Investors and stock traders who actively manage their portfolios are always busy scanning quarterly filings for the earnings season. This usually begins approximately two weeks after each quarter’s end.
These include shares in crypto-based companies, shares in companies that are based on cryptocurrency, and high exposure to digital assets.
Crypto Companies will Release Earnings Reports
SEC requires that listed companies publish quarterly earnings reports on the last quarter, future earnings projections, and guidance about the company’s overall position and market position.
Investopedia explains the importance of it:
“This is an active market time as participants (analysts and traders) review the earnings reports. This could affect their positions in or on a company.”
Several of the largest crypto stocks are experiencing massive capitulations in the bearish market, which has settled down cryptocurrency prices. Many coins have posted outrageously high prices in Nov 2021.
Crypto-Related Public Companies Source: TradingView
The chart shows that major crypto stocks MSTR, MARA COIN, COIN, RIOT and VYGVF are all in decline from very deep to very deep in double digits of negative ROI at the one-year view.
The total crypto market cap, which includes coin prices on the liquid crypto exchange markets, is shown in blue. Silvergate Capital (NYSE.SI) is a silver lining. It has risen nearly 18% over the past year, and has been able to recover better than its peers after the downturn in the cryptocurrency industry.
The S&P 500 is now at its worst year-to-date since 1942. It all depends on how you view the Bitcoin stocks correlation thesis and the Bitcoin global strategic micro hedge view. This could either be a headwind, or a tailwind for crypto price.
However, shares in incorporated companies that deal with cryptocurrency in some way are more similar to high-tech NASDAQ stocks. Crypto stocks could be a good investment if you are interested in the future prospects of these industry players.
The year-to-date declines in the major crypto stocks are greater than the total crypto market cap and the NASDAQ Composite. (NASDAQ is down around 21% YTD.
Wall Street Analysts Call for Crypto Stocks
Marathon Digital (NASDAQ;MARA) will launch crypto earnings season for miners this week with an earnings report due to be published Wednesday.
It will showcase a new fleet, 70,000 Bitmain S19 Antminers that the company recently bought and took delivery.
Jonathan Petersen, a Jefferies analyst, has given Marathon Digital stock a buy rating. However, he and other analysts are interested in seeing how the mining company will secure and house the rigs.
Zack’s Investment Research has not received any official announcement from Riot Blockchain, Inc. NASDAQ:RIOT. Zack’s Investment Research believes that Riot Blockchain, Inc. will publish earnings in May 16 based on previous earnings releases.
Riot Blockchain bought 42,000 S19 miners in April for $138.5 Million. They plan to build an enormous electrical substation in Texas by the summer 2023.
Tip Ranks’ tipter said Riot Blockchain stock seemed undervalued. This is based on a Strong Buy consensus based on four Wall Street analysts ratings over the past three months.
Coinbase Global stock (NASDAQ.COIN) suffered double losses in the first quarter. Coinbase’s rapid expansion into India was hampered by strict regulatory hurdles.
Barron’s comments COIN stock is facing the same headwinds as Robinhood’s shares, which have made it difficult for retail investors to be more prudent this year. A JP Morgan analyst suggested that COIN could suffer a surprise Q1 earnings miss as COIN falls to a new record low.
However, Coinbase shareholders shouldn’t panic.
Although Coinbase stock shares are now less than half of its IPO price Wall Street remains bullish for the stock exchange in the coming year. The consensus analyst rating for the stock is Moderate Buy. It has received 12 buy, 2 hold and 2 sell ratings in the last three months. They project a 100% upside potential for crypto stock in the next 12 month.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.