Bitcoin was THE big success story of 2020.
The cryptocurrency cruised to a gain of more than 340%.
And the bitcoin boom is going to continue well into 2021 as the crypto finally goes mainstream.
But it’s still tough for many people to buy the digital currency…
Let alone stomach its high price (at $30,000) or its huge price swings.
Today, I’ve got three “backdoor” plays on bitcoin with big upside potential this year.
Best of all, you can execute these right out of your regular trading account.
The Pick and Shovels of the New Digital Gold Rush
In case you’re unfamiliar, there are two main ways to get bitcoin.
You can buy it on the open market… just like you can gold, silver or any other commodity.
Or you can “mine” it using a computer that runs complicated math problems to unlock the coins.
But here’s your backdoor path to bitcoin…
I’ve found a handful of stocks that are tightly correlated to bitcoin’s price.
That means when bitcoin goes up or down, these stocks “mirror” the movement.
The first two stocks on my list are related to bitcoin mining…
There are thousands of crypto miners around the world running computers 24/7, with new miners coming online every day.
And miners are spending billions purchasing high-end computer chips and memory to carry out the mining.
That’s why I love Advanced Micro Devices Inc. (AMD) and Micron Technology Inc. (MU).
Backdoor Bitcoin Play #1: Advanced Micro Devices Inc. (AMD)
AMD is one of the world’s largest computer chip makers.
It specializes in premium CPUs and graphics cards — both of which are flying off the shelves and into crypto computers.
Shares nearly doubled in 2020.
They’re up more than 4,100% in the last five years…
And the stock has surged right alongside bitcoin’s boom over much of that time frame.
But here’s why I like the stock right now…
After breaking out to a new all-time high in October, the stock pulled back to support at $92 (which was previously resistance.)
And I believe the stock is gearing up for another big move higher.
My price target on the stock is $110 — which is the stock’s late 2020 trading range of almost $20 added to the $92 breakout level.
My next pick is another booming breakout play…
Backdoor Bitcoin Play #2: Micron Technology Inc. (MU)
Micron, like AMD, is a leader in the tech hardware industry.
The company makes low-power, high-performance RAM chips. And they’re perfect for demanding bitcoin mining computers.
This year, earnings are expected to nearly double.
And ahead of Micron’s first quarterly report this week, the stock just broke out to its highest level in over 20 years.
For the last three years, Micron’s stock has traded between $64 and $32 — a range of $32.
On the stock’s breakout, I see the stock surging to $100 this year.
(Add the $32 range to MU’s breakout point of $64 and you get $96, which is just below my target.)
That’s an upside of more than 30% from the stock’s current price.
Backdoor Bitcoin Play #3: PayPal Holdings Inc. (PYPL)
As bitcoin goes mainstream, more merchants around the world are accepting it as a legit currency.
And the companies that facilitate these payments are going to make BANK.
Enter Paypal Holdings Inc. (PYPL), a dominant player in the online payments space.
It announced in October that it would allow customers to buy and sell crypto through their digital wallets.
And the crypto could fund their purchases at Paypal’s 26 million merchants worldwide.
Paypal shares have nearly tripled since March. And the bitcoin news fueled a breakout to a new all-time high in December.
As you can see, through much of the second half of 2020… Paypal traded in a tight range between $220 and $180.
And on the breakout, I see the shares surging to $260. (That’s the stock’s $40 range added to $220 — where Paypal broke out.)
On their own, all three of these companies are thriving leaders in their respective industries.
But because these stocks are directly linked to bitcoin… you’re tapping into explosive upside that few other stocks have.
It’s the best of both worlds and the biggest bang for your bitcoin buck.