Cryptocurrency began with Bitcoin (BTC) in 2009. Today, the market has grown exponentially to encompass a dizzying array of coins, blockchains, crypto exchanges, and payment processors.
During the crypto bull run of 2021, a handful of public companies made significant cryptocurrency investments. It was a record-breaking year for crypto, but most of those gains were wiped out in 2022. Federal Reserve rate increases and a series of crises—from TerraUSD to FTX—weighed heavily on the industry.
The crises underscored the vulnerability of crypto stocks to market downturns. Nevertheless, large public companies continue to expand their investments in cryptocurrency. When the industry pulls out of its doldrums, the best crypto stocks could earn risk-tolerant investors a handsome return. Here are seven stocks with ties to crypto that could thrive in the years to come.
Coinbase Global Inc. (COIN)
Coinbase remains a leading cryptocurrency exchange in the United States, with a robust platform supporting a wide range of digital assets. Despite facing regulatory scrutiny, Coinbase has continued to innovate, launching new products and services aimed at both retail and institutional investors.
MicroStrategy Inc. (MSTR)
MicroStrategy, under CEO Michael Saylor, has been one of the most vocal proponents of Bitcoin, holding a significant portion of its corporate treasury in the cryptocurrency. The company’s commitment to Bitcoin has made its stock highly correlated with BTC’s price movements.
Square Inc. (SQ)
Now known as Block Inc., Square has integrated Bitcoin into its business model, offering BTC transactions through its Cash App. The company’s decentralized finance (DeFi) initiatives and investments in blockchain technology are positioning it as a key player in the crypto space.
Nvidia Corporation (NVDA)
Nvidia, a leading manufacturer of graphics processing units (GPUs), has benefited from the cryptocurrency mining boom. Its GPUs are highly sought after by miners of various cryptocurrencies, driving significant demand for its products.
Riot Platforms Inc. (RIOT)
Riot Platforms is one of the largest publicly traded Bitcoin mining companies in the U.S. It has aggressively expanded its mining operations and continues to increase its hash rate capacity, making it a significant player in the Bitcoin mining industry.
PayPal Holdings Inc. (PYPL)
PayPal has embraced cryptocurrencies, allowing users to buy, sell, and hold digital assets on its platform. The company has also launched new features for merchants to accept crypto payments, enhancing its ecosystem and driving broader crypto adoption.
Marathon Digital Holdings Inc. (MARA)
Marathon Digital is another prominent Bitcoin mining company that has scaled up its operations to become one of the largest in North America. The company’s focus on increasing its hash rate and energy efficiency positions it well for future growth.
As the cryptocurrency market continues to evolve, these companies are likely to remain at the forefront, leveraging their crypto investments and innovations to drive growth. While investing in crypto stocks carries inherent risks, the potential rewards can be substantial for those who navigate the market carefully.
