January 2024 was a pivotal moment in the history of Bitcoin and the crypto market when the US SEC approved spot Bitcoin ETFs. This move drove a significant interest in Bitcoin and cryptos among both institutional and retail investors, taking digital assets one step closer to mainstream adoption. While cryptos may not hit the traditional stock markets worldwide, there are several crypto-related stocks that you could still invest in and trade on the stock market.
Crypto-related stocks encompass shares of companies that, while not exclusively in the crypto sector, have significant exposure to or investment in cryptocurrencies and blockchain technology. This includes firms like PayPal and MicroStrategy, which hold substantial cryptocurrency assets or facilitate crypto transactions. Similarly, companies like Robinhood and SoFi Technologies offer platforms for trading crypto assets alongside traditional financial instruments. Additionally, companies like Nvidia and Tesla share a correlation with the crypto market as their performance influences associated cryptocurrencies, like the AI crypto projects in the case of NVIDIA or Bitcoin and Dogecoin, in the case of Tesla.
Additionally, crypto-curious traditional investors could also look out for IPOs (Initial Public Offerings) of crypto-related companies set to hit the markets in the near future. An Initial Public Offering (IPO) is the process by which a private company goes public by offering its shares to the public for the first time. These IPOs serve as a bridge for traditional investors to gain exposure to the growth potential of the cryptocurrency and blockchain space without direct investment in digital assets.
The publicly listed companies featured in this article are closely correlated with the crypto market and their performance could impact some sections of the crypto market.
Why Invest in Crypto-Related Stocks and IPOs?
Investing in crypto-related stocks and IPOs allows for participation in the financial upside of the cryptocurrency boom without dealing with the complexities and security concerns of holding digital assets directly. Publicly listed companies like PayPal and Block Inc. are well-established in their respective fields and offer a more traditional investment route into the fast-evolving crypto space. Their performance can be closely correlated with the crypto market trends, providing an indirect exposure to the sector's volatility and growth potential.
Top Crypto Stocks to Watch
If you are a crypto-savvy investor, here are some of the best crypto-related stocks to include in your equity portfolio:
Robinhood
HOOD stock performance over the past year | Source: TradingView
Robinhood Markets, Inc. (HOOD) went public on July 29, 2021, aiming to democratize finance for all. Its platform enables users to invest in stocks, ETFs, options, and cryptocurrencies, among other financial products. As of 2023, Robinhood reported revenue of $1.87 billion, reflecting a significant increase from the previous year, though it also reported losses. The company's stock has seen fluctuations, with a 52-week range between $7.91 and $19.42, indicating volatility but also growth potential as it expands services like cryptocurrency trading. This direct involvement in cryptocurrencies and its platform's ability to trade these assets links Robinhood's stock performance closely with the crypto market.
Robinhood has significantly embedded itself in the cryptocurrency trading space, allowing its users to trade Bitcoin among other popular cryptocurrencies. Its association with the crypto market has been so strong that the company's brand became almost synonymous with crypto in 2021. The company's performance, including its stock (HOOD), can be influenced by the overall sentiment and fluctuations in the cryptocurrency market.
PayPal
PYPL stock performance over the past year | Source: TradingView
PayPal Holdings, Inc. (PYPL) went public on February 15, 2002, establishing itself as a key player in the digital payments industry. As of 2023, PayPal has continued to show robust financial performance with a revenue of $29.77 billion, marking an 8.19% increase from the previous year and net earnings of $4.25 billion. The company's stock has experienced fluctuations within a 52-week range between $50.25 and $77.95, reflecting both the volatile nature of the market and the impact of its strategic decisions on its financial health.
PayPal allows users to buy, hold, and sell various cryptocurrencies directly from their PayPal account, bridging the gap between traditional finance and the crypto ecosystem. This extensive involvement in digital transactions, including facilitating cryptocurrency payments, closely ties PayPal's stock performance to the broader dynamics of the online payment and cryptocurrency markets. PayPal’s financial performance also depends on changes in the crypto market that could impact user engagement and transaction volumes on PayPal's platform. PayPal is also closely associated with the crypto market following the launch of its own stablecoin, PayPal USD (PYUSD).
Here’s all you need to know about PayPal’s stablecoin PYUSD.
Block (Formerly Square)
SQ stock performance over the past year | Source: TradingView
Block, Inc. (formerly known as Square, Inc.), went public on November 19, 2015, and is traded under the ticker symbol SQ. The company has evolved into a comprehensive financial services and technology firm, offering a range of products, including payment processing solutions, financial services through Cash App, and more. As of early 2024, Block has shown a market cap of approximately $51.77 billion, indicating its substantial growth and presence in the financial technology sector. The stock has had a 52-week range between $38.85 and $87.52, showcasing volatility but also significant growth potential. Block's financial performance reflects its innovative approach to integrating commerce and financial products, making it a notable entity in the tech and financial sectors. Its close correlation with the cryptocurrency market is underscored by its diverse financial services, including Cash App's ability to buy, sell, and hold cryptocurrencies, which links its stock performance to the broader dynamics of the cryptocurrency markets.
Block Inc. has a significant correlation with the cryptocurrency market, especially through its Cash App platform, which enables users to buy, sell, and transfer Bitcoin. This service directly links Block's financial ecosystem to the volatile dynamics of the cryptocurrency market. Moreover, the company's strategic investment in Bitcoin, placing approximately 1% of its total assets into the cryptocurrency, underscores its belief in Bitcoin's long-term value and further ties its financial performance to the fluctuations of the cryptocurrency market.
MicroStrategy
MSTR stock performance over the past year | Source: TradingView
MicroStrategy Incorporated went public on June 11, 1998, and is known for its substantial investments in Bitcoin. The company has a market cap of approximately $26.24 billion, with a revenue of $496.26 million over the last twelve months. The stock has experienced significant fluctuations, with a 52-week range between $230.72 and $1,815.00, reflecting its aggressive cryptocurrency investment strategy. MicroStrategy's unique position in the market, combining enterprise analytics software services with a strong focus on Bitcoin, ties its stock performance closely to the cryptocurrency's price movements.
MicroStrategy has made substantial investments in Bitcoin, holding a significant amount of the cryptocurrency on its balance sheet. This direct financial exposure means that MicroStrategy's stock performance is closely tied to the price movements of Bitcoin, making the company's financial health and stock price reactive to the volatile nature of the cryptocurrency market.
Here’s a deep dive into MicroStrategy’s Bitcoin holdings and purchase history.
SoFi Technologies
SOFI stock performance over the past year | Source: TradingView
SoFi Technologies, Inc. (SOFI) became a publicly traded company through a merger with a special purpose acquisition company (SPAC), Social Capital Hedosophia Holdings Corp. V, in June 2021. This strategic move was designed to propel SoFi into the public markets, providing it with a platform to further its mission of helping people achieve financial independence. SoFi, founded in 2011, has grown rapidly, expanding its suite of financial products and services across the United States, Latin America, and Canada. The company operates through Lending, Technology Platform, and Financial Services segments, offering an integrated platform that enables members to borrow, save, spend, invest, and protect their money. In 2023, SoFi reported a revenue of $2.12 billion, indicating a significant growth of 34.91% compared to the previous year, despite recording losses of -$300.74 million.
SoFi's integration with Galileo, a leading technology platform, has been pivotal in its growth, allowing it to offer a comprehensive range of services not only to its members but also to the customers of Galileo's clients. The company's pursuit of a national bank charter, following preliminary approval from the U.S. Office of the Comptroller of the Currency (OCC) in October 2020, signifies its ambition to lower its cost of funds and support its growth strategy. Under the leadership of CEO Anthony Noto, SoFi aims to continue its mission of providing financial services that enable people to achieve their ambitions.
SoFi Technologies offers its users the ability to trade cryptocurrencies alongside traditional investments. This inclusion of crypto trading services ties SoFi's market performance to the cryptocurrency space, as interest in and the performance of crypto assets could influence user engagement and trading volumes on SoFi's platform.
Coinbase
COIN stock performance over the past year | Source: TradingView
Coinbase Global, Inc. (COIN) commenced its journey as a publicly traded entity on April 14, 2021, through a direct listing on the NASDAQ stock exchange. The company has established itself as a prominent platform in the financial infrastructure and technology sector for the crypto economy, both in the United States and internationally. It offers a comprehensive suite of services for consumers to manage their financial accounts in the crypto economy and a marketplace for crypto asset transactions for institutions. Moreover, it enables developers to build crypto products and securely accept crypto assets as payment. Founded in 2012 and headquartered in Wilmington, Delaware, Coinbase has made significant strides in the crypto exchange domain, underscored by a market capitalization of $62.24 billion as of the latest data.
Financially, Coinbase reported revenue of $3.11 billion over the trailing twelve months, with a net income of $94.75 million, reflecting its robust position in the cryptocurrency exchange space. The stock has seen a 52-week price range between $46.43 and $276.38, showcasing the volatile yet potentially rewarding nature of investing in crypto-related businesses. Analysts currently hold a "Buy" rating on COIN stock, though the 12-month price target suggests a significant variance in expectations.
Coinbase, as a dedicated cryptocurrency exchange, has its performance directly correlated with the cryptocurrency market. The platform's revenue is significantly influenced by trading volumes and the overall health of the crypto market, making its financial performance and stock price closely aligned with the ups and downs of cryptocurrency values.
Marathon Digital
MARA stock performance over the past year | Source: TradingView
Marathon Digital Holdings, Inc. (MARA), initially known as Marathon Patent Group, Inc., rebranded itself in February 2021. The company, incorporated in 2010 and headquartered in Fort Lauderdale, Florida, is a significant player in the digital asset technology sector, primarily focusing on mining digital assets within the Bitcoin ecosystem in the United States. Currently, Marathon Digital Holdings is one of North America's largest and most sustainably operated Bitcoin miners. The company's operations convert energy into economic value by processing Bitcoin transactions, generating newly minted Bitcoins, and maintaining the security and up-to-dateness of Bitcoin's distributed ledger.
Financially, Marathon Digital has demonstrated robust performance, with a "Buy" consensus from analysts. The company has a 12-month stock price forecast suggesting a slight decrease from its latest price, indicating analysts' expectations of its future market performance. Recent strategic moves by the company include entering a definitive agreement to acquire a 200-megawatt Bitcoin mining data center adjacent to a wind farm, aiming to expand its mining operations and portfolio significantly.
Marathon Digital focuses on mining digital assets, primarily Bitcoin. The company's performance is inherently linked to the cryptocurrency market, especially the price of Bitcoin, as the profitability of mining activities is closely tied to the value of the mined cryptocurrency.
Tesla
TSLA stock performance over the past year | Source: TradingView
Tesla, Inc. (TSLA) went public on June 29, 2010, marking its entry into the NASDAQ stock exchange. Since then, Tesla has grown significantly, expanding its product line beyond electric vehicles to include energy generation and storage systems. With a focus on accelerating the world's transition to sustainable energy, Tesla has become a leader in both the automotive and clean energy sectors. As of 2023, Tesla reported a revenue of $96.77 billion, an 18.80% increase from the previous year, showcasing its strong financial performance and market presence.
Tesla's stock has seen substantial growth and volatility over the years, reflecting the dynamic nature of the tech and automotive industries, as well as investor sentiment towards green technology and Elon Musk's leadership. In the most recent trading period, Tesla's market capitalization stood at approximately $559.44 billion, with a 52-week range of $152.37 to $299.29, highlighting the fluctuations and investor interest in the stock. The company's performance is closely watched by investors and analysts, with the current consensus rating being a "Hold" and a 12-month price target suggesting a potential upside from its recent price.
Tesla has made investments in Bitcoin and accepted it as a payment method for its products in the past. However, it has also shown a willingness to reverse this decision based on environmental concerns related to Bitcoin mining. These actions indicate a connection between Tesla's financial strategies and the cryptocurrency market, albeit a more indirect link compared to companies like Coinbase or MicroStrategy.
NVIDIA
NVDA stock performance over the past year | Source: TradingView
NVIDIA Corporation (NVDA) launched its initial public offering (IPO) on January 22, 1999, and has since become a leader in the technology sector, particularly in graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market. NVIDIA has experienced significant growth, with its revenue reaching $60.92 billion in 2023, an impressive increase of 125.85% compared to the previous year. The company's earnings also surged to $29.76 billion, reflecting a growth of 581.32%. The stock has had a 52-week range between $258.50 and $974.00, showcasing its volatile yet strong performance in the market. Analysts have given NVIDIA a "Strong Buy" rating, indicating optimism about its future performance despite a slight projected decrease in its stock price.
Nvidia produces GPUs that are widely used in cryptocurrency mining operations. Although the company's broader business model encompasses various sectors beyond crypto, the demand for its GPUs for mining has, at times, been influenced by the cryptocurrency market, creating a connection between Nvidia's performance and the health of the crypto market. Closely related to artificial intelligence, NVIDIA’s stock performance closely impacts the overall AI sector of the crypto market.
Metaplanet Inc.
Metaplanet Inc (3350) stock performance over the past year | Source: TradingView
Metaplanet initially focused on managing budget hotels but has shifted its business to become involved in the Web3 space, which deals with the development of a decentralized internet. They've made a significant investment in Bitcoin, putting over $6 million into it with help from key players in the cryptocurrency world like Sora Ventures and Mark Yusko of Morgan Creek Capital. This decision aims to reduce the company's reliance on the Japanese yen, which has faced challenges due to Japan's prolonged period of low interest rates. By incorporating Bitcoin into its financial strategy, Metaplanet is exploring its potential for both protecting against inflation and potentially increasing its value over time.
Following the announcement of their Bitcoin investment, Metaplanet's stock price soared by almost 90%, indicating strong investor interest in businesses that embrace cryptocurrency. This strategy mirrors that of MicroStrategy, an American company that began accumulating Bitcoin in 2020 and whose stock price movements have closely aligned with the value of Bitcoin. Metaplanet's initiative also seeks to provide a tax-efficient way for Japanese investors to engage with the cryptocurrency market, given the country's strict regulations on crypto earnings. This approach not only positions Metaplanet within the growing cryptocurrency sector but also highlights its innovative steps to adapt to the evolving financial landscape.
Upcoming Crypto IPOs to Look Forward to
In addition to the above list of established crypto stocks, here’s a list of IPOs coming up that are also closely correlated with the crypto market:
Reddit's IPO saw the company and its top executives selling 22 million shares at $34 each, hitting a market valuation of $5.4 billion, with a fully diluted valuation closer to $6.4 billion. This marked a decrease from a $10 billion valuation in 2021. Reddit's IPO is significant as it represents a major public offering in the 2024 market landscape amidst fluctuating market conditions. The company's correlation with the crypto market is highlighted by its plans to expand platform functionalities and incorporate cryptocurrencies like Bitcoin, Ether, and Polygon as payment methods, signaling a closer integration with digital currencies and their ecosystems.
Amid the IPO hype, Reddit's Community Points like MOON (r/CryptoCurrency) and BRICK (r/FortNiteBR) have drawn attention. These ERC-20 tokens reward users for community contributions, with MOON serving the crypto subreddit and BRICK the Fortnite subreddit. Their popularity surged with Reddit’s Terms of Use update, allowing trading of these points. Both tokens can be traded, used for subreddit memberships, or voting on governance polls, showcasing innovative blockchain use in fostering online community engagement. This surge reflects investor enthusiasm as Reddit's IPO, reportedly oversubscribed, seems poised to hit a $6.5 billion valuation. Despite initial skepticism due to Reddit's historical non-profitability and content moderation approach, the impending IPO has sparked bullish momentum for these community reward tokens amidst a broader crypto market correction.
Telegram
The upcoming Telegram IPO has garnered significant interest, with the company reportedly planning to go public within the next two years. This move is closely watched by the crypto market, largely because of Telegram's connection to the blockchain and crypto sector, particularly through Toncoin (TON). Telegram is contemplating an IPO with a potential valuation between $30-50 billion, eyeing a direct listing on major stock exchanges like Nasdaq or the Hong Kong Stock Exchange. The interest in Telegram's IPO is amplified by its correlation with the crypto market, particularly through its endorsement of the Ton Network, making TON its blockchain of choice. This endorsement has led to a dramatic increase in TON's value, with the market cap rising by $9.5 billion to $15.5 billion in just two days, showcasing the profound impact of Telegram's moves on the crypto market. While Telegram’s founder Pavel Durov has confirmed his interest in taking the company public, he has not provided any timeline for the Telegram IPO as of March 2024.
Toncoin's value surge is directly linked to Telegram's IPO considerations, highlighting the intertwined future of Telegram and the crypto world. Telegram's evolution within the crypto ecosystem, particularly its association with TON, suggests a significant impact on TON's value and the broader crypto market. This relationship underscores the platform's ambition to go beyond a messaging app, aiming to become a major player in the technological landscape, focusing on incorporating advanced features such as AI-based chatbots. This strategic move towards an IPO reflects Telegram's broader ambition to transform into a tech giant within the crypto and blockchain space, promising an exciting future for investors and users alike. The anticipation around Telegram's IPO and its potential implications for the crypto market, especially regarding TON, positions Telegram as a unique entity bridging the communication and crypto sectors.
Bitkub
Thailand's leading cryptocurrency exchange, Bitkub Online, is gearing up for an initial public offering (IPO) in 2025. This comes after the company hinted at going public in a 2023 shareholder letter without specifying a timeframe. Bitkub Capital, the owner of the exchange, is currently hiring financial advisors for the IPO process.
The IPO is expected to value Bitkub Online at around 6 billion baht ($165 million). This decision comes amidst a surge in demand for crypto trading in Thailand, with the number of active accounts reaching new highs. However, Bitkub faces competition from players like Binance Thailand and regulatory hurdles after the SEC challenged a previous acquisition deal and sued the company for alleged trading volume manipulation.
Circle
Circle, the company behind USDC, one of the leading stablecoins by market capitalization, has confidentially filed for an IPO, indicating a potential public offering on the horizon. USDC is closely correlated with the crypto market due to its role as a stablecoin pegged to the U.S. dollar. It provides a stable medium of exchange and store of value within the volatile cryptocurrency market. The stablecoin's market capitalization stands at approximately $31.81 billion, showcasing its significant impact and widespread adoption within the crypto ecosystem.
The decision to pursue an IPO comes after Circle's plans to go public via a special purpose acquisition company (SPAC) were abandoned. Initially, Circle entered a SPAC merger deal with Concord Acquisition Corp in July 2021, which valued the company at around $9 billion. However, the deal was later scrapped, which might have been influenced by various internal and external factors, including the volatile nature of the crypto market. This move to file for an IPO directly instead may reflect Circle's continued interest in accessing public markets, offering a more traditional route to going public. Circle filed a confidential draft S-1 document with the US SEC in January 2024, stating its interest in selling shares to the public. Circle’s IPO could potentially happen following the SEC’s review, but the timeline remains uncertain at the time of writing.
Circle's tie to the crypto market, particularly through USDC, signifies that developments surrounding its IPO could lead to volatility for cryptocurrencies closely interlinked with the stablecoin and the broader market. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which often see liquidity and stability enhanced by stablecoins like USDC, could experience price movements in response to investor sentiment and regulatory developments tied to Circle's IPO. Additionally, Circle's previous attempt to list through a SPAC and its eventual shift towards a traditional IPO route underlines the company's strategic adjustments in response to changing market conditions and regulatory landscapes.
Given Circle's significant role in the crypto market through USDC and its various initiatives to enhance transparency and stability in the digital currency space, crypto, and traditional financial markets highly anticipate the upcoming IPO. As Circle progresses towards a public listing, the crypto community and investors will closely watch for any updates, which could influence market dynamics and the strategic direction of stablecoins within the broader financial ecosystem.
Blockchain.com
Blockchain.com, a significant player in the cryptocurrency exchange and block explorer market, is reportedly in the process of interviewing banks for an initial public offering (IPO) that could take place as soon as this year. The company has rapidly ascended in the ranks of the crypto world, achieving a remarkable valuation of $14 billion in its latest Series D funding round. This strategic move towards an IPO underlines Blockchain.com's robust growth and its central role in the cryptocurrency ecosystem, further cementing its status among the giants in the industry. Blockchain.com’s co-founder Nicolas Cary last mentioned the company’s interest in going public in September 2023, but stated that it would move forward with its plans only when market conditions are conducive. There is no official confirmation on a timeline for the Blockchain.com IPO at the time of writing.
The potential Blockchain.com IPO is of considerable interest to the crypto market due to the company's foundational services, including offering one of the first Bitcoin block explorers and a widely used crypto wallet. With over 82 million wallets created, 37 million verified users, and more than $1 trillion in transactions processed, Blockchain.com's platform has been integral to the adoption and use of cryptocurrency worldwide. This substantial footprint in the crypto space not only signifies the company's influence but also suggests that its public listing could have widespread implications for market dynamics, echoing the precedent set by Coinbase's successful IPO.
How to Evaluate Crypto-Related Stocks and IPOs
Evaluating crypto-related stocks and IPOs involves a multi-faceted approach, similar to assessing any other investment, but with additional considerations unique to the volatile and rapidly evolving nature of the cryptocurrency and blockchain sectors. Here are some key factors to consider when evaluating such investments:
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Understand the company's revenue generation methods, main products or services, and its place within the broader cryptocurrency ecosystem. Assess how it stands out in its provision of technology or services and its target market's size and demand.
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Evaluate the experience and track record of the management team in both the crypto sector and traditional industries. Additionally, consider the regulatory environment of the countries where the company operates, as this can significantly impact its ability to scale and operate efficiently.
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Analyze available financial statements to assess the company's growth, profitability, and financial stability. Compare its valuation with its financial health and growth prospects. Also, consider the company's competitive advantage in the market and its growth potential compared to existing and new entrants.
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Investigate the company's technological foundation, focusing on innovation, security measures, and any history of breaches or vulnerabilities. The presence of strategic partnerships and a vibrant ecosystem can also indicate the company's credibility and potential for growth.
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Pay attention to market sentiment and the company's momentum, which can influence short-term investment returns. Finally, consider how investing in the company fits within your broader investment strategy, emphasizing the importance of diversification and risk management in the volatile crypto market.
Always conduct your own thorough research and consider consulting with a financial advisor before making investment decisions in the cryptocurrency and blockchain sectors.
Conclusion
Crypto-related stocks and IPOs offer a compelling opportunity for investors to engage with the cryptocurrency and blockchain industry through more traditional investment vehicles. By carefully selecting stocks of companies with strategic investments in the crypto space or considering participation in IPOs of firms like Circle or Blockchain.com, investors can potentially capture the growth of the cryptocurrency market. However, due diligence, a clear understanding of each company's crypto-related activities, and a cautious approach to risk management are essential for navigating this evolving investment landscape.
Further Reading
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MicroStrategy’s Bitcoin Holdings and Purchase History: A Strategic Overview
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The Rise of Real World Asset (RWA) Tokenization: Unlocking Asset Liquidity