Business & Investment

Forget Dogecoin: Add this stock instead

The bull market for cryptocurrencies has inspired investors’ imagination since mid-2020. Precious metals have made a strong move in the face of the COVID-19 pandemic. However, this momentum has disappeared, giving way to the rise of digital currencies. Bitcoin and its associates rattled off-record in late 2020 and early 2021. It stopped badly in late spring and early summer. Today I would like to explain why investors need to forget about cryptos like Dogecoin and instead zero in to crypto-focused stocks.

Why Dogecoin and Crypto sank in the spring

Back in May, I Discussed Why was cryptocurrency running into problems? In the spring, cryptography benefited from institutional and influential personal approval. PayPal Announced that it will adopt Bitcoin as a platform in the second half of 2020. Elon Musk, co-founder and CEO of TeslaAnnounced in early 2021 that his company would invest in Bitcoin and accept the digital currency of its products.

With these approvals, Bitcoin has surpassed the price of US $ 60,000. Dogecoin, the cryptocurrency that was first released as a joke in 2013, also rose to a record high in the spring. This will be finished by mid-May.Starring Elon Musk, who boosted Dogecoin through social media Saturday night live In the scripted segment, the cipher was called the “hustle.” This caused a sharp sale that saw the price crater by mid-June.

Elon Musk did not treat the wings of crypto enthusiasts roughly. Late May, Tesla has announced that it will move away from Bitcoin over climate concerns.

That’s why I’m still targeting this stock

The crypto market has solidified since mid-April, but that doesn’t mean investors need to ignore it altogether. Digital currencies are gaining a mainstream foothold, which is unlikely to change the last decade. Investors should consider pursuing stocks that are in a position to profit in this new environment.

Hat 8 mining (TSX: HUT)(NASDAQ: HUT) Is a Toronto-based company that operates cryptocurrency mining. The stock rose 68% in 2021 as of the afternoon trading on July 6th. Stocks surged 490% year-on-year. However, stock prices have more than halved from a record high of $ 15.98.

The company announced its first quarter 2021 results on May 13. Quarterly sales were $ 32.5 million, up from $ 12.7 million in the previous year. Bitcoin prices are still significantly higher than the previous year, which supported Hut 8’s bottom line. Profit on digital assets and digital asset loan receivables in custody reached $ 111 million in 2021. Net profit increased to $ 35.5 million, compared to a loss of $ 10.2 million in the first quarter of 2020. In addition, adjusted EBITDA jumped above $ 600,000 to $ 16 million. Loss of the previous year.

The decline of Dogecoin does not darken the future of Hut8 and other crypto miners. The stock still boasts a favorable price-earnings ratio of 11. Its positive value and its incredible earnings growth have become promising long-term goals.

This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..

A stupid contributor, Ambrose O’Callahan, does not have a position in any of the listed stocks. The Motley Fool does not have a position in any of the listed stocks.

Forget Dogecoin: Add this stock instead Forget Dogecoin: Add this stock instead

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