Crypto Companies Amid Earning Season: Numbers to Look Out for (Opinion)

Stock traders and investors who actively manage their portfolio are busy anticipating and scanning the quarterly filings every earnings season, beginning about two weeks after the end of each annual quarter.

Crypto stocks, shares in companies built around cryptocurrency, or having high exposure to the digital asset market are no different.

Crypto Companies to Release Earnings Reports

As required by the SEC, corporations with listed stocks publish earnings reports about the previous quarter, projections of future earnings, and guidance about the company’s overall situation and position in the market.

Investopedia explains why it’s important:

“This is a very active time in the market as participants (analysts, traders, and investors) review the earnings reports, which may affect their positions on or in a company.”

Some of the biggest crypto stocks are suffering massive capitulations amid the bearish market that’s settled down cryptocurrency prices since many coins posted extravagant all-time high prices in Nov 2021.

Crypto-Related Public Companies. Source: TradingView

As you can see from the chart, major crypto stocks, MSTR, MARA, COIN, RIOT, and VYGVF, are all down from deep to very deep in the double digits of negative ROI at the one year view.

Shown in blue for comparison is the total crypto market cap for coin prices on liquid crypto exchange markets. One silver lining is Silvergate Capital (NYSE:SI), up nearly 18% for the past year and recovering better than its peers from the cryptocurrency industry’s downturn.

Meanwhile, the S&P 500 has posted its worst start to a year since 1942. Depending on your view of the Bitcoin stocks correlation thesis versus the Bitcoin global strategic macro hedge view, that could be a headwind or a tailwind for crypto prices.

But of course, shares in the incorporated firms that deal with crypto in some way or another are more like high-tech industry NASDAQ stocks regardless. If you’re long on the prospects of these corporate players in the industry, now or soon might be the time to buy crypto stocks.

Year-to-date, most big crypto stocks have slid further than either the total crypto market cap or the NASDAQ Composite. (NASDAQ is down some 21% YTD.)

Wall Street Analysts: Time to Buy Crypto Stocks

Marathon Digital

This week, Marathon Digital (NASDAQ:MARA) will kick off crypto earnings season for mining companies, with an earnings report scheduled to be published on Wednesday.

It will be showcasing a new fleet of 70,000 new Bitmain S19 Antminers the company recently purchased and took delivery of.

Jefferies analyst Jonathan Petersen has a buy rating for Marathon Digital stock, but he and other analysts want to see how the mining company will house and secure the rigs.

Riot Blockchain

Without any announcement from Riot Blockchain, Inc. (NASDAQ:RIOT), Zack’s Investment Research estimates, based on past earnings releases, that it will publish earnings by May 16.

Riot Blockchain purchased 42,000 S19 miners for $138.5 million in April and is planning to build a massive electrical substation in Texas, to be completed by Summer 2023.

A tipster at Tip Ranks said Riot Blockchain stock seems undervalued, pointing to a Strong Buy consensus out of four Wall Street analyst ratings in the past three months.

Coinbase Global

Coinbase Global stock (NASDAQ:COIN) suffered a double blow in the first quarter. In addition to falling digital asset prices across the market, Coinbase’s expansion into India was abruptly halted by tough regulatory hurdles.

Barron’s remarks COIN stock is suffering from the same headwinds that have clobbered commission-free trading app Robinhood’s shares as retail investors have been more cautious this year. As COIN sinks to a record low, a JP Morgan analyst hinted about a surprise earnings miss for Q1.

But Coinbase shareholders should not necessarily panic.

While the share price for Coinbase stock is below half its IPO price, Wall Street is still bullish on the exchange over the next year. 12 buy, 2 hold, and 2 sell ratings over the past three months give the stock a Moderate Buy analyst rating consensus. Overall, they project a 100% upside for the crypto stock over the next 12 months.