The digital currency sector has experienced significant upward movement throughout the current month. Bitcoin (BTC), the world’s leading cryptocurrency by market capitalization, reached a peak value of $123,091.61 on July 14th. Since then, its price has stabilized around $118,000. Ethereum (ETH) has demonstrated a substantial recovery, increasing in value by over 57% in the last thirty days.
This surge in cryptocurrency values is fueled by optimistic news regarding international trade and the diminished concerns about an imminent economic downturn in the United States. Moreover, progress in establishing clear and supportive regulations is a primary driver of the cryptocurrency market’s growing strength.
Given the current market conditions, investing in stocks of companies heavily involved in the cryptocurrency space could prove beneficial, particularly those holding a favorable Zacks Rank indicating potential for near-term gains. Here are five stocks that may fit this profile: Robinhood Markets Inc. HOOD, Interactive Brokers Group Inc. IBKR, IREN Ltd. IREN, Visa Inc. V, and Cipher Mining Inc. CIFR.
On July 18th, President Donald Trump approved the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), legislation designed to provide a regulatory framework for stablecoins within the United States. Stablecoins are a type of cryptocurrency designed to maintain a consistent value relative to a more stable asset, such as the U.S. dollar. Major retailers, including Walmart and Amazon, are reportedly exploring the possibility of creating their own stablecoins, aiming to lessen their reliance on traditional payment systems like credit cards.
Two key proposed regulations related to cryptocurrencies are still under consideration: The CLARITY Act and The Anti-CBDC Surveillance State Act. The CLARITY Act seeks to establish clear definitions for when a cryptocurrency should be classified as a commodity versus a security.
Specifically, The CLARITY Act intends to create a regulatory environment for digital assets, excluding stablecoins. This would enable cryptocurrency exchanges to register with the Commodity Futures Trading Commission, thereby reducing the regulatory oversight of digital currencies by the Securities and Exchange Commission.
The purpose of the Anti-CBDC Surveillance State Act is to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) directly to individuals, or indirectly through intermediaries. The legislation also aims to prohibit the Federal Reserve from developing or issuing a CBDC without explicit approval from the U.S. Congress.
The chart displayed below illustrates the recent performance of the five selected stocks over the past month.
Zacks Investment Research
Image Source: Zacks Investment Research
Robinhood Markets offers a platform for financial services within the United States. Through their platform, users can invest in a variety of assets, including stocks, exchange-traded funds (ETFs), options, gold, and various cryptocurrencies. Robinhood Crypto, a dedicated platform within Robinhood, facilitates the buying and selling of Bitcoin, Ethereum, Dogecoin, and other digital currencies.
With an increase in retail participation in financial markets, Robinhood (HOOD) anticipates increased revenue from trading activities. Acquisition strategies and product diversification efforts, aimed at establishing a leading position in the active trader market, are also expected to positively impact the company’s financial performance.
Robinhood’s integrated operational structure is likely to accelerate the development and release of new products. Furthermore, a strong liquidity position will enable sustainable share repurchase programs for HOOD. The stock currently holds a Zacks Rank #1 (Strong Buy). A complete list of today’s Zacks #1 Rank stocks is accessible online.
Projections for Robinhood Markets indicate revenue and earnings growth rates of 26.8% and 20.2%, respectively, for the current fiscal year. The Zacks Consensus Estimate for current-year earnings has seen a positive revision of 6.5% over the past 30 days.
Interactive Brokers Group, with a Zacks Rank #1, is a leading global automated electronic broker. IBKR facilitates the execution, processing, and trading of cryptocurrencies. The company’s commodities futures trading desk provides clients the ability to trade cryptocurrency futures contracts.
IBKR’s commitment to developing proprietary software, maintaining efficient compensation expenses in relation to net revenues, expanding its customer base in emerging markets, strengthening its global presence, and benefiting from relatively higher interest rates are all factors expected to contribute to sustained revenue growth. IBKR’s ongoing efforts to expand its product offerings and the scope of its services will further support its financial performance.
For Interactive Brokers Group, projections suggest revenue and earnings growth rates of 7.4% and 9.7%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has increased by 9.7% over the last month.
IREN, a Zacks Rank #2 (Buy), specializes in Bitcoin mining. The company builds, owns, and operates data center infrastructure, with a focus on establishing operations in areas where abundant and/or underutilized renewable energy sources can be utilized to power its activities.
IREN is anticipated to experience revenue and earnings growth rates of 86.1% and over 100%, respectively, for the current fiscal year (ending June 2026). The Zacks Consensus Estimate for the current-year earnings has been revised upwards by 17.3% in the past 30 days.
Visa, also holding a Zacks Rank #2, is benefiting from the ongoing transition to digital payments. Strong domestic transaction volumes are contributing to its overall positive performance. V is actively taking steps to modernize international money transfers.
In a move focused on increasing the efficiency of global transactions, V is extending its stablecoin settlement capabilities to the Solana blockchain, which is known for its high performance. This expansion by V includes partnerships with prominent merchant acquirers Worldpay and Nuvei, marking a significant development in the digital payments landscape.
The anticipated revenue and earnings growth rates for Visa are 10.3% and 13.1%, respectively, for the current fiscal year (ending September 2025). The Zacks Consensus Estimate for the current-year earnings has seen a slight improvement of 0.1% over the last 30 days.
Cipher Mining, with a Zacks Rank #2, operates as an industrial-scale Bitcoin mining company. CIFR also provides high-performance computing (HPC) services, including those related to artificial intelligence. CIFR continues to expand its pipeline of power capacity at strategically located, high-quality data center sites, intended for either Bitcoin mining or HPC applications.
Projections for Cipher Mining indicate revenue and earnings growth rates of 72% and -150%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has been positively revised by 18.6% in the last 60 days.
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