Phishing Scams

Phishing scams are a prevalent threat in the crypto world. Scammers use emails, text messages, or even fake websites to trick you into providing your private keys, passwords, or other sensitive information. 

These fraudulent messages often appear to come from legitimate cryptocurrency companies, leading users to malicious websites where their information can be stolen.

To avoid phishing scams, never click on links from unsolicited emails or messages. Always double-check the URL of any website you are entering your credentials into, and enable two-factor authentication (2FA) on all your accounts for added security.

Rug Pulls

Rug pulls are particularly notorious in the DeFi (decentralized finance) and NFT (non-fungible token) markets. In a rug pull, developers create a seemingly legitimate crypto project or token and attract investors. 

Once a significant amount of money has been invested, the developers withdraw all the funds, leaving investors with worthless tokens.

To prevent falling victim to a rug pull, conduct thorough research on any project before investing. Look into the development team, read the whitepaper, and be cautious of projects that promise guaranteed returns or lack transparency​​.

Romance Scams

Romance scams have found their way into the cryptocurrency space. Scammers create fake profiles on dating sites or social media platforms to establish a relationship with their targets. Once trust is established, they lure victims into investing in fake crypto schemes or directly ask for cryptocurrency.

To protect yourself, be wary of individuals who profess love quickly, avoid video calls, or ask for money or crypto investments. Always verify the identity of people you meet online and never send money to someone you haven’t met in person​​.

Fake Investment Schemes

Fake investment schemes are designed to lure investors with the promise of high returns. Scammers create convincing websites and social media profiles that look like legitimate investment platforms. They might also impersonate well-known personalities or companies to gain trust.

These schemes often ask for an initial investment with promises of quick and high returns. Once the investment is made, the scammers disappear with the money. 

To avoid such scams, be skeptical of any investment opportunity that guarantees returns, and always do your own research before investing​​.

SIM-Swap Scams

SIM-swap scams are increasingly common and involve hackers taking control of your phone number by tricking your mobile carrier. Once they have control, they can bypass 2FA and gain access to your cryptocurrency accounts, draining them of funds.

To mitigate the risk of a SIM-swap scam, avoid using SMS-based 2FA for critical accounts. Instead, use app-based authenticators like Google Authenticator or hardware-based security keys. Additionally, contact your mobile carrier to add extra security to your account, such as a PIN or password​​.

How to Protect Yourself

• Research Thoroughly: Always conduct extensive research on any project or investment opportunity. Verify the legitimacy of the team and the project’s claims.
• Enable Strong Security: Use strong, unique passwords for your accounts and enable 2FA wherever possible. Avoid using SMS-based 2FA and opt for app-based or hardware security keys.
• Be Skeptical: If an offer seems too good to be true, it probably is. Avoid investments that promise guaranteed returns or pressure you into making quick decisions.
• Verify Sources: Always verify the authenticity of messages, emails, and websites. Do not click on links from unknown sources, and use official channels to access your accounts.
• Stay Informed: Keep yourself updated on the latest scams and security practices by following trusted sources and communities within the crypto space.

By staying vigilant and adopting these protective measures, you can significantly reduce your risk of falling victim to cryptocurrency scams. Remember, in the world of crypto, caution and due diligence are your best defenses​​.

The post 5 Crypto Scams To Watch Out For appeared first on Investment U.

What is Kendu Inu Coin? 

After diving into Kendu Inu’s website and social media pages, there really isn’t much to say about the coin itself. That’s because this crypto project isn’t working on a larger mission. There is no white paper outlining the project’s roadmap or new technology being built. The whole point of the project is just to attract users so that the coin’s price surges.

On its website, Kendu Inu’s mission statement says that Kendu

“Inspires his army of loyalists daily to sculpt a haven where hard work births prosperity, while striking fear in the hearts of jeets. Witness the epic rise of Kendu Inu, the next billion-dollar meme ecosystem.”

Huh. The website also states, “We don’t gamble. We work.” I wonder what they’re working so hard on since there doesn’t seem to be any type of roadmap at all.

Despite this lack of a roadmap, Kendu Inu’s price has soared recently. According to CoinGecko’s price data, Kendu Inu coin surged from $0.00005 in early June 2024 to $0.0002 as of mid-June – a movement of roughly 300%. The price movement started around June 4th, so I did some research to try and find a catalyst.

Through Kendu Inu’s Twitter, I learned that a few major events happened around June 4th:

• Kendu Inu bought a billboard on Times Square.
• Kendu Inu applied to get listed on Binance.

There’s a good chance that lots of people saw the billboard and bought Kendu Inu which is what caused the price run-up. Or, people saw the news about the Binance listing application and rushed to buy the coin.

Price run-ups could continue if Kendu Inu keeps gaining popularity. But, to be clear, Kendu Inu doesn’t seem to have any long-term roadmap outside of “grow the community” and “hopefully we all get rich.” If you buy Kendu Inu coin then you’re essentially making a bet that this coin could become the next Doge, Shiba Inu, or Bonk coin. But, that doesn’t mean that you shouldn’t buy it.

Leveraging Moonshot Investments

Investing in cryptocurrency still tends to get a bad reputation. If you bring up this topic in conversation, most people will likely give you a small eye roll and change the topic quickly. However, with BTC and ETH both getting approved for ETFs, more validity is coming to the space. It may only be a few more years until investing in lesser-known coins starts to be considered a legitimate investing strategy. It could even become similar to angel investing.

At its core, buying new cryptocurrencies is a moonshot investment. If you buy a meme coin, you’re doing so with the hopes that it can 10X or even 100X your money fairly quickly. This strategy is little different than angel investing, which involves investing in startups. With angel investing, venture capitalists place bets on dozens of early-stage companies. They know that  90% of the companies they invest in will fail. But, they’re hoping that just one startup out of ten will become the next Facebook (Nasdaq: META). Finding this one winner makes up for all the other startups that fail.

Of course, the biggest difference is that startups almost always have a mission statement, a product or service, and revenue (usually). Kendu Inu coin doesn’t have any of this and probably never will. But, you can still borrow the same investing strategy that angel investors use.

When it comes to buying meme coins, it’s a good idea to allocate a small percentage of your portfolio to early-stage coins in hopes of earning an outsized return. Getting in early on the next meme coin can immediately make up for money that you lose on other bad bets. But, this brings me to my most important point.

Only Invest Money That You Can Afford to Lose

The Kendu Inu community is small and growing incredibly quickly. It’s impressive that the coin is already this well-known despite its young age. If you’re looking to find the next big meme coin then it’s certainly a good bet. But, if you want to buy Kendu Inu coin it’s a good idea to only do so with money that you can afford to lose. Remember, any asset that can rise 300% in one month can fall 300% in one month just as quickly. 

Additionally, beware that the Kendu Inu community deliberately tugs at people’s FOMO (Fear of Missing Out). Its Twitter page is loaded with comments about how you “don’t want to miss out”, “buying Kendu Inu will make you rich”, and other quotes that sound like they’re straight out of the Stratton Oakmont Sales Manual. Even the Time’s Square billboard starts off with “Missed Shiba Inu?” All of this marketing is designed to try and manipulate investors into buying Kendu Inu in hopes of earning a massive return. Keep this in the back of your mind when doing your own due diligence.

So, How Do you Buy Kendu Inu?

Kendu Inu is traded on decentralized exchanges right now. The best way to purchase is to use uniswap and trade Shiba/ETH pairing. 

Simply, connect Uniswap with either your MetaMask, WalletConnect, or Coinbase wallet, select the sell amount for ETH and recieve your Kendu in your connected wallet.

Here’s a great video posted on reddit walking through the entire set up. 

I hope that you’ve found this article valuable when it comes to learning about Kendu Inu. If you’re interested in learning more then please subscribe below to get alerted of new investing opportunities from InvestmentU.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. Ted also did not own Kendu Inu coin at the time of writing.

The post Should You Buy Kendu Inu Coin? appeared first on Investment U.

At the time, Solana was still very much a speculative investment. But speculators who took the chance have seen a huge increase in value of Solana crypto. And this comes despite a drop-off at the end of 2021 and bear market through ’22 and ’23. However, the next several months or so could be just as interesting.

What caught our attention was the three-point plan to revolutionize the way crypto transactions work. At the time, there were a swath of “to-the-moon” rug pulls and scam coins that seemed to be getting released every week. In fact, some estimates suggest that DeFi (decentralized finance) rug pulls and exit scams make up 99% of all fraud in the crypto markets.

But Solana crypto came to the table with a plan. It didn’t just promise to reward investors. The company started making good on its plan. It also happens to be rewarding investors in the process. That’s why we’re so bullish on this relatively new crypto. And we’re not the only ones. Trading volume has been way up on Solana crypto since it skied to upwards of $250 in the fall of 2021.

Naturally, as exposure grows, there will be ups and downs in line with the greater crypto markets. But it’s a lot easier to make an educated guess about a Solana crypto price prediction now… since it appears it’s just starting to warm up.

Succeeding Where Others Fall Short

Solana crypto’s founder famously published a white paper draft that laid out a new timekeeping technique called Proof of History (PoH). This proposal was developed to fix one of the major limitations cryptos like Bitcoin and Ethereum faced in terms of scalability. You see, the time that’s required to reach a consensus on transactions was largely seen as a major drawback. But PoH was a way to automate that whole process… And it could act as a crucial element that would allow crypto networks to scale beyond their previous capabilities.

The white paper generated a lot of attention. It wasn’t long before Solana Labs formed. And it began recruiting engineers from the likes of Qualcomm (Nasdaq: QCOM) and Apple (Nasdaq: AAPL). Within a couple of years, the team had raised $20 million to fund its new crypto network. And less than a year later, Solana crypto was launched.

In the process, the core team behind Solana has proven the success of the PoH model. The records (or “blocks”) for most cryptos are limited in size and frequency. And that can dramatically slow down transaction times. The PoH model fixes this problem. But the Solana network also uses a Proof of Stake consensus algorithm, which helps keep the network secure.

Solana crypto is also currently exploring ways to reduce transaction fees. When these fees were first introduced, they were a means to keep bad actors from overloading crypto networks. But the speed of the PoH model largely reduces this problem. That makes it cheaper to transfer coins from one wallet to another.

And lastly, Solana crypto excels at avoiding confirmation delays… This just means it won’t take as long for deposits to be processed. In fact, Solana has proven to be able to process 50,000 transactions per second, with a transaction fee of just $0.00001. Not too shabby compared to other tokens.

A Solana Crypto Price Prediction: Why It Still Has Plenty of Upside

Despite the wild moves in value and the technical breakthroughs, it’s important to keep in mind one important detail: The Solana crypto network is no longer in its beta stage. Investors now have access to staking rewards – which seems to be the norm these days. But that’s why a Solana crypto price prediction is so hard to pin down.

The upgrade is now live, and it’s anybody’s guess as to how high Solana crypto can go. But it’s certainly not out of the question that it could reach a triple-digit valuation by the end of the year… especially if it stays on its current production timetable and volatility dies down.

Solana has already shaken up the crypto community. And now that more investors are sitting up and taking note, we’ve got a pretty good feeling that Solana’s future is bright. It set out to revolutionize the way crypto transactions take place. We’re seeing it do that in real time now. In the process, it’s making a whole lot of people’s crypto wallets feel a little bulkier these days, with even more to come.

Even now in 2024, it still has tremendous upside. It hasn’t kept up with the surge in bitcoin, it still follows all of the same fundamentals that make it strong, and it could potentially be in line for the next crypto ETF.

The Bottom Line on the Solana Crypto Price Prediction

Part of what makes the crypto markets so fascinating is that they’re driven by innovation. Another part is that they’re knocked back down by headlines. Crypto expert Andy Snyder has long described crypto as the very definition of a headline-driven market. And it’s true. A tweet from the right person can send the value of a token skyward in a moment’s notice. But Solana isn’t some meme-based token. It’s built on a solid foundation. Don’t expect to see a TITAN-type situation here.

This makes a Solana crypto price prediction a lot easier to make. We don’t expect to see Elon Musk or Mark Cuban making statements about it. But we do expect Solana crypto and the network it’s built on to continue down its path of innovation. So as long as the crypto markets stay relatively healthy, Solana should continue its upward trajectory well past the $100 mark. And in a matter of a few years, if it does indeed become one of the standard cryptos – as we think it could – it should be worth a whole lot more than that.

The post Making an Informed Solana Crypto Price Prediction appeared first on Investment U.

When it comes to crypto, one strategy for investing success is to look for coins that are backed by an exciting project or have a clear mission. These coins separate themselves from the pack because people actually have a reason to buy them and get invested in the community. If enough people become interested in the coin’s mission then more people will buy in over time – which will likely send the coin’s price up and to the right.

The flip side of this strategy is meme coin investing. For the most part, meme coins really have no project or reason for people to buy them. There’s no real reason why someone would want to buy a coin like DogeCoin. They are either trying to make some cash by anticipating rally or they just think it’s funny.  DogeCoin isn’t working on any major projects and doesn’t have a real mission statement. But, this isn’t the case with a coin like Pi Coin.

Latest Pi Coin News

I dug through Pi Coin’s entire white paper and learned a few key takeaways. Pi Coin aims to offer a better take on Bitcoin by improving it in two main areas:

1. Making mining easier: One big complaint with BTC is that it has become too hard to mine. The mining industry has become consolidated into a few major players and requires immense computing power which makes it hard for regular people to compete. This eliminates one of the big benefits of participating in the Bitcoin network. Pi Coin wants to offer a better alternative by letting its users mine Pi Coin from their phone.
2. Creating less scarcity: Another issue with BTC is that people treat it more like “digital gold” as opposed to “digital money.” In other words, people hoard it instead of spending it. Pi Coin wants to solve this problem by creating a wider supply of coins. This will ideally create a more stable price which will encourage people to spend their Pi Coin freely without missing out on massive price swings.

Another main benefit of Pi Coin is that it’s designed to be mobile-friendly. This isn’t true for a lot of coins. The creators of Pi Coin want to help people capitalize on the time that they spend online. Instead of using their attention to scroll Instagram (NASDAQ: META) users can spend time in Pi Coin’s community where they can mine their own Pi Coin. So, instead of giving Mark Zuckerberg money by scrolling through his app, users can take control of their online presence back. Like almost all crypto projects, Pi Coin is all about taking control back from major finance and tech companies.

Pi Coin was founded by two Stanford graduates and currently has 55 million members in its network. The team is focused on building the world’s most inclusive peer-to-peer ecosystem and online experience. 

Is Pi Coin a Scam?

While researching, I noticed a lot of Pi Coin updates calling it a scam. In particular, Pi Coin has been heavily criticized on Reddit. I do not think Pi Coin is a scam. I think that it’s simply an ambitious cryptocurrency project with lofty goals that may take time to achieve (if they ever achieve them at all). If some investors are buying Pi Coin expecting a huge price pump then they might not understand what they’re investing in.

You should view buying Pi Coin like buying shares of a startup. Most startups are on a mission to achieve a goal of some sort. For the most part, the founders have the best intentions on reaching their mission. But, most startups also fail because…well…changing the world is hard. Pi Coin seems to be in a similar position. 

The management clearly put tons of thought into the white paper which is a telltale sign that it’s not a scam. But, that also isn’t a guarantee that Pi Coin’s price will surge. It’s also important to be wary of Pi Coin’s leadership team. As long as the team’s intentions remain pure then there’s nothing to worry about. But, if it feels like the leadership team is starting to mislead their community then it’s time to find another crypto project to be apart of.

Should You Buy Pi Coin?

Based on their white paper, the goal is for Pi Coin to be used as currency – not an investment. I checked its price history and the coin is up roughly 100% in the past year. In the crypto world, this actually isn’t very much at all. Additionally, the coin’s price seems fairly stable except for a few spikes and dips. So, I wouldn’t recommend buying Pi Coin unless you were invested in joining the community.

If you’re trying to anticipate the next meme coin rally then Pi Coin is the wrong coin (instead, you could check out coins like Bonk Coin). Pi Coin seems to be a legitimate project that’s focused on creating a legitimate alternative to Bitcoin. If this is something that interests you then, by all means, buy as much Pi Coin as you want.

I hope that you’ve found this article valuable when it comes to learning the latest Pi coin news. If you’re interested in learning more then please subscribe below to get alerted of new articles as I write them.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post Pi Coin News: The First Crypto You Can Mine on Your Phone appeared first on Investment U.

What is Meme Trading?

As investors, we’ve entered uncharted territory when it comes to asset prices and valuations. A decade ago, the thought of an asset surging 1,000% or more in a few days was insanity. That’s because stock prices were tied closely to a company’s valuation – which fluctuated slowly over time as the company released new sales data and information. But, that’s no longer true for some stocks and most cryptocurrencies.

In today’s world, both stocks and cryptocurrencies can experience massive price swings based on nothing more than a tweet. This has created a concept called “meme trading” where investors try to anticipate massive rallies in stocks or cryptocurrencies in hopes of scoring big gains. 

Investment Disclaimer

I’m not a financial advisor, so I won’t tell you what to do with your money. But, I’d strongly recommend treating meme trading as one step up from gambling. Traditional investing is a calculated bet that an asset will increase in value over time. Gambling is a totally random game of chance. Meme trading is somewhere in between.

Meme trading isn’t a complete gamble, since you can try to anticipate rallies in certain coins and front run them. You also usually won’t lose your entire investment (although you might lose a lot of it). However, meme trading is much riskier than normal investing since these assets are not tied to legitimate assets. I’d recommend only allocating a small percentage of your portfolio to meme trading. Make sure you’re only investing money that you can afford to lose. Fortunately, even a small bet on a meme trade can pay off big time.

If you’re new to meme trading then remember this: any asset that can rise 1,000% in a day can also fall 1,000% in a day. Now, with that out of the way, let’s discuss the current BONK Coin price.

BONK Coin Price: The Next DogeCoin?

According to Coinbase, Bonk Coin’s price has surged over 5,000% over the past year. But, it still trades at just a fraction of a cent. This means that you can buy plenty of BONK coin with just a little bit of capital.

If you’re not familiar, BONK trades on the Solana blockchain and was originally airdropped to members on Christmas Day in December 2022. The coin describes itself as a “dog coin of the people” – whatever that means. Like its predecessors DogeCoin and Shiba Inu coin, BONK also uses a Shiba Inu as its mascot.

Coinbase claims that BONK coin is the most-held dog-themed cryptocurrency on Solana’s blockchain. Additionally, according to BONK’s website, it is the most traded token on Solana apart from SOL and USDC.

Here are a few other BONK Coin facts:

1. Commonly available: You can buy BONK on most major crypto exchanges
2. 129 integrations: BONK coin is integrated across 129 different platforms (exchanges, gaming, NFTs, wallet, etc)
3. 690,000 holders: BONK coin currently has 690k holders.

Is BONK COIN Price Going to Surge?

Trying to anticipate a surge in BONK Coin price will be tricky. But, it’s not impossible. Here are a few things to keep an eye on when trying to anticipate a surge in price:

1. Getting picked up on new exchanges: BONK Coin surged recently after getting listed on the South Korean exchange, Bithumb. In general, getting listed on a new exchange causes a cryptocurrency to surge because more people will be able to buy it. Now, whether or not more people actually buy it remains to be seen. But, getting listed on a new exchange creates the possibility that more people could buy it – which is all it takes to spark a rally. Since BONK already trades on most platforms, I wouldn’t really use this to try and anticipate a rally.
2. Virality: This is by far the most important thing to stay on top of. If BONK coin starts to go viral then it’s a sign that a price surge could be right around the corner. Right now, BONK has just under 300,000 followers on X (formerly Twitter). This is a sizable following, and one of its notable followers is the Wall Street Bets main account. This is a good sign that BONK could continue to gain traction – especially if the WSB crowd starts talking about it. BONK has a modest following on Instagram and almost no followers on TikTok. But, Twitter is really the starting point for most of the action anyway – as Twitter has the strongest finance community of all social platforms. If you see BONK coin interacting with major social media personalities then it could be a sign to start piling in.
3. New outlets: I go back and forth on this one. Usually, if you see a stock or crypto mentioned in a major news publication then it means you’ve already missed the rally. But, if you see small crypto-centric publications talking about BONK then you could still be ahead of the curve. It all depends which news outlets mention BONK and what they’re saying.

So, how should you try and front-run any increase in BONK Coin price?

In all honesty, it’s not a terrible idea to just invest as much money as you’re comfortable losing and then wait. Again, this isn’t traditional investing where you want to try and get the best entry point possible when buying an asset. This is meme coin trading. It doesn’t really matter if you buy in at $.000024 or $.00003 because you’re hoping for a 1,000% change in price anyway. Simply buying and HODLing BONK is a surefire way to ensure that you don’t miss a rally. 

That said, you can also be a bit more strategic when buying BONK coin by following this strategy:

1. Follow BONK Coin on all major social platforms
2. Set up social alerts and news alerts for BONK coin
3. Stay up-to-date on these alerts daily, if not hourly

The main goal is just to stay as up-to-date as possible on BONK coin. That way, you’ll know right away if BONK coin shows the early signs of virality. For example, if Elon Musk tweets that you’ll soon be able to buy a Tesla (NASDAQ: TSLA) using BONK coin then you’ll be one of the first to know – and can buy in accordingly..

I hope that you’ve found this article valuable when it comes to learning about BONK Coin price and a few ways that you can front-run any movement in the price. If you’re interested in learning more then please subscribe below to get alerted of new articles as I write them.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post BONK Coin: Front-running the Next Meme Coin appeared first on Investment U.

With this in mind, I’ve broken down my top 5 Bitcoin mining stocks – ranked in order from my favorite to least favorite.  

Bitcoin Mining Stocks: What to Know

As a quick reminder, Bitcoin miners play a dual role in the Bitcoin ecosystem. They help verify transactions and maintain the integrity of the Bitcoin network. For their hard work in verifying transactions, miners receive Bitcoin (which helps add coins to the total supply).

Mining Bitcoin requires solving complex mathematical problems, which requires heavy computing and enormous amounts of electricity. From a business perspective, mining Bitcoin profitably requires using the cheapest electricity while maximizing the amount of BTC that you can mine.

The profitability of mining Bitcoin fluctuates dramatically as it is very closely tied to the price of BTC. Now, let’s jump into my picks for the top 5 Bitcoin mining stocks to keep your eyes on.

1.) Marathon Digital Holdings (Nasdaq: MARA)

My analysis is based on Marathon Holding’s Investor Presentation that it posted on March, 19th, 2024.

2023 Revenue: $387 million 

2023 Net Income: $261 million

BTC Held: 16,930 BTC

When it comes to Bitcoin mining stocks, Marathon Holdings is one of the biggest players in the came. It boasts one of the biggest portfolios of mining sites, including locations in Paraguay, Africa, and UAE. 

Marathon is also leaning toward establishing full ownership of its locations. It recently acquired three fully-owned BTC mining farms, helping increase its percentage of owned facilities from 4% to 54%. Taking more ownership over its facilities allows Marathon to improve its cost per coin, increase control/efficiency, and expand its ability to optimize operations by using its own tech.

Marathon also takes a very environmental approach to mining Bitcoin. The company reported being 100% carbon neutral in 2023 and that 55% of its energy came from sustainable sources in Q4 2023. This stance will undoubtedly help Marathon Digital curry favor with investors, government agencies, and the general public as the crypto industry matures.

2.) Riot Platforms (Nasdaq: RIOT)

My analysis is based on Riot Platform’s Investor Presentation that it posted on April 18th, 2024.

2023 Revenue: $281 million

2023 Net Income: $-49 million

BTC Held: 8,490

Riot Platforms is usually one of the first names that comes to mind when you think of Bitcoin mining stocks. After Marathon, Riot is the second-largest holder of BTC among Bitcoin miners. It holds 8,490 Bitcoins, which is more than most other miners. It’s also more than SpaceX or Block Inc. (NYSE: $SQ). 

Riot Blockchain is also a leader in “curtailment”, which is the practice of shutting down operations strategically. When there is a lot of stress on the energy grid, Riot can shut down operations and direct its energy usage elsewhere. For this sacrifice, Riot receives payment from the grid operator. 

Curtailment can help bring stability to energy grids, which makes this practice especially popular with investors, government agencies, and the general public. But, curtailment is a win-win-win for Riot. Riot can use curtailment to curry favor with external stakeholders, receive energy credits, and save money on transmission costs. Riot estimates that it saves $1 million per month on transmission costs thanks to curtailment. 

Riot is also investing its revenues heavily back into its business. Mainly, it is building/expanding its Rockdale and Corsicana factories. For these reasons, I consider Riot Platforms to be of the top bitcoin mining stocks to buy.

3.) CleanSpark (Nasdaq: CLSK)

My analysis is based on CleanSpark’s Investor Presentation that it posted in February 2024.

2023 Revenue: $168 million 

2023 Net Income: $-137 million

BTC Held: 3,573 BTC

CleanSpark boasts six BTC mining facilities, mainly located throughout Georgia. Over the years, CleanSpark has shown consistent revenue growth and a commitment to buying and holding Bitcoin. This Bitcoin mining company is growing quickly and has done a good job of weathering the many downturns of the crypto market.

However, a major concern is that CleanSpark’s expenses have been growing just as quickly as its revenue. In 2023, the company reported a net loss of $136 million, up from a loss of $57 million in 2022.

4.) Cipher Mining (Nasdaq: CIFR)

My analysis is based on Cipher Mining’s Investor Presentation that it posted on March 5th, 2024.

2023 Revenue: $127 million 

2023 Net Income: $-26 million

BTC Held: 1,433 BTC

Cipher Mining isn’t as big as others on this list, which is why I’ve listed it at #4. However, this Bitcoin mining company growing quickly. It reported revenue of $126 million in 2023, a massive increase from just $3 million the year before. If this growth is any indication of the leadership’s plans moving forward then you’ll want to keep Cipher Mining on your radar.

Cipher Mining currently owns three facilities: Odessa, Alborz, and Bear & Chief. But, the company is planning to expand rapidly in 2024.

5.) Iris Energy (Nasdaq: IREN)

My analysis is based on Iris Energy’s Investor Presentation that it posted in February 2024.

2023 Revenue: $75.5 million

2023 Net Income: $-172 million

Market Cap: 

I’ve included Iris Energy on this list as it’s one of the few diversified Bitcoin mining companies. Most BTC mining companies are fully invested in mining. On the other hand, Iris Energy owns and operates data centers. It uses these data centers for Bitcoin mining, AI cloud services, and other high-powered computing. 

With this in mind, Iris Energy could be poised to benefit from the popularity of AI, in addition to crypto. Based on this alone, Iris Energy is worth following over the coming years. However, with a 2023 net loss of $172 million, Iris Energy clearly still has some work to do.

Bitcoin Mining Stocks: Honorable Mentions

There are a few more Bitcoin mining stocks that are worth researching, even though they did not make my top five. These companies are:

• Bitfarms (Nasdaq: BITF): You can learn more from their Investor Presentation.
• Bit Digital (Nasdaq: BTBT) You can learn more from their Investor Presentation.
• Hive Technologies (Nasdaq: HIVE): This is another crypto company that’s worth checking out. It’s not quite a pure mining company. But, it provides computing power to mining companies.

The Bitcoin mining space is a fascinating blend of new technologies (mining rigs and blockchain) and old technologies (energy). The industry seems to evolve almost quarterly, with miners racing against each other to find the best sources of cheap, efficient energy to maximize their output. For the companies that get it right, the potential payoff is enormous. I’m looking forward to watching the industry evolve over the coming years.

I hope that you’ve found this article valuable when it comes to discovering the top 5 Bitcoin mining stocks to buy. If you’re interested in learning more then please subscribe below to get alerted of new articles.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post The Top 5 Bitcoin Mining Stocks (Ranked) appeared first on Investment U.

Who is HIVE Technologies?

HIVE Technologies is an energy company that provides computing power for both Bitcoin mining and artificial intelligence. The company mainly focuses primarily on green energy solutions (hydroelectric power) in politically stable countries like Canada, Sweden, and Iceland.

To get a better understanding of whether or not you should buy HIVE stock, I dove into the company’s financial statements.

HIVE’s Last 3 quarters

Here is how HIVE has performed over the last three quarters: 

• December 2023

• • • Revenue: $31.25 million (+118% annually)
    • Net Income: $-6.95 million (+92% annually)

• September 2023

• • • Revenue: $22.77 million (-23% annually)
    • Net Income: $-24.55 (+27% annually)

• June 2023

• • Revenue: $23.57 million (-46% annually)
  • Net Income: $-16.25 million (+88% annually)

Right away, we can see that revenue is growing fairly consistently on a monthly basis, jumping from $23.57m to $31.25m over the course of the year. On an annual basis, HIVE’s revenue dropped from $211.18m in 2022 to just $106.32m in 2023. Not good. But, revenue isn’t the main focus for a company like HIVE. HIVE is a Bitcoin miner that owns a significant amount of BTC. So, as BTC’s price increases, so will HIVE’s value. To find out how much BTC HIVE owns, I dug through its most recent investor presentation. 

HIVE reported roughly 2,131 BTC on its balance sheet as of Feb 2024. With BTC’s price 

hovering around $70,000, this means that HIVE’s holdings are worth roughly $149,170,000. 

Here are a few other takeaways from HIVE’s presentation:

• HIVE mined 801 Bitcoin in Q2 2024
• HIVE mines around 9 Bitcoin per day
• Low shareholder dilution: HIVE ranks the lowest among other bitcoin miners like Riot (Nasdaq: RIOT) or Argo (Nasdaq: ARBK) in terms of how much it dilutes the value of shares over time. The same goes for administrative expenses.
• HIVE maintained a positive operating margin during BTC’s last bear market.

The Value of HIVE’s BTC 

Some quick math reveals that HIVE mines roughly $630,000 worth of Bitcoin every day (9 BTC per day at $70,000 per coin). This is roughly 270 coins per month, for a value of $18,900,000 per month or $56,700,000 per quarter. 

But, HIVE doesn’t earn a 100% profit on the BTC that it mines. HIVE pays roughly $22,607 per BTC that it produces. So, if HIVE mines roughly 800 BTC per quarter then it will have to pay a total of $18,085,600. In total, HIVE can expect to earn $38.61 million each quarter in BTC value ($56,700,000 worth of BTC – $18,085,600 in expenses).

HIVE’s market capitalization is currently close to $500m, which seems pretty low considering its revenue and the value of its BTC holdings. If the price of BTC stays consistent at $70,000 then HIVE will mine another $115.83m worth of BTC this year (Since it’s already April, I’m only counting three more quarters).

This $115.83m, combined with its current holdings of $149.17m, means that HIVE will have close to $265m in BTC holdings alone by the end of the year – roughly half of its existing market cap.

Of course, this assumes that BTC’s price stays the same over the coming year – which is a bold assumption. BTC’s price could easily slide back down to $30,000, which is where it sat for most of 2023. But, BTC’s price could easily double in the coming year. This would cause HIVE’s holdings to skyrocket.

Why is HIVE Stock Down?

One thing that I found interesting about HIVE stock is that its price has fallen significantly during a Bitcoin rally. This seems contradictory. Usually, the stocks of Bitcoin-centric companies will rise (or fall) in tandem with Bitcoin’s price. So far through 2024, Bitcoin is up nearly 60%. Bitcoin-centric companies like MicroStrategy and Coinbase (COIN) are up 175% and 77%, respectively. But, HIVE stock is down over 25%. What’s going on there? 

I did a lot of digging trying to answer this question. But, I couldn’t really come up with anything tangible. Even Yahoo Finance put together an article on why HIVE stock is tumbling. But, it didn’t say anything concrete.

My best guess would be that the market just tends to undervalue the value of BTC when companies hold it on their balance sheet. This goes for most companies that buy BTC. But, it seems to be especially true for smaller cap companies, like HIVE. 

The market likely views HIVE as a mining company whose revenue is growing modestly and has valued it appropriately. But, the market is failing to price in the value of HIVE’s BTC holdings – which should be worth roughly half of the company’s market cap by year-end. One thing is for sure: the market never assumes that BTC’s price will rise over the long run…which it has a strong history of doing.

Should You Buy HIVE Stock?

It might be worth buying HIVE stock since the value of its BTC holdings appears to be undervalued by the market. Plus, buying more Bitcoin is definitely part of HIVE’s strategy moving forward. HIVE’s Executive Chairman, Frank Holmes recently had to say:

“This continuing increase aligns with the Company’s strategy to strive to HODL, anticipating heightened demand for Bitcoin due to the adoption of Bitcoin as an alternative asset class as witnessed with stunning fund flows into the recent launching of Bitcoin ETFs. We believe as we approach the Halving event in April, the short-term volatility will remain high, and investors must be aware that HIVE like our peers are usually correlated with Bitcoin but with a greater amplitude in price volatility.”

In other words, the company is bullish on BTC, so it plans to buy/mine more BTC. 

That said, if you’re bullish on Bitcoin then I’d honestly just recommend buying BTC instead of HIVE stock. There might be an investment thesis where the value of HIVE stock’s BTC holdings is undervalued. But, the easier way to play this is to just buy BTC, instead of waiting for HIVE stock to follow BTC’s movements.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post HIVE Stock: The Next Microstrategy? appeared first on Investment U.

In this article, I’ll break down why you should avoid buying a Bitcoin ETF at all costs – as well as my thoughts on why BTC is set to rally.

3 Reasons Why You Should Never Buy a Bitcoin ETF

They Charge Unnecessary Fees

A Bitcoin ETF is essentially just a financial tool that tracks the spot price of Bitcoin while charging you a fee to do so. But…you can easily do this yourself by opening a crypto wallet and buying Bitcoin. So, why would you pay another company to do it for you?

According to Nerdwallet, most Bitcoin ETFs charge between 0.5% to 1.5%. Now, you might think that these financial institutions are using some sort of secret strategy when tracking Bitcoin’s price. Right? Like, maybe they have a special crypto wallet that uses ultra-safe encryption technology. Nope. According to Nerdwallet, most Bitcoin ETFs on the market use Coinbase (Nasdaq: COIN). Again, this is easily something that you could do yourself – for free.

I guess it’s true that some BTC ETFs invest in futures while others invest in Bitcoin mining stocks. So, buying a Bitcoin ETF for the sake of tracking all of the BTC mining stocks might make a bit of sense. But, if you’re solely interested in getting exposure to Bitcoin then it makes zero sense to buy an ETF.

Now, I know what you’re thinking. Some of these ETFs have really cool names, like the “Bitwise Bitcoin Strategy Optimum Roll ETF”: (NYSEARCA: BITC). With a name like that, this ETF must have a unique trading strategy that outperforms Bitcoin, right?

Wrong.

Bitcoin ETFs Underperform BTC

I checked the 6-month returns of Nerdwallet’s Top 10 Best ETFs and, guess what? All 10 of them have underperformed Bitcoin’s return over the same period.

I know this is a bit of a small sample size. After all, a 6-month window isn’t very long. There’s a chance that these funds will go on to outperform BTC over the next 1 year, 5 years, or 10 years. But, I doubt it. Over the past 6 months, most of these ETFs weren’t even close to mirroring BTC’s return. They have all underperformed BTC by 20-30% or even more in some cases.

So, again, you’re essentially paying a company a fee to underperform the return of Bitcoin. On top of that, buying a Bitcoin ETF goes against everything that Bitcoin stands for.

A Bitcoin ETF is Against Bitcoin’s Ethos

If you’re a fan of Bitcoin and the decentralized finance movement then you know that bitcoin is all about people regaining control over their money. Right now, money is controlled by the government, central banks, and consumer banks. 

1. The government takes your money through taxation
2. The central bank devalues your money through inflation
3. Consumer banks determine what you can or can’t do with your money.

Whenever you want to do something with your money, one of these three entities is standing by to make your life difficult.

Didn’t pay enough taxes? Here’s the government ready to audit you and demand all of your financial information.

Saving money so that you can buy a home? Well, the Fed raised interest rates so now you can’t afford the mortgage.

Want to send money to a friend? The bank says you have to wait until Monday.

The main purpose of Bitcoin is to solve issues in our financial system and eliminate financial middlemen. In doing so, Bitcoin gives you more control over your finances. If you buy a Bitcoin ETF then you’re just perpetuating the system that already exists. Bitcoin might not be a perfect solution to all of the problems I listed above. But, it’s the best alternative we have if we want to regain control over our money.

That said, even though I’m opposed to buying a Bitcoin ETF, I still think buying Bitcoin is a great idea. Here’s why.

Bitcoin’s Pending Surge

TLDR: Trillions of dollars will soon be invested in BTC = prices goes up.

The SEC’s decision to allow Bitcoin ETFs has ushered in a new age for the cryptocurrency industry. With this new rule, Bitcoin is no longer a fringe asset that’s used by drug dealers to launder money. Instead, BTC is officially a legitimate financial product that’s certified and approved by the world’s biggest financial institutions. This is a massive context switch.

During its initial announcement, the SEC said that it approved 11 applications for BTC ETFs. Over the coming years, I’m sure that dozens more funds will enter the industry. This means that wealth advisors around the world are starting to advise their clients to buy Bitcoin and other crypto assets. This will trigger a massive influx of money into BTC.

Visual Capitalist estimates that there are 59.4m millionaires in the world. These people make up just 1.1% of the world’s population. But, they account for roughly 45.8% of the world’s wealth – which is approximately $210 trillion. The overwhelming majority of these millionaires do not manage their own wealth. When you think of the average millionaire, you conjure up images of:

1. Trust fund kids whose family owns businesses, real estate, or similar assets
2. Famous celebrities like actors, athletes, singers)
3. High-paid professionals like doctors, lawyers, CEOs

Do you really think any of these personalities are sitting around managing their own wealth? Absolutely not.

Imagine The Rock balancing his portfolio each quarter. Or, America’s top brain surgeon buying shares of $VOO on Robinhood (Nasdaq: HOOD). Not happening. For the most part, wealthy millionaires have someone else manage their money. Usually, a family office or similar high-end wealth management service. I’m talking about the types of investment firms that require $50 million in assets just to schedule a meeting.

Over the coming years, these private family offices will start to recommend BTC ETFs to their clients. This will result in trillions of dollars of privately managed wealth pouring into Bitcoin – likely resulting in a massive spike in price. Even if just 1% of privately managed wealth is invented in Bitcoin, it will result in $2.1 trillion flowing into BTC over the coming years.

I feel especially strong about this, thanks to the great wealth transfer.

Will BTC Replace Gold?

I have a very strong conviction that Bitcoin will eventually replace gold as the world’s default “safe haven” investment. I say this because America is currently undergoing the greatest wealth transfer of all time. 

Over the next two decades, Baby Boomers will transfer $84 trillion to their kids (Mainly, Millennials and Gen Z). This means that many younger generations will suddenly find themselves responsible for investing the family fortune. And, they’ll likely show a stronger preference for Bitcoin and crypto than their parents did.

Most advisors recommend keeping between 5% to 10% of your portfolio in gold. These talking points have been repeated so often that few people dare to question them. However, I think this mentality will gradually start to change over time. After all, how many younger investors are really interested in buying gold? For the most part, they only do it because “it’s what you do.”

But, you can’t spend gold. It barely increases in price (compared to other assets). You can’t even really use it, outside of jewelry or fashion pieces. BTC, on the other hand, can be easily transferred, spent, sent to friends/family, and has proven to increase dramatically in value over time. For these reasons and more, I believe that BTC will eventually replace gold as the default “safe haven” investment.

Anyway, I hope that you’ve found this article valuable when it comes to learning why you should never buy a Bitcoin ETF. If you’re interested in reading more, please subscribe below to get alerted of new articles.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post Read This Before Buying any Bitcoin ETF appeared first on Investment U.