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Buy These 5 Crypto-Centric Stocks as September Rate Cut Hopes Rise
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Key Takeaways
Tepid August jobs data boosted odds of a September Fed rate cut, aiding crypto-linked stocks.
Robinhood, Interactive Brokers, NVIDIA, Cipher Mining and Riot Platforms highlighted as buys.
Laws like the GENIUS ACT and the pending CLARITY ACT and the Anti-CBDC Surveillance State Act are positives.
The expectation of the first interest rate cut in 2025 has skyrocketed after the release of tepid nonfarm payrolls data for August. The addition of a mere 22,000 jobs last month was neither too hot nor too cool.
This will pave the way for the Fed to initiate a rate cut in its next FOMC meeting scheduled on Sept. 16-17. At the same time, the chance of a near-term recession will not arise. The CME FedWatch interest rate derivative tool currently shows a 100% probability of 25% cut in the benchmark lending rate.
A low-interest rate regime will be beneficial for high-growth sectors like technology, consumer discretionary and cryptocurrency. At this stage, it will be prudent to invest in crypto-centric stocks with a favorable Zacks Rank.
On July 18, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) seeking to regulate the stablecoin market of the nation. Stablecoins are digital assets that are built to maintain a stable value relative to a “stable” asset like the US dollar. Giant retailers such as Walmart and Amazon are considering launching their own stablecoins to reduce dependence on traditional payment networks like plastic money.
Two major cryptocurrency-related regulations still pending are The CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act aims to define when crypto is a commodity or a security.
The CLARITY Act would establish a regulatory framework for digital assets other than stablecoins. This will allow crypto exchanges to register with the Commodity Futures Trading Commission thereby reducing the Securities and Exchange Commission’s regulation of digital currencies.
The Anti-CBDC Surveillance State Act aims to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) directly to individuals or indirectly through intermediaries. The bill also prohibits the Federal Reserve from developing or issuing a CBDC without explicit authorization from Congress.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Robinhood Markets Inc.
Robinhood Markets operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Given the higher retail participation in markets, HOOD’s trading revenues are expected to improve in the near future. Buyouts and product diversification efforts to become a leader in the active trader market will likely bolster its financials.
HOOD’s vertical integration will likely enhance its product velocity. Further, a robust liquidity position will help HOOD in sustainable share repurchases. HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets has an expected revenue and earnings growth rate of 35.8% and 42.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 30 days.
Interactive Brokers Group Inc.
Zacks Rank #1 Interactive Brokers Group is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
IBKR’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance its emerging market customers and global footprint, along with relatively high rates, are expected to continue aiding revenues. IBKR’s initiatives to expand its product suite and the reach of its services will support financials.
Interactive Brokers Group has an expected revenue and earnings growth rate of 8.8% and 11.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.7% in the past 60 days.
NVIDIA Corp.
NVIDIA is a semiconductor industry giant and one of the biggest success stories since 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets. NVDA currently carries a Zacks Rank #2 (Buy).
NVIDIA has an expected revenue and earnings growth rate of 56.3% and 48.5%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 30 days.
Cipher Mining Inc.
Zacks Rank #2 Cipher Mining is an industrial-scale bitcoin mining company. CIFR also offers high-performance computing (HPC) services, such as artificial intelligence. CIFR continues to develop its pipeline of power capacity at high-quality data center sites, either for bitcoin mining or HPC.
Cipher Mining has an expected revenue and earnings growth rate of 77.9% and -129%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 30 days.
Riot Platforms Inc.
Riot Platforms operates as a bitcoin mining company in North America. RIOT operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering. RIOT currently carries a Zacks Rank #3 (Hold).
RIOT also provides co-location services for institutional-scale bitcoin mining companies, critical infrastructure and workforce for institutional-scale miners to deploy and operate their mines, data centers, and maintain/manage computing capacity.
RIOT Platforms has an expected revenue and earnings growth rate of 76.7% and -297%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 60 days.
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Buy These 5 Crypto-Centric Stocks as September Rate Cut Hopes Rise
Key Takeaways
The expectation of the first interest rate cut in 2025 has skyrocketed after the release of tepid nonfarm payrolls data for August. The addition of a mere 22,000 jobs last month was neither too hot nor too cool.
This will pave the way for the Fed to initiate a rate cut in its next FOMC meeting scheduled on Sept. 16-17. At the same time, the chance of a near-term recession will not arise. The CME FedWatch interest rate derivative tool currently shows a 100% probability of 25% cut in the benchmark lending rate.
A low-interest rate regime will be beneficial for high-growth sectors like technology, consumer discretionary and cryptocurrency. At this stage, it will be prudent to invest in crypto-centric stocks with a favorable Zacks Rank.
Five such stocks are: Robinhood Markets Inc. (HOOD - Free Report) , Interactive Brokers Group Inc. (IBKR - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Cipher Mining Inc. (CIFR - Free Report) and Riot Platforms Inc. (RIOT - Free Report) .
Regulatory Tailwinds
On July 18, President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) seeking to regulate the stablecoin market of the nation. Stablecoins are digital assets that are built to maintain a stable value relative to a “stable” asset like the US dollar. Giant retailers such as Walmart and Amazon are considering launching their own stablecoins to reduce dependence on traditional payment networks like plastic money.
Two major cryptocurrency-related regulations still pending are The CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act aims to define when crypto is a commodity or a security.
The CLARITY Act would establish a regulatory framework for digital assets other than stablecoins. This will allow crypto exchanges to register with the Commodity Futures Trading Commission thereby reducing the Securities and Exchange Commission’s regulation of digital currencies.
The Anti-CBDC Surveillance State Act aims to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) directly to individuals or indirectly through intermediaries. The bill also prohibits the Federal Reserve from developing or issuing a CBDC without explicit authorization from Congress.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Robinhood Markets Inc.
Robinhood Markets operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Given the higher retail participation in markets, HOOD’s trading revenues are expected to improve in the near future. Buyouts and product diversification efforts to become a leader in the active trader market will likely bolster its financials.
HOOD’s vertical integration will likely enhance its product velocity. Further, a robust liquidity position will help HOOD in sustainable share repurchases. HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets has an expected revenue and earnings growth rate of 35.8% and 42.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 30 days.
Interactive Brokers Group Inc.
Zacks Rank #1 Interactive Brokers Group is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
IBKR’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance its emerging market customers and global footprint, along with relatively high rates, are expected to continue aiding revenues. IBKR’s initiatives to expand its product suite and the reach of its services will support financials.
Interactive Brokers Group has an expected revenue and earnings growth rate of 8.8% and 11.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.7% in the past 60 days.
NVIDIA Corp.
NVIDIA is a semiconductor industry giant and one of the biggest success stories since 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets. NVDA currently carries a Zacks Rank #2 (Buy).
NVIDIA has an expected revenue and earnings growth rate of 56.3% and 48.5%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 30 days.
Cipher Mining Inc.
Zacks Rank #2 Cipher Mining is an industrial-scale bitcoin mining company. CIFR also offers high-performance computing (HPC) services, such as artificial intelligence. CIFR continues to develop its pipeline of power capacity at high-quality data center sites, either for bitcoin mining or HPC.
Cipher Mining has an expected revenue and earnings growth rate of 77.9% and -129%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 30 days.
Riot Platforms Inc.
Riot Platforms operates as a bitcoin mining company in North America. RIOT operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering. RIOT currently carries a Zacks Rank #3 (Hold).
RIOT also provides co-location services for institutional-scale bitcoin mining companies, critical infrastructure and workforce for institutional-scale miners to deploy and operate their mines, data centers, and maintain/manage computing capacity.
RIOT Platforms has an expected revenue and earnings growth rate of 76.7% and -297%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 60 days.