MicroStrategy Joins Nasdaq-100: 2 Crypto Stocks Set to Win

This is where investors can either join the party at the potential highs or start looking for better alternatives in the cryptocurrency space

Investors in MicroStrategy (NASDAQ: MSTR) might be celebrating the company’s addition to the Nasdaq-100 index, but those looking at the stock chart might be left scratching their heads. After all, the stock has rallied an incredible 320% in the last 12 months, largely on the back of the company’s strategy to add Bitcoin to its balance sheet and boost its book value.

Now, with the stock trading at 20x its book value and astronomically high earnings multiples, some investors might be wondering whether there are better alternatives in the market. And there certainly are.

This is where investors can either join the party at the potential highs or start looking for better alternatives in the cryptocurrency space, stocks that can offer much more upside at lower risk levels if the MicroStrategy model were to fail as initially critiqued. Some of these options might be found in Coinbase Global Inc. (NASDAQ: COIN) or even in CleanSpark Inc. (NASDAQ: CLSK).

Coinbase Stock is Standing in the Rain There’s a reason why analysts at Needham & Co. decided to boost their views on Coinbase stock as of December 2024. They kept their buy rating for the company, but this time, their valuation targets increased to $420 a share, calling for a net rally of up to 50.5% from where it trades today.

The reason behind Coinbase's optimism is simple: As more people become interested in Bitcoin and other cryptocurrency trading, this exchange will be in the middle of the storm, sort of standing in the rain, waiting to get wet. This rain would come through the crazy amount of fees generated by all of the trading activity to be had.

This expectation can be reflected in the earnings per share (EPS) projections given by Wall Street analysts today, set to deliver $0.94 in EPS for the next 12 months, a significant jump up from today’s $0.28 EPS. That sort of profit increase should be enough to offer investors a much smoother ride in the coming months than MicroStrategy could.

CleanSpark Can Double From Here, According to Analysts Investors can think of CleanSpark as the less leveraged and less volatile version of MicroStrategy. Both companies follow a similar model of accumulating Bitcoin on their balance sheets to boost the stock’s book value. While both offer software services and use part of their revenues to buy Bitcoin, CleanSpark offers a much better profile.

By trading at only 1.9x its book value, this stock could make a significant run to new highs like MicroStrategy did, especially as investors figure out that the same value created in that expensive stock could be replicated in this discounted one.

That is why analysts on Wall Street now have a consensus price target for the company set at $23.17 a share, which calls for just shy of 110% upside from where it trades today. Considering these valuation multiples, investors can take advantage of the bull runs in Bitcoin with a much better setup through CleanSpark today.