Crypto Crash Hits These 4 Blockchain Stocks—Is It Time to Buy?

Key Points

• A cryptocurrency market crash is leading some blockchain stocks to new lows, presenting opportunities for long-term investors. 
• Several blockchain stocks, including Digihost Technology and Hut 8, are trading at 50-day lows, yet analysts maintain Buy ratings with potential upsides exceeding 100%.
• Institutional investors continue to show confidence in Riot Platforms, increasing Q4 purchases to $533 million.
• Iris Energy is one of the most promising recovery plays, with analysts predicting a 212% upside due to strong earnings and an attractive P/B ratio.

The cryptocurrency market is officially crashing as marketwide bearish sentiment triggers a sell-off among speculators. While the current cryptocurrency crash has been bad news for tokens and blockchain stock values, some investors are taking it as an opportunity to add high-tech holdings to their portfolios. 

These stocks are seeing new 50-day low share values in March, presenting a buying opportunity for investors looking to increase their portfolio’s exposure to emerging blockchain technology. 

Digihost Technology Sees Shares Hover at $1

Digihost Technology NASDAQ: DGHI fell to a new 50-day low on Monday, with shares reaching $1.16 in extended trading. This is a condition of a year-low struggle with share values, with the company seeing a one-year return of -24.48%.

However, new analyst estimates may indicate that the worst is over for Digihost.

Despite struggles with share prices, analyst consensus ratings put Digihost Technologies as a Buy, with a predicted upside of 115.52% anticipated from analysts who rated the stock.

Short interest trends support this optimistic outlook, with interest rates falling by 6.3% in the last month. 

While Bitcoin pricing will play a major role in the valuation of this mining stock, it is now the lowest potential entry point investors have seen since late 2023. 

HUT Sees High Analyst Expectations Despite Dips in Price 

Hut 8 NASDAQ: HUT acquires, builds, manages and operates data centers for digital assets mining, as well as a series of additional artificial intelligence use cases.

Offering exposure to both the mining technology used to harness the power of virtual currencies and the competitive artificial intelligence industry, HUT could be a bargain long-term hold worth considering for growth investors. 

Much of the pessimism surrounding HUT can be attributed to its Bitcoin mining operations, which may cause share prices to take a hit as asset prices do.

Still, analysts have high hopes for Hut 8 in the next year, with a consensus Buy rating and a price target more than 160% above its current 50-day low price of $11.48 per share.  

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Riot Platforms Maintains a Solid Buy Rating Regardless of Recent Struggles 

Another mining service provider hit hard during Bitcoin’s massive sell-off, Riot Platforms NASDAQ: RIOT, saw its shares reach a new 50-day low of $7.56 on Monday.

However, this harsh dip of almost 10% hasn’t deterred analysts’ optimistic recommendations for the blockchain tech company, which maintains a consensus Buy rating from analysts, in addition to a potential price upside of more than 130%. 

Analyst expectations for Riot have been exceptionally positive for months as the company pivots toward AI/HPC hosting to remain competitive with other mining operations like MARA Holdings.

Institutional buying trends are another positive sign, with institutional purchases compounding to $533 million in shares purchased in quarter four of 2024—a jump from just $22 million in the previous quarter. 

Analysts Expect Great Things From IREN, With a 200% Anticipated Upside 

Another choice for international blockchain exposure is Iris Energy NASDAQ: IREN, which is headquartered in Australia.

Despite its recent 50-day low of $6.62 per share, analysts rate this stock a Moderate Buy with a $20.70 price target, suggesting a potential return of more than 212%.

This high price target is bolstered by Iris Energy’s most recent earnings, which beat estimates and took the company from a negative EPS to a positive one.

Its P/B ratio also tells a positive story, with the company’s current 0.97 value indicating that shares may be undervalued compared to assets held. 

Additionally, the company has been expanding its mining capacity, positioning itself for future growth in the sector. With strong fundamentals and a favorable industry outlook, Iris Energy could be a compelling option for blockchain investors.