Stock traders and investors who actively manage their portfolios are busy anticipating and scanning quarterly filings each earnings season, approximately two weeks after the end of each annual quarter.
Crypto stocks, shares of companies built around cryptocurrency, or those with high risk in the digital asset market are no different.
Crypto companies will release earnings reports
As required by the SEC, corporations with listed shares publish earnings reports about the previous quarter, projections of future earnings, and guidance regarding the company’s overall position and position in the market.
Investopedia explains why this is important:
“This is a very active time in the market as participants (analysts, traders and investors) review earnings reports, which can affect positions in or around a company.”
Some of the biggest crypto stocks are facing massive capitulation amid a bearish market that has plunged cryptocurrency prices as many coins posted exceptionally high prices in November 2021.
As you can see from the chart, the major crypto stocks, MSTR, MARA, COIN, RIOT, and VYGVF, are all down in the double digits of negative ROI in the one year view from deep to very deep.
Shown in blue for comparison is the total crypto market cap for coin prices on the liquid crypto exchange markets. The silver lining is Silvergate Capital (NYSE:SI) is up nearly 18% over the past year and better than its peers from the cryptocurrency industry’s downturn.
Meanwhile, the S&P 500 recorded its worst start in a year since 1942. Bitcoin Stock Correlation Thesis Vs Bitcoin Depending on your view of the global strategic macro hedge view, that could be a headwind or tailwind for crypto prices.
But of course, shares of incorporated firms that deal with crypto in some way or another are like NASDAQ stocks in the high-tech industry. If you’ve been long on the prospects of these corporate players in the industry, now or soon may be the time to buy crypto stocks.
Year to date, most large crypto stocks have fallen ahead of either the total crypto market cap or the NASDAQ Composite. (NASDAQ is down some 21% YTD.)
Wall Street Analyst: Time to Buy Crypto Stocks
Marathon Digital
This week, Marathon Digital (NASDAQ:MARA) will kick off crypto earnings season for mining companies, with its earnings report scheduled to be published Wednesday.
It will showcase a new fleet of 70,000 new Bitmain S19 Antminers that the company recently purchased and took delivery of.
Jefferies analyst Jonathan Peterson has a buy rating for Marathon Digital stock, but he and other analysts want to see how the mining company will hold and secure the rig.
Riot Blockchain
Riot Blockchain, Inc. (NASDAQ:RIOT) without any announcement, Jack’s Investment Research estimates, based on previous earnings releases, that it will publish earnings by May 16.
Riot Blockchain bought 42,000 S19 miners in April for $138.5 million and is planning to build a massive electrical substation in Texas, which will be completed by Summer 2023.
A tipster at Tip Rank said that Riot Blockchain stock has been undervalued over the past three months, pointing to a strong buying consensus out of four Wall Street analyst ratings.
coinbase global
Coinbase Global stock (NASDAQ:COIN) suffered a double blow in the first quarter. In addition to a drop in the price of digital assets across the market, Coinbase’s expansion into India was suddenly halted by tough regulatory hurdles.
Barron’s remarks COIN stock is suffering from the same headwinds that have rattled shares of commission-free trading app Robinhood as retail investors have been more cautious this year. As COIN fell to a record low, a JPMorgan analyst hinted at a surprise earnings miss for the first quarter.
But Coinbase shareholders need not panic.
While the share price for Coinbase stock is less than half of its IPO price, Wall Street is still bullish on the exchange next year. 12 Buy, 2 Hold and 2 Sell ratings over the past three months gave the stock a Moderate Buy analyst rating consensus. Overall, they project a 100% upward trend for the crypto stock over the next 12 months.