Feb 23, 2022 (WallStreetPR via Comtex) -- Crypto is dead. Long live crypto.
This market, perhaps above all others, is the ultimate roller coaster. Crypto investors invented the term "HODL" - or Hold On for Dear Life - for a reason. It isn't easy to stick with a bet that regularly suffers from bipolar disorder.
As Sinatra crooned, "That's life (That's life), That's what all the people say. You're riding high in April, shot down in May. But I know I'm gonna change that tune... When I'm back on top, back on top in June."
Such is life in the crypto space. However, volatility notwithstanding, the net result is that Bitcoin is the best performing major asset in the world over the past 2 years, up over 400% in that time.
For those who missed that move, there are plenty of interesting ways to make up ground. For example, many publicly traded stocks tethered to the crypto markets often outperform Bitcoin during periods of strength.
As we move toward a world dominated by mainstream acceptance of digital currencies, digital goods, tokenization, and alternative forms of finance, investors with no exposure to stocks in the space may find their portfolios left behind.
That puts the current Bitcoin dip in a productive light. With that in mind, we take a look below at some of the most interesting stocks tied to the crypto theme that could form the foundation for an interesting shopping list over coming weeks.
Hut 8 Mining Corp. /zigman2/quotes/208114896/composite HUT +18.92% bills itself as a cryptocurrency mining and blockchain infrastructure company focused solely on mining bitcoin.
The stock provides investors with direct access to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. In other words, HUT is about as a straightforward as it gets in terms of being a proxy for crypto exposure.
Hut 8 Mining Corp. /zigman2/quotes/208114896/composite HUT +18.92% recently announced the appointment of Josh Rayner to the new role of Vice President, Sales, effective February 21, 2022. Mr. Rayner joins Hut 8 to lead sales with a focus on the Company's recently acquired data center and managed services business under the direction of CEO Jaime Leverton.
"We are excited to welcome Josh to our team to help us strengthen our existing position and expand our new customer base," said Jaime Leverton, Chief Executive Officer of Hut 8. "As both a leader with diverse experience in the data center realm and a passionate champion of digital assets, Josh is well positioned to support our continued momentum and will be an asset to our team."
Even in light of this news, HUT has had a rough past week of trading action, with shares sinking something like -17% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
Hut 8 Mining Corp. /zigman2/quotes/208114896/composite HUT +18.92% managed to rope in revenues totaling $50.3M in overall sales during the company's most recently reported quarterly financial data — a figure that represents a rate of top line growth of 774.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($375.5M against $21.9M).
ISW Holdings could be the most interesting name on this list mainly because it has very real and growing operations with top-tier partnerships, but it likely still trades at a steep discount to other crypto players because it's still on the OTC market. Given the scale of the company's operations, it may not be long before it moves up to a listing on a major exchange, which could unlock a lot of value for its shareholders.
The stock is also outperforming its peers over the past three months - a period when most of the stocks in the crypto space have been crushed as BTC pulls back. During that period, ISWH is actually one of only a very select number in the space to avoid big losses. That relative strength may be an important sign of things to come.