Crypto
20 Best Cryptocurrency Stocks to Buy According to Hedge Funds
In this article, we will take a look at the recent news from the crypto industry while discussing the 20 cryptocurrency stocks to buy according to hedge funds.
A Review of the Crypto World: Latest Updates
Crypto has emerged as a major political issue in the US with the campaigns for election going on. Head of Firmwide research Galaxy Digital Alex Thorn called August a rough and seasonally bad week for Bitcoin. He mentioned how eight out of the eleven prior Augusts witnessed the major coin trading down. However, political events have also played a role in the crypto landscape.
In Thorn’s opinion, most people view Trump’s victory as bullish for the crypto market. Trump who is now running for President brought the hopes of the crypto world higher by promising to deliver a plan to make the United States the ‘crypto capital of the planet’. Crypto became an even hotter topic as Kamala Haris simultaneously supported policies for the expansion of the industry. In the opinion of Thorn, most people view Trump’s victory as bullish for the crypto market. He predicts crypto will run quite higher if Trump ends up winning the election based on an anticipated easing of the regulations. On the other hand, he expects the victory of Harris to be more neutral even for the industry since those advising her belong to the Biden administration on crypto policy.
Looking forward to September which is a seasonally weak month for crypto too, the next months including October, November, and December are crypto’s most bullish months based on the seasonality factor. Regardless of the highly awaited Fed interest rate cuts just ahead of us, the crypto market investors still remain concerned as JPMorgan’s Head of Global and European Equity Strategy dismissed the potential of a crypto bull market. While September has been a historically worst month for US stocks, the upcoming rate cut might be an outlier in history.
In an interview with CNBC, Anthony Pompliano, Professional Capital Management CEO, talked about the recent price moves in Bitcoin. The German government offloading Bitcoin through as many exchanges and the Bitcoin exchange Mt. Gox unloading coins onto the market are two important events defining this supply. Pompliano refers to Bitcoin as really illiquid with many Bitcoin holders having a long-term view of it. At the start of 2024, the Bitcoin amount that had not moved in more than a year was over 70%. Some of it started to get distributed as prices rose, as expected in a bull market. Although Pompliano expects this percentage to drop to 50% to 55% but still at least half of the Bitcoin would still be in the hands of people who have an over 10-year time horizon. Thus, the question revolves around whether these hands are strong enough to outlast the aforementioned two events. Pompliano finally states time as the only catalyst for Bitcoin rather than a pro-crypto candidate in the upcoming US elections. While the summer season is a bit slow, prices typically go back up in September and beyond.
With that, let’s look at the 20 best cryptocurrency stocks to buy now.
Our Methodology:
In order to compile a list of the 20 best cryptocurrency stocks to buy according to hedge funds, we sifted through ETFs and online rankings to compile a preliminary list of 40 companies involved in the crypto space. Moving on, we shortlisted the top 20 stocks from our list which had the highest number of hedge fund holders. The 20 best cryptocurrency stocks to buy according to hedge funds have been arranged in ascending order of the number of hedge fund holders they have, 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 Best Cryptocurrency Stocks to Buy According to Hedge Funds
20. Hut 8 Mining Corp (NASDAQ:HUT)
Number of Hedge Fund Holders: 13
Hut 8 Mining Corp (NASDAQ:HUT) is a Bitcoin mining company headquartered in Miami, Florida. The company has self-mining, hosting, managed services, and traditional data center operations across North America. It has a portfolio comprising 20 sites including 10 Bitcoin mining, hosting, and managed services sites in Alberta, New York, and Texas, 4 power generation assets in Ontario, 5 high-performance computing data centers in British Columbia and Ontario, and one newly announced site in the Texas Panhandle.
Hut 8 Mining Corp (NASDAQ:HUT) serves as one of North America’s largest Bitcoin miners and a leading vertically integrated operator of large-scale energy infrastructure. Its unique business model revolves around profitable digital asset mining, high-performance computing, and yield programs that complement its self-mined Bitcoin reserves’ value. The firm has years of experience mining digital assets with the most efficient mining servers which makes its operations one of the strongest in the mining industry. It has a proven track record of successfully navigating bull and bear Bitcoin market cycles. Despite the network halving during the second quarter, the firm’s gross margins in the Digital Assets Mining segment increased to 46% year-over-year.
An expanding footprint is core to the firm’s differentiated energy strategy. While the firm announced a new site in the Texas Panhandle, it is discussing a large-scale commercial partnership for the site which can power up to 205 megawatts of NVIDIA Blackwell GPUs. Emphasizing this business strategy, here is what the CEO Asher Genoot said during the Q1 2024 results conference call:
“We believe our strategy will position us for market leadership—first in Bitcoin mining then in the broader energy infrastructure sector. And with our commitment to disciplined capital allocation, focus on non-dilutive sources of funding, and exceptional team and board, we are more confident than ever that we are building a business that endures for generations and delivers lasting shareholder value.”
The firm’s strategy of building a portfolio that drives long-term market leadership, diversified business lines, and a strong and liquid balance sheet makes it attractive. As of Q2 2024, Hut 8 Mining Corp (NASDAQ:HUT) was held by 13 hedge funds thereby ranking among the 20 best cryptocurrency stocks to buy according to hedge funds.
19. Cipher Mining Inc. (NASDAQ:CIFR)
Number of Hedge Fund Holders: 15
Cipher Mining Inc. (NASDAQ:CIFR) is an industrial-scale Bitcoin mining company that dedicates itself to expanding and strengthening the Bitcoin network’s critical infrastructure in the United States. Cipher focuses on the development and operation of bitcoin mining data centers in the country. The US-based Bitcoin mining company was incorporated in 2020 and aims to be the market leader in Bitcoin mining growth and innovation.
Cipher is in an attractive industry position to maximize opportunities in both Bitcoin mining and HPC infrastructure. It is currently developing HPC infrastructure to be complementary to its Bitcoin mining business. The firm strategically expanded into the High-Performance Computing (HPC) business and has the potential to become a market-leading HPC infrastructure provider by securing 4 new North American sites with up to 1.7 GW of capacity while all sites have adequate access to consistent power, land, and fiber necessary to accommodate HPC. With experienced industry experts from Google, Vantage, and Meta on the team and significant early interest from a broad set of potential investors and financiers, Cipher is poised to grow.
As indicated by the CEO of Cipher, the firm currently operates at 8.7 exahashes per second of self-mining hashrate and is on target to achieve 13.5 exahashes per second by the year’s end and 35.0 exahashes per second by 2025’s end, almost 4 times than the current. Amidst ambitious plans for expansion and consistent growth in Bitcoin mining capacity and efficiency, Cipher Mining Inc. (NASDAQ:CIFR) is aiming for the right balance between the two business lines. The stock was held by 15 hedge funds at the close of Q2 2024 and is one of the best cryptocurrency stocks to buy according to hedge funds.
18. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 16
Marathon Digital Holdings, Inc. (NASDAQ:MARA) operates as a global leader in digital asset compute. The company mines digital assets with a focus on the Bitcoin ecosystem in the United States. Marathon leverages digital asset compute to support the energy transformation by the conversion of clean, stranded, or underutilized energy into economic value.
Marathon is one of the largest and most liquid miners which continues to efficiently scale and expand its operations thereby setting the pace for the Bitcoin mining industry. The firm has a diversified portfolio of Bitcoin mining operations. All of this has translated into strong financial results. From Q4 2022 to Q4 2023, the company witnessed its hashrate, BTC production, efficiency, and market share rise. For the second quarter of 2024, the BTC production fell as a result of the increased global hash rate, the April halving event, and unexpected third-party equipment failures and transmission line maintenance. However, the company recorded its energized hash rate increasing 78% to 31.5 exahashes per second, up from 17.7 exahashes per second in Q2 2023. Revenue increased by 78% year-over-year.
To better align its internal structure with the pursuit of growth opportunities, the company was organized into three strategic business teams including Utility Scale Mining, Energy Harvesting, and Technology. It also diversified its portfolio of digital asset compute with the launch of Kaspa mining operations.
With an all-time high installed current hash rate of 31.5 exahashes per second, the strategic move towards a streamlined organization with three specialized business teams, Marathon Digital Holdings, Inc. (NASDAQ:MARA) qualifies as one of the best cryptocurrency stocks to buy which was held by 16 hedge funds and Citadel Investment Group was the top shareholder, as of Q2 2024.
17. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 16
Bitfarms Ltd. (NASDAQ:BITF) is a global Bitcoin self-mining company which was founded in 2017. The company runs vertically integrated mining operations with onsite technical repair, proprietary data analytics, and company-owned electrical engineering and installation services. The Bitcoin miner has a diversified production platform comprising 8 industrial-scale facilities in Canada, 2 in the United States, 1 in Argentina, and 3 in Paraguay. The firm’s data centers are powered by more than 75% renewable power.
Currently, Bitfarms serves as the only publicly traded crypto mining company audited by a Big Four accounting firm. The firm manages one of the largest internationally diversified portfolios of energy contracts in the Bitcoin data center business. It recently added 220 MW of capacity in Paraguay and Pennsylvania while it energized its 70 MW site in Paso Pe, the company’s largest site to date. Simultaneously, it stepped into the most attractive energy market in the US through its new site in Sharon while unlocking new opportunities beyond Bitcoin mining, such as HPC/AI. For the second quarter, Bitfarms had a hashrate of 11.1 exahashes per second, up from 6.5 exahashes per second in the first quarter. This implies that Bitfarms is implementing a robust growth strategy with a focus on US expansion and diversification from Bitcoin mining.
At the end of August, Bitfarms Ltd. (NASDAQ:BITF) revealed its plans to acquire Stronghold Digital Mining, Inc., a vertically integrated crypto asset mining company. This transformative acquisition is anticipated to potentially raise Bitfarm’s energy portfolio to over 950 MW by the end of 2025. The transaction is expected to close in the first quarter of 2025.
Based on the aforementioned plans, the firm is well set to reach over 35 exahashes per second in 2025 which will be a 67% growth from 21 exahashes per second, the year-end target for 2024. With the appointment of Ben Gagnon as the Chief Executive Officer who has a prior 9-year full-time experience in the mining industry, Bitframs is positioned for accelerated growth through 2024. The firm’s impressive energy portfolio and strategic approach to growth rank it among some of the best crypto stocks to buy. As of Q2 2024, the stock was held by 16 hedge funds while Millennium Management was the most dominant shareholder.
Key Takeaways
- Dragonfly’s Rob Hadick says stablecoins could grow 10x as payments adoption accelerates.
- Tether and Circle are shifting from reserve yield toward payments and financial rails.
- Hadick expects USDT and USDC to face rising competition from banks and fintechs.
Stablecoins and the Fall of Legacy Payments
For years, the stablecoin market has been viewed through the lens of issuance. The most visible winners have been the companies minting the assets, holding reserves, and benefiting from interest income. But Rob Hadick, General Partner at Dragonfly, believes that view is too narrow for where the market is heading.
In Hadick’s view, stablecoins do not simply improve the existing payment system. They compress much of it.
“ Stablecoins collapse the legacy payment infrastructure and reduce the dependency on intermediaries,” Hadick said. “When you’re a stablecoin native, everything is just a book transfer.”
That shift changes where value accrues. In the traditional payments system, value was spread across banks, card networks, processors, settlement layers, compliance vendors, and middleware providers. Stablecoins make many of those roles less necessary, or at least less defensible.
The result, Hadick argues, is an inversion of the 2010s fintech playbook. During that era, major companies were built by creating connections between software startups and legacy banking payment rails. In the stablecoin era, the opportunity is not simply connecting to those legacy banking payment rails. It is replacing them.
That means in the future, the most valuable businesses may sit at the edges of the system: the companies that own customer distribution, merchant relationships, compliance workflows, banking access, and regulatory infrastructure.
From Reserve Yield to Payments
Within the stablecoin vertical of crypto, stablecoin issuers have been the clearest winners so far. Tether and Circle built large networks, accumulated liquidity, and benefited from high interest rates on reserves, which they haven’t had to pass on to users. That model has proven powerful, especially while rates remain elevated.
But Hadick does not expect reserve yield alone to define the next stage of the market. “Going forward, both have started investing heavily in moving from asset management models to payment models,” he said.
That transition is already visible. Hadick pointed to Tether’s investments in companies and ecosystems such as Whop, Transfi, Rumble, and Plasma, while Circle has launched the Circle Payments Network and Arc. These moves suggest that the largest issuers understand the limits of being purely reserve-backed asset managers. In other words, issuance was the first business model, but it will not be the final one.
The Full Stack Starts to Collapse
One of the largest open questions is what the winning stablecoin companies will actually look like. Will they resemble banks, software platforms, payment networks, protocols, or something else entirely?
Hadick answers that today’s market contains all of the above. But he believes stablecoins create room for a new kind of company that blends several financial functions into one.
Imagine a company issuing its own stablecoin, serving users directly, handling merchant settlement, and performing identity, fraud, and compliance checks on an open ledger. In that world, the need for separate issuing banks, merchant banks, card networks, clearing systems, and settlement intermediaries begins to shrink.
“You don’t need both an issuing and merchant bank,” Hadick said. “You don’t need the card network if the merchant and consumer are already known to the provider. You don’t need the network to facilitate clearing and settlement.”
For Hadick, the winners will not be simple network aggregators sitting in the middle. They will be companies that control the last mile, solve compliance problems, face customers directly, and take real operational responsibility.
Where Retail Investors Can Partake
Hadick remains strongly bullish on stablecoin growth. “ Stablecoins are here to stay,” he said. “I think they’re going to grow tenfold.”
He pointed to an estimate from McKinsey that stablecoins account for roughly 3% of cross-border payments, up from almost nothing a year earlier. Hadick expects that share to continue rising sharply.
As for retail investors, Hadick believes the investment map is not just about who issues the token; it is about who owns the flow.
Overfunded Middleware and Crowded Consumer Fintech
Not every part of the stablecoin market looks equally attractive. Hadick is particularly skeptical of aggregated API (application programming interface) platforms that simply wrap or connect third-party services without taking on compliance or operational risk themselves. These companies may be able to charge high fees today, but Hadick believes their margins are vulnerable.
“They call themselves ‘Plaid for stablecoins,’ forgetting that blockchains already solve many of the original pain points Plaid solved for traditional banking,” he said.
The critique is straightforward. If a company is only aggregating APIs and not owning the customer, compliance layer, liquidity, or operational burden, it may be squeezed as the market matures. To remain valuable, these platforms may need to move closer to the end customer or take on more of the stack.
Hadick also sees risk in consumer fintech. Stablecoin infrastructure makes it easier than ever to launch a neobank or payment app. But that accessibility creates a crowded field.
Established brands such as Nubank, Robinhood, and Revolut can add stablecoin features to existing user bases. That makes it difficult for new consumer startups to stand out unless they offer a clear wedge, strong distribution, or a differentiated regional use case.
Hadick expects failure rates in this category to be high. Still, he does not dismiss the sector entirely. A small number of consumer fintech winners could become large global businesses if they solve real customer problems and use stablecoins as infrastructure rather than branding.
The biggest winners so far may not be the final winners. As the stack collapses, the real value will move toward the companies that own users, flows, compliance, and trust.
The Delaware House of Representatives has passed a bill that would prohibit the operation of cryptocurrency ATMs across the state, citing growing concerns over fraud and consumer protection. The legislation, now headed to the state Senate for consideration, would require all existing crypto ATMs to be shut down and removed within 90 days of enactment.
What the Bill Proposes
House Bill 123, as reported by Decrypt, targets the proliferation of cryptocurrency kiosks that have become common in convenience stores, gas stations, and other retail locations. Lawmakers argue that these machines are increasingly used to facilitate scams, particularly targeting elderly and vulnerable residents who may not fully understand the technology. The bill would make it illegal to operate, maintain, or permit the installation of a cryptocurrency ATM anywhere in Delaware.
Why This Matters for Consumers
Cryptocurrency ATMs allow users to buy or sell digital currencies like Bitcoin using cash or debit cards. While legitimate users appreciate the convenience, regulators have flagged them as high-risk for money laundering and fraud. The Federal Trade Commission has reported a surge in scams where victims are directed to deposit cash into these machines under false pretenses. Delaware’s proposed ban reflects a broader state-level push to rein in unregulated crypto financial services.
Similar Actions in Other States
Delaware is not alone in taking a hard line. Indiana, Tennessee, and Minnesota have previously enacted comparable restrictions or outright bans on crypto ATMs. These measures often include licensing requirements, transaction limits, and mandatory disclosures. The trend signals a growing skepticism among state legislators about the consumer safety risks posed by unmonitored crypto kiosks.
What Happens Next
The bill now moves to the Delaware State Senate, where it will undergo committee review and potential amendments. If passed, Delaware would join a small but growing list of states with explicit bans. Industry advocates argue that such laws could stifle innovation and push transactions underground, while consumer protection groups praise the move as necessary to prevent financial harm.
Conclusion
Delaware’s legislative action highlights the ongoing tension between cryptocurrency adoption and consumer safety. As the bill advances, stakeholders on both sides will be watching closely. For now, the message from Dover is clear: protecting residents from crypto-related fraud is a priority that may outweigh the benefits of unregulated ATM access.
FAQs
Q1: What is a cryptocurrency ATM?
A cryptocurrency ATM is a kiosk that allows users to buy or sell digital currencies like Bitcoin using cash, debit cards, or other payment methods. Unlike traditional ATMs, they are not connected to a bank account.
Q2: Why does Delaware want to ban crypto ATMs?
Lawmakers cite a rise in fraud cases, especially among seniors, where scammers trick victims into depositing cash into these machines. The bill aims to eliminate this vector for financial exploitation.
Q3: What happens to existing crypto ATMs in Delaware if the bill becomes law?
Operators would have 90 days to shut down and remove all machines. Failure to comply could result in penalties. The timeline is designed to give businesses a reasonable window to adjust.
Key Takeaways
Word Play With a Warning
Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” is recasting a familiar piece of investing advice. In a post on X, he argued that many investors only believe they are protected, adding:
“De-Worse-ified means they think they are diversified, but they have all their diversified assets, such as gold, silver, Bitcoin, stocks, bonds, real estate, and oil, in one asset class.”
His point is that spreading money across many holdings does not help if those holdings all move the same way in a crisis. When a liquidity shock hits, correlations rise and supposedly diverse portfolios can fall in unison, leaving investors “de-worsified” rather than diversified.
The commentary is consistent with the stance Kiyosaki has pushed throughout 2026 as he recently named bitcoin among the safest investments for the year, grouping it with what he calls real assets. He has repeatedly listed gold, silver, oil, food, bitcoin, and ether as his preferred holdings, framing them as scarce stores of value that printed money cannot dilute.
He has paired that view with stark price calls, setting a target of $250,000 for BTC by year’s end alongside a longer-term goal of $1 million. At current levels, the move would require a gain of more than 230%. On the precious metals side of things, he recently suggested a possible $200-per-ounce silver level this year, calling the metal’s climb a signal of mounting financial stress.
Kiyosaki’s broader thesis is darker still, warning investors of a historic market crash that he ties to surging global debt and fragile private credit markets, urging followers to build income streams, learn trade skills, and accumulate hard assets before the storm.
Timing Is Everything
The “de-worsified” warning arrives at a tense moment for markets, especially as bitcoin posted its worst week since the 2022 collapse of Sam Bankman-Fried’s FTX exchange, sliding below $60,000 as record exchange-traded fund (ETF) outflows and risk-off sentiment gripped the sector.
That is exactly the kind of broad drawdown scenario (where bitcoin, equities, and other assets fall together) that Kiyosaki has used time and again to illustrate his point.
That said, he has become an increasingly polarizing voice within the broader economic landscape, with skeptics pointing out that his crash predictions are frequent and his price targets aggressive (and that he has issued similar warnings for years). Supporters argue his core message of owning scarce assets, avoiding hidden correlation, and preparing for volatility is a reasonable hedge against an era of heavy money printing and rising debt.
Whether or not his $250,000 bitcoin call lands, the distinction he is drawing is a real one, as true diversification really does depend on owning assets that behave differently (not simply owning many of them). In a market where everything from gold to crypto to stocks can move on the same macro headlines, that lesson may matter more than any single forecast.
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