BaaS services allow small and medium-sized businesses (SMEs) to explore blockchain applications without introducing the complexity of in-house development.
Cryptocurrencies have played a central role in blockchain industry trends, encouraging the development of blockchain infrastructure and driving innovation in privacy and scalability. Various blockchain applications are emerging in the market, including supply chain management, trade finance, cross-border payments, lot lineage/provenance, and identity management.
Blockchain technology allows, among other things, the existence of cryptocurrencies. Like a digital ledger, it records and confirms cryptocurrency transactions. Behind the most popular cryptocurrency, Bitcoin, there is a blockchain called the Bitcoin blockchain. Bitcoin has been steadily hitting new record highs after the election. Other cryptocurrencies like Dogecoin, the favorite coin of staunch Trump supporter Elon Musk, are also posting gains, as reported by the BBC.
Analysts say much of these recent gains are due to the anticipated crypto-friendly nature of the incoming Trump administration, which could result in greater regulatory clarity, but also some wiggle room. This may include a potential national reserve or strategic stockpile of bitcoins, as well as industry-friendly regulations.
On November 11, MacKenzie Sigalos appeared on CNBC’s “Squawk Box” to talk about Bitcoin’s post-election rally. She said most Bitcoin miners are seeing double-digit percentage gains, painting a positive picture for Bitcoin and blockchain stocks. The broader crypto market is also seeing outsized gains.
Sigalos recalled that Donald Trump promised to mine all future Bitcoins in the United States, pledging to quickly build the country’s energy production and transmission infrastructure, which she said is an excellent thing for energy-hungry miners. This is one of multiple commitments the president made to the crypto industry on the campaign trail, along with the firing of SEC Chairman Gary Gensler and the launch of a national stock of cryptography. Overall, the administration is expected to be pro-crypto, painting a favorable picture for investors.
Our methodology
We sifted through online rankings and ETFs to list the top crypto and blockchain stocks. We then selected 8 stocks with the highest upside potentials that were also the most popular among elite hedge funds. Stocks are ranked in ascending order of their analysts’ upside potential as of November 23, 2024. We’ve also included the number of hedge fund holders for each company as of the third quarter of fiscal 2024, from the company’s database. InsiderMonkey.
Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Iris Energy Ltd. Is (IREN) the best crypto and blockchain stock to buy according to analysts?
A table full of technology, with Bitcoin mining rigs and a laptop displaying a financial graph.
Analyst increase: 39.28%
Number of hedge fund holders: 28
Iris Energy Ltd. (NASDAQ: IREN) is a leading name in the crypto and blockchain industry. It owns and operates data centers purpose-built for high-performance computing to support application-specific integrated circuits (ASICs) for Bitcoin mining. These data centers are powered by 100% renewable energy. The company operates data center infrastructure for Bitcoin mining. Its facilities are optimized for Bitcoin mining, AI cloud services and other energy-dense computing.
The company has a strong portfolio of 26 MW of operating data centers, which will expand to 510 MW in 2024. Its October FY2024 monthly revenue increased 32% to 28 .2 million dollars. This growth is due to an increase in the company’s operational hashrate to 21 exahashes per second and rising Bitcoin prices.
Iris Energy Ltd. (NASDAQ: IREN) offers AI cloud services that provision an additional 1,080 NVIDIA H200 GPUs, more than double its existing AI capacity. This is expected to generate approximately $32 million in annualized hardware profits by the end of December 2024.
Since the company uses 100% renewable energy for its operations, it aligns with global trends promoting greener energy. It holds a strategic advantage as a leader in sustainable practices within the industry. Iris Energy Ltd. (NASDAQ:IREN) ranks fifth on our list of the 8 best crypto and blockchain stocks to buy according to analysts.
Overall, IREN ranks 5th on our list of the best crypto and blockchain stocks to buy according to analysts. While we recognize the potential of blockchain stocks, our conviction lies in the belief that AI stocks hold more promise in terms of higher returns and in a shorter time frame. If you’re looking for an IA stock that’s more promising than IREN but is trading at less than 5x earnings, check out our report on Cheapest AI stock.
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Disclosure: None. This article was originally published on Initiated monkey.
