Cryptocurrency represents a form of digital or virtual currency that employs cryptography for enhanced security. Unlike conventional government-issued currencies, cryptocurrencies are decentralized and function through blockchain technology.
This technology ensures that transactions are secure, transparent, and immutable. Bitcoin, introduced in 2009, remains the most recognized cryptocurrency, but thousands of others, including Ethereum, Litecoin, and Dogecoin, have also emerged.
Owning stocks means holding shares in a company, giving you partial ownership. Stocks are traded on exchanges like the New York Stock Exchange (NYSE) or NASDAQ, and as a company prospers, its stock value typically rises, enabling shareholders to profit by selling at a higher price.
Owning stocks means holding shares in a company, giving you partial ownership. Stocks are traded on exchanges like the New York Stock Exchange (NYSE) or NASDAQ, and as a company prospers, its stock value typically rises, enabling shareholders to profit by selling at a higher price.
Cryptocurrency stocks are shares in companies that are significantly impacted by the cryptocurrency and blockchain industries. These companies may not issue digital currencies themselves, but their business operations are closely tied to the fluctuations in the cryptocurrency market.
By investing in these stocks, individuals can gain exposure to the cryptocurrency sector without directly purchasing or holding digital currencies.
Categories of Cryptocurrency Stocks
- Mining Companies: These businesses specialize in mining cryptocurrencies, a process that uses powerful computers to solve complex mathematical problems that validate blockchain transactions. Miners are rewarded with new coins for their efforts.
- Technology Providers: These companies supply essential hardware and software for cryptocurrency operations, including specialized mining equipment and blockchain solutions.
- Investment Firms: Companies like Grayscale offer investment products that provide exposure to cryptocurrencies without requiring direct ownership. These firms manage large portfolios of digital assets, allowing investors to buy shares representing a portion of these holdings.
- Companies with Significant Bitcoin Holdings: Some companies have garnered attention by holding large amounts of Bitcoin as part of their corporate treasury strategy, with MicroStrategy being a prime example.
8 Noteworthy Bitcoin-Related Stocks in 2024
1. MicroStrategy Inc. (NASDAQ: MSTR)
Founded in 1989 and headquartered in Tysons Corner, Virginia, MicroStrategy Inc. is a business intelligence firm increasingly known for its substantial Bitcoin holdings.Under CEO Michael Saylor, the company has aggressively acquired Bitcoin as its primary treasury reserve asset, holding 226,500 Bitcoins as of July 2024.
Additionally, the company announced a 10-for-1 stock split, effective August 7, 2024, to make its shares more accessible.
MicroStrategy continues to innovate in business intelligence, incorporating generative AI into its HyperIntelligence platform.
2. NVIDIA Corp. (NASDAQ: NVDA)
Established in 1993 in Santa Clara, California, NVIDIA Corporation is renowned for its high-performance graphics processing units (GPUs), essential for gaming, professional visualization, and AI applications.The company’s innovations in AI have bolstered its market presence, with its data center segment alone generating $22.6 billion in Q1 fiscal year 2025.
NVIDIA’s 10-for-1 stock split in June 2024 and a 150% increase in its quarterly cash dividend highlight its robust financial health.
3. Marathon Digital Holdings Inc. (NASDAQ: MARA)
Marathon Digital Holdings, based in Fort Lauderdale, Florida, and founded in 2010, is a leader in Bitcoin mining, utilizing sustainable energy sources.As of July 2024, the company holds over 20,000 Bitcoins and has significantly increased its mining power to 31.5 exahash per second (EH/s).
Marathon also executed a 10-for-1 stock split in June 2024, reflecting its commitment to growth and innovation in the cryptocurrency space.
4. Riot Platforms Inc. (NASDAQ: RIOT)
Founded in 2000 and headquartered in Castle Rock, Colorado, Riot Platforms is a key player in the Bitcoin mining industry, operating large-scale mining facilities in the U.S.As of June 2024, Riot reached a hash rate capacity of 22.0 EH/s and reported $70 million in revenue for Q2 2024. The company aims to increase its hash rate to 56 EH/s by the end of 2025.
5. Block Inc. (NASDAQ: SQ)
Block Inc., formerly Square Inc., was founded in 2009 and is headquartered in San Francisco, California. The company operates various segments, including Square, Cash App, TIDAL, and TBD.In Q2 2024, Block Inc. reported a net revenue of $6.16 billion and introduced a Bitcoin dollar-cost averaging purchase program, committing 10% of its gross profit from Bitcoin products to Bitcoin purchases throughout 2024.
6. HIVE Digital Technologies Ltd. (NASDAQ: HIVE)
HIVE Digital Technologies, founded in 2017 and headquartered in Vancouver, Canada, was the first publicly traded cryptocurrency mining company on the TSX Venture Exchange.The company focuses on green energy-powered blockchain technology and AI infrastructure, with operations in Canada, Sweden, and Iceland.
In July 2024, HIVE announced plans for a 100-megawatt Bitcoin mining facility in Paraguay, expected to double its mining hashrate.
7. Grayscale Bitcoin Trust (NYSEARCA: GBTC)
The Grayscale Bitcoin Trust (GBTC) offers investors exposure to Bitcoin without directly purchasing the cryptocurrency.Launched in 2013 by Grayscale Investments, GBTC was converted into an exchange-traded fund (ETF) in January 2024 and now trades on the NYSE Arca.
As of the latest updates, GBTC manages over $20 billion in assets and holds approximately 630,000 Bitcoins.
8. Canaan Inc. (NASDAQ: CAN)
Founded in 2013 and headquartered in Singapore, Canaan Inc. is a leading technology company specializing in high-performance computing solutions, particularly ASICs for Bitcoin mining.The company is recognized for its Avalon series of Bitcoin miners and has been publicly traded on NASDAQ since its 2019 IPO.
Steps to Buy Crypto Stocks
- Choose a Brokerage: Open an account with a brokerage that offers crypto stocks.
- Deposit Funds: Transfer funds into your brokerage account.
- Select Crypto Stocks: Research and select stocks within the cryptocurrency industry.
- Place an Order: Use your account to place a buy order—market or limit.
- Monitor Investments: Keep track of your investments and stay informed about market trends.
- Secure Your Account: Protect your account with security measures like two-factor authentication (2FA).
- Diversify Your Portfolio: Spread investments across different asset types to manage risk effectively.
Is Investing in Crypto Stocks Worth It?
Investing in crypto stocks can offer high growth potential and diversification. The cryptocurrency market has experienced significant growth, with companies in this sector offering substantial returns.Including crypto stocks in a portfolio provides exposure to innovative digital finance technologies.
However, these stocks can be volatile and subject to regulatory uncertainty, so careful consideration and a high-risk tolerance are essential.
Conclusion
The intersection of traditional finance and cryptocurrency continues to evolve, presenting new opportunities and challenges. Staying informed and adaptable can help investors capitalize on this dynamic era.Investing in crypto stocks not only represents an opportunity for profit but also a stake in the future of finance, where digital and traditional systems converge.
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