Today We Introduce Three of the Best Crypto Stocks to Buy in the Second Half of 2024

Wall Street has noted that cryptocurrency shares are capitalizing on the growing acceptance of digital currencies and attracting investors seeking diversification and growth.

As cryptocurrency gains wider acceptance, several companies are emerging as standout choices for investors seeking to capitalize on this burgeoning asset class. These companies provide essential services for the cryptoeconomy while also boasting strong financial performance and growth initiatives. Here are three of the best crypto stocks to buy in the second half of 2024, according to Wall Street.

1. CME Group (NASDAQ:CME)

2. Coinbase Global (NASDAQ:COIN)

3. Marathon Digital Holdings (NASDAQ:MARA)

CME Group (CME)

Kicking off our list of the best crypto stocks is CME Group (NASDAQ:CME), the world’s largest futures exchange. With major derivatives, options and futures exchanges in Chicago and New York City, along with online trading platforms, CME is uniquely positioned to benefit from the growing demand for cryptocurrency derivatives.

In late April, CME reported strong first quarter fiscal 2024 results. Driven by robust demand for its risk management products, revenue hit $1.5 billion, up 3% year-over-year (YOY). Notably, crypto average daily volume (ADV) hit a record 82,000 contracts, marking a 70% increase from the previous quarter. Adjusted earnings rose 3% YOY to $2.35 per diluted share.

Moreover, CME is known for returning free cash flow (FCF) to shareholders via special dividends. Since 2012, it has returned approximately $24.8 billion, including $2.3 billion in dividends paid in the first quarter alone. Looking ahead, management forecasts an average 4% annual earnings per share (EPS) growth through 2026.

In other news, CME is reportedly planning to launch Bitcoin trading in Switzerland to capitalize on the growing demand for crypto investments, according to a Financial Times report.

Year-to-date (YTD), CME stock is down 5% but offers a 2.3% dividend yield. Shares are trading at 20.7 times forward earnings and 22.63 times sales. Analysts have set a 12-month price target of $226, indicating an upside potential of 13% from current levels.

Coinbase Global (COIN)

Next on our list of best crypto stocks is crypto exchange Coinbase Global (NASDAQ:COIN). In 2021, Coinbase became the first pure-play crypto trading platform to go public on Wall Street. With a 7% market share of worldwide centralized exchange trading volume, Coinbase provides financial infrastructure and technology for the cryptoeconomy.

In the first quarter of 2024, Coinbase showcased stellar performance. Driven by increased crypto asset volatility and prices, revenue surged 122% YOY to $1.6 billion. Transaction revenue rose to $1.1 billion, accounting for nearly 66% of total revenue. EPS soared to $4.40, compared to a loss of 34 cents per diluted share a year ago. The platform also recorded all-time highs in trading volume and attracted a surge of institutional investors.

Coinbase's strategic expansion into international markets is also pivotal for sustaining its growth trajectory. In the first quarter, international revenue rose to 17% of the total, driven by enhanced banking connections and localized strategies. In April 2024, Coinbase achieved a significant milestone by becoming the largest registered cryptocurrency exchange in Canada as a “Restricted Dealer.”

Since January, COIN stock has surged by 60%. Shares are trading at 34.5 times forward earnings and 49.4 times trailing sales. Analysts project the stock to stay close to its current price of $250 per share.

Marathon Digital Holdings (MARA)

We conclude our discussion of cryptocurrency stocks with Marathon Digital (NASDAQ:MARA). Specializing in digital asset technology, the company focuses on cryptocurrency mining and the blockchain ecosystem.

MARA's latest quarterly earnings were remarkable, with revenues reaching $165 million, a staggering 223% increase YOY. Net income also surged by 184% YOY to $337 million, driven by favorable Bitcoin prices. It's important to note that these results were reported before the April Bitcoin halving event.

In May, MARA bolstered its block wins by 32%, producing 616 Bitcoins despite a slight 27% decline post-halving. This performance underscores the company's commitment to expanding its mining operations and seizing cryptocurrency demand, solidifying its industry position.

Additionally, MARA aims to expand its computing power by 2024, utilizing recent acquisitions and ample liquidity as it transitions into a global technology company with a focus on sustainability. Management is also keen on expanding Marathon Digital's global presence, targeting 50% of revenues to come from overseas by 2028. With $1.