Here is a list of the best Bitcoin cryptocurrency stocks under $5 that have massive upside. These blockchain related companies could perform well during the next crypto bull market.
Crypto Stocks Under $5
- Core Scientific (NASDAQ: CORZ)
- Bakkt (NASDAQ: BKKT)
- BTCS (NASDAQ: BTCS)
- Hut8 (NASDAQ: HUT)
- BitFarms (NASDAQ: BITF)
- CleanSpark (NASDAQ: CLSK)
- Argo Blockchain (NASDAQ: ARBK)
- Canaan (NASDAQ: CAN)
Here is a breakdown of each company.
1. Core Scientific (CORZ)
Core Scientific is a Bitcoin mining company that currently leads the entire mining industry in total monthly BTC output and deployed miners.
Core Scientific Bitcoin Holdings
Core Scientific holds 1,051 Bitcoin on its balance sheet as of September 30th, 2022.
Core Scientific Mining Fleet and Hash rate
The company controls a massive fleet of 232,000 miners (owned and colocated) at a hash rate of 22 EH/s. 130,000 of these miners are used for self-mining while the other 102,000 are being cohosted for colocation customers.
Core Scientific Risk Factors
Core Scientific has a massive Bitcoin mining fleet but the company routinely sells Bitcoin to fund operations. At the end of Q2 2022, the company held 1,952 BTC on its balance sheet but sold almost 50% of its holdings as of September 30th, 2022.
Selling Bitcoin during bear markets isn’t the best way to increase shareholder value and that’s one of the reasons I’m avoiding CORZ stock for now.
2. Bakkt (BKKT)
Bakkt is an American crypto company that helps its user buy, earn, and spend crypto all in one place.
The company had 681,000 transacting accounts as of Q2 2022 with $315 million in cash on its balance sheet.
Bakkt doesn’t currently hold any Bitcoin or other cryto assets on its balance sheet but is heavily involved in the growth of the crypto through the Bakkt app.
3. BTCS (BTCS)
BTCS is a small-cap blockchain & cryptocurrency staking company that has a substantial cryptocurrency portfolio made up of Bitcoin, Ethereum, Cardano, and other major coins.
The company made history with the announcement of the first ever Bividend, a dividend payable in Bitcoin. BTCS already paid out its first bividend back in March and investors had to option to either receive a normal dividend or Bividend by providing their unique Bitcoin address.
BTCS has ambitious plans to launch a crypto portfolio tracker similar to Cointracker and will continue to earn staking revenue through its massive digital asset portfolio.
4. Hut8 Mining (HUT)
Hut8 Mining is a Canadian Bitcoin mining company.
Hut8 Total Bitcoin Holdings
Hut8 holds 8,388 Bitcoin on its balance sheet as of September 30th, 2022. The company adopts a 100% HODL strategy just like Marathon Digital Holdings and plans to keep all of its mined Bitcoin for the long run.
Hut8 Mining Fleet and Hash rate
Hut8’s hash rate is 3.2 EH/s and the company self mines about 9 BTC per day.
Hut8 Risk Factors
The biggest risk for Hut8 right now is bankruptcy in the current crypto bear market. Q2 2022 losses were $88 million due to lower Bitcoin prices.
Smaller crypto companies are at greater risk of bankruptcy during rough times but Hut8’s massive Bitcoin stash should help the company survive the bear market.
5. BitFarms (BITF)
BitFarms is a Canadian Bitcoin Mining company with operations in 4 countries: Canada, United States, Paraguay and Argentina.
The company holds 2,065 Bitcoin on its balance sheet. The company doesn’t adopt a long term HODL strategy and may sell BTC from time to time as evidenced by a recent sale of 544 BTC in September 2022.
BitFarm’s hash rate is 3.95 EH/s and the company is working on expanding its hash rate in Argentina by the end of Q1 2023.
6. CleanSpark (CLSK)
Cleanspark is an American bitcoin mining company with operations in North America.
The company holds 594 Bitcoin on its balance sheet. CleanSpark doesn’t adopt a long term HODL strategy and may sell BTC from time to time to fund operations.
CleanSpark operates a fleet of 42,000 bitcoin miners at a hash rate of 4.16 EH/s.
7. Argo Blockchain (ARGO)
Argo Blockchain is a UK based Bitcoin mining company with operations based in Texas, USA.
The company holds 512 Bitcoin on its balance sheet (including derivatives to manage risk).
8. Canaan (CAN)
Canaan is a Chinese crypto mining company that sells Bitcoin mining machines.
Why Invest in Cheap Crypto Stocks?
Most of these companies trade at much smaller market caps than the larger, more established crypto companies. That means that you have greater short term risk but higher upside if any of these companies succeed in the long run.
Crypto markets go in cycles and many of these stocks will trade much higher once we enter the next crypto bull market.
Be sure to check out my article on the overall best crypto stocks to buy if you are looking for some bigger companies in the blockchain space.
Read more on the best Bitcoin mining stocks if you are looking for companies that mine BTC only.