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Riot, IBKR, and NVIDIA: The Stocks Positioned for Crypto’s Next Big Move
Trump’s Pro-Crypto Stance Drives Bitcoin to New Highs—What It Means for Investors
Crypto’s Bright Future: Stocks to Buy as Trump Fosters Industry Growth
Bitcoin’s Surge: How Trump’s Executive Order Sparks Stock Gains
For some time now, major crypto companies have raised concerns that U.S. banking regulators have been advising banks to exercise caution in lending to the crypto industry, without directly instructing them to avoid lending. While companies like Coinbase Global, Inc. (COIN) have taken legal action against regulators, it’s been Donald Trump’s more favorable stance towards the sector that has driven much of the recent rally in crypto-exposed stocks. Companies like Riot Platforms, Inc. (RIOT), Interactive Brokers Group, Inc. (IBKR), and NVIDIA Corporation (NVDA) are poised to benefit from these developments.
The crypto industry has long argued that U.S. regulations are outdated and unsuitable for the unique nature of cryptocurrencies. It has called on regulators and lawmakers to draft new rules to provide clarity and support for the market. Last Thursday, Trump signed an executive order aimed at expanding the potential for cryptocurrencies. The order established a working group to propose new regulations for digital assets and explore the creation of a national cryptocurrency stockpile. It also called for the protection of banking services for crypto companies, sparking significant excitement within the sector.
Under the previous Democrat-led administration, there were concerns over the potential for tighter regulations on cryptocurrencies. In contrast, the Trump administration has embraced a pro-crypto stance, which has led to growing optimism in the market. Much of this optimism has already been priced in, but with the new policies starting to take shape, Bitcoin (BTC) reached an all-time high of $109,071 on January 23. However, following some profit-taking, the price has since retreated to around $105,000.
Regulatory uncertainty has always been a major deterrent for investors in the crypto space, but with the Trump administration signaling support for the industry, there is growing confidence that institutions will back crypto in the coming years. Investors can look at stocks like the following for potential gains:
Our Stock Picks:
Riot Platforms (RIOT): A leading Bitcoin mining and data center hosting company in North America, Riot has an expected earnings growth rate of 6.2% for the next year. The company has a return on equity (ROE) of 2.2% and a net margin of 16.7%. Riot currently holds a Zacks Rank #2 (Buy).
Interactive Brokers Group (IBKR): A global automated electronic broker facilitating crypto trading, Interactive Brokers has an expected earnings growth rate of 5.1% for the current year. The company has a ROE of 5% and a net margin of 9.3%. It carries a Zacks Rank #1 (Strong Buy).
NVIDIA Corporation (NVDA): Known for designing graphics processing units (GPUs) used in crypto data centers, NVIDIA has an expected earnings growth rate of 126.2% for the current year. With an impressive ROE of 114.8% and a net margin of 55.7%, NVIDIA holds a Zacks Rank #2 (Buy).
As the Trump administration’s policies evolve, these stocks offer a strong potential for investors looking to gain exposure to the crypto space.
