Crypto Bulls Charge Ahead: Top Picks for 2025
As bitcoin prices surge towards $100,000, investors are scrambling to find the best opportunities in the sector. Benchmark analyst Mark Palmer is sticking with two long-time favorites: MicroStrategy and Galaxy Digital.
MicroStrategy: A Crypto Powerhouse
MicroStrategy, founded by Michael Saylor, has transformed from a software company to a crypto behemoth. Saylor’s aggressive bitcoin buying has propelled his net worth to $9.6 billion. While the software business remains robust, Palmer believes it contributes only $2 out of $650 to the company’s valuation. The real value lies in MicroStrategy’s bitcoin reserves, which are akin to oil companies with reserves, valued not just on the reserves but also on the likelihood of tapping them over time.
Saylor’s Bitcoin Hoard
Saylor’s recent headlines-grabbing moves, buying up and “hoarding” bitcoin reserves, may seem unusual, but Palmer likens it to oil companies stockpiling reserves. The key metric is bitcoin yield, demonstrating the additional value created through Treasury operations. MicroStrategy’s recent SEC filing revealed a $5.4 billion spend on 55,000 bitcoins, bringing its total holdings to approximately 386,700 bitcoins.
The Future is Digital
Saylor believes “the future is digital” and that empires are built on productive property, defended by digital power. Bitcoin is that digital power, making it a valuable investment. With MicroStrategy’s significant bitcoin holdings, Palmer sees fair value at $650, a 68% upside from current levels.
Galaxy Digital: Institutional Appeal
Galaxy Digital, led by billionaire CEO Mike Novogratz, has built a business similar to investment banks, focused on cryptocurrency. The company enables trading and lending, appealing to institutional investors seeking sophistication. As institutional investors dive deeper into crypto, Galaxy Digital stands to benefit. Its expansion into artificial intelligence plays, particularly with its West Texas Helios data center, adds to its allure. Palmer sees at least 16% upside from current levels to $29.
A Crypto Power Play
Both MicroStrategy and Galaxy Digital are poised to capitalize on the growing crypto market. With bitcoin prices surging, these two companies are well-positioned to benefit from the increasing adoption of digital currencies. As investors seek to tap into the crypto boom, Palmer’s top picks are worth considering.
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