We recently compiled a list of the 7 Best Bitcoin Stocks To Buy Right Now. In this article, we are going to take a look at where TeraWulf Inc. (NASDAQ:WULF) stands against the other bitcoin stocks.
Future of Bitcoin: What Can We Expect By 2024’s End?
Skyridge’s CEO Anthony Scaramucci expects Bitcoin to reach $100,000 by the end of 2024. In an interview with CNBC, he mentioned a number of factors working in this situation for instance the German government selling bitcoin, the Mt. Gox bankruptcy, and the April reward halving which has resulted in selling pressure in the ETFs. Let’s take a look at these factors.
In June, the German government started to sell bitcoin from a wallet operated by the Federal Criminal Police Office. The crypto reserves are also being sent by the government to exchanges such as Coinbase, Bitstamp, and Kraken. As this selling continued through July, Bitcoin’s price dropped dramatically and hit its lowest level since February 2024.
Another important event is the Japanese bitcoin exchange Mt. Gox which collapsed after being hacked 10 years ago, unloading $9 billion of coins. Mt. Gox used to be the biggest spot Bitcoin exchange across the globe. While it has started to repay in bitcoin and in bitcoin cash to its creditors through designated crypto exchanges., the market will be impacted. Bitcoin which was trading at $600 is worth more than $60,000 as of now. Those who are to be reimbursed in the cryptocurrency itself will witness their coin values rising by 10,000% over the last 10 years. Analysts expect this move to result in heavy but short-lived selling in bitcoin since Mt. Gox creditors are likely to sell some of their bitcoin to benefit from seismic gains. However, it is being believed that there is enough liquidity to absorb these sales over the next few months.
Additionally, FTX is going to release roughly $16 billion of cash to investors who had their accounts at the exchange. In the opinion of Scaramucci, 40 to 50% of that will be going back to the asset class as these people are early adopters in the digital asset space, known to be typically more loyal.
Simultaneously, Bitcoin experienced a reward halving in April. The halving event is pre-planned and takes place once every four years to slow the pace at which new coins are created. Through this reduced supply of the coin, the concept of Bitcoin as digital gold remains maintained. The event typically makes miners sell some of their bitcoin to keep their revenues up thereby putting temporary pressure on Bitcoin.
Our Methodology:
In order to compile a list of the 7 best Bitcoin stocks to buy right now, we sifted through online rankings and ETFs to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 7 stocks from our list which had the highest number of hedge fund holders. The 7 best Bitcoin stocks to buy right now have been arranged in ascending order of their hedge fund holders as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
20 Most Competitive Economies In The World
TeraWulf Inc. (NASDAQ:WULF)
Number of Hedge Fund Holders: 37
TeraWulf Inc. (NASDAQ:WULF) develops, owns, and operates fully integrated Bitcoin mining facilities across the United States. Currently, the firm operates two bitcoin mining facilities including the Nautilus Cryptomine Facility in Pennsylvania which is directly powered by nuclear energy, and the Lake Mariner Facility in New York which utilizes more than 91% zero-carbon energy sourced from the grid.
TeraWulf’s extensive 600 megawatts of owned and scalable infrastructure serve as its competitive edge. TeraWulf Inc. (NASDAQ:WULF) is one of the most efficient public Bitcoin miners and digital infrastructure owners, with a fleet efficiency of 23.7 joules per terrahash. TeraWulf has solidified its existing market position by utilizing its successful bitcoin mining as the foundation for strategically moving into alternative compute hosting. Financed by an industry-leading OEM, the Bitcoin minor committed to purchasing a 128 GPU cluster from NVIDIA in the recent quarter. The firm is also carrying out the construction of a 2 MW AI/HPC digital infrastructure proof-of-concept building which has been designed to house high-density GPUs. The project is expected to be completed in early September.
The most recent August 2024 production and operations highlights show that TeraWulf’s installed and operational self-mining capacity witnessed a 100% year-over-year increase by hitting approximately 10.0 exahashes per second. The firm achieved an average production rate of approximately 5.9 bitcoin per day by mining 184 bitcoin during the month. The operational infrastructure capacity as of August comprises 50 MW at the Nautilus facility and 195 MW at the Lake Mariner facility.
The above strategic positioning and large-scale facilities enable TeraWulf to cater to the rising demand of the data center market. The firm’s focus on scalable zero-carbon energy infrastructure is a differentiating factor. The stock was held by 37 hedge funds at the end of Q2 which ranks it among the top cryptocurrency stocks to buy according to hedge funds.
Overall WULF ranks 4th on our list of the best bitcoin stocks to buy. While we acknowledge the potential of WULF as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than WULF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.