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8 Best Bitcoin & Crypto Stocks That You Should Know in 2024
Beginner
2024-08-06 | 5m
In the first half of 2024, the
global crypto market cap
soared past $2 trillion, making it one of the most popular investment choices. As cryptocurrencies continue to reshape our economic landscape, the big question for investors is: How can you get in on the action? While the thrill of buying and holding cryptocurrencies is tempting, it comes with its own set of complexities and risks. That's where cryptocurrency stocks come in—a smart, accessible way to dive into the booming crypto market without the hassle of managing digital assets. For those who favor the traditional stock market, these stocks offer a unique opportunity to benefit from the explosive growth of cryptocurrencies like Bitcoin.
What Are Bitcoin & Cryptocurrency Stocks?
Understanding the Basics
Before diving into cryptocurrency stocks, let's break down the basics.
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies are decentralized and operate on a technology called blockchain. This technology ensures that transactions are secure, transparent, and immutable.
Bitcoin, introduced in 2009, is the most well-known cryptocurrency, but there are thousands of others, including
Ethereum,
Litecoin, and
Dogecoin.
Stocks are shares in the ownership of a company. When you buy a stock, you own a portion of that company and may benefit from its growth and profits. Stocks are traded on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ. When a company performs well, its stock price usually increases, allowing investors to make money by selling their shares at a higher price than they paid.
Cryptocurrency stocks are shares of companies that are directly or indirectly involved in the cryptocurrency and blockchain industry. These companies may not issue cryptocurrencies themselves, but their operations are significantly influenced by the rise and fall of the cryptocurrency market. Investing in these stocks allows individuals to gain exposure to the cryptocurrency sector without directly buying or holding digital currencies.
Types of Cryptocurrency Stocks
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Mining Companies: These companies focus on the process of mining cryptocurrencies. Mining involves using powerful computers to solve complex mathematical problems, which validate transactions on the blockchain. Successful miners are rewarded with new coins.
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Technology Providers: These companies supply the hardware and software necessary for cryptocurrency operations. This can include everything from specialized mining equipment to blockchain technology solutions.
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Investment Firms: Some companies, like Grayscale, offer investment products that provide exposure to cryptocurrencies without the need for direct ownership. These firms manage large portfolios of digital assets and allow investors to buy shares representing a portion of these holdings.
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Companies with Significant Bitcoin Holdings: Certain companies have made headlines by holding substantial amounts of Bitcoin as part of their corporate treasury strategy. MicroStrategy is a notable example, as it has invested billions of dollars in Bitcoin.
8 Bitcoin-Related Stocks to Know in 2024
1. MicroStrategy Inc. (NASDAQ: MSTR)
MicroStrategy Inc., founded in 1989 and headquartered in Tysons Corner, Virginia, is a business intelligence (BI) company increasingly becoming known for its substantial Bitcoin holdings. Under the leadership of CEO Michael Saylor, the company has adopted an aggressive strategy to acquire and hold Bitcoin as its primary treasury reserve asset.
As of July 2024, the company holds
226,500 Bitcoins, purchased at an aggregate cost of approximately
$8.3 billion, or
$36,821 per Bitcoin. This makes MicroStrategy Inc. the largest corporate holder of Bitcoin and the world’s first bitcoin development company. In addition, the company announced a
10-for-1 stock split to make its shares more accessible with the split taking effect on August 7, 2024. MicroStrategy continues to innovate in business intelligence, integrating generative AI into its HyperIntelligence platform, demonstrating its commitment to enhancing both its technological and financial strategies.
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is known for its high-performance graphics processing units (GPUs). These GPUs are critical for various applications, including gaming, professional visualization, and increasingly, artificial intelligence (AI). In recent years, NVIDIA's innovations in AI have significantly boosted its market presence. For example, the company's data center segment alone reported a revenue of
$22.6 billion in the first quarter of fiscal year 2025, contributing to a record total quarterly revenue of
$26.0 billion.
At the SIGGRAPH 2024 conference, NVIDIA CEO Jensen Huang announced several groundbreaking technologies. These included the fVDB framework for creating AI-ready virtual worlds and NVIDIA NIM microservices, which enhance generative AI capabilities. Furthermore, NVIDIA performed a
10-for-1 stock split in June 2024 to make its shares more affordable and accessible to a broader range of investors. This move, along with a
150% increase in its quarterly cash dividend, reflects the company's robust financial health and commitment to shareholder value. Analysts remain confident in NVIDIA's continued growth, especially with its strong focus on AI and computing innovation.
Marathon Digital Holdings Inc., established in 2010 and based in Fort Lauderdale, Florida, is a leading Bitcoin mining company. The company is known for using sustainable energy sources for its operations. As of July 2024, Marathon holds over
20,000 Bitcoins, having increased its mining power significantly to 31.5 exahash per second (EH/s),. This makes them one of the leading Bitcoin miners in terms of operational hash rate.
In the second quarter of 2024, Marathon was proactive in expanding its mining capacity and even purchased $100 million worth of Bitcoin from the open market. Additionally, to make its shares more accessible, the company executed a
10-for-1 stock split in June 2024, reflecting its commitment to growth and innovation in the cryptocurrency sector.
Riot Platforms Inc., founded in 2000 and headquartered in Castle Rock, Colorado, is a major player in the Bitcoin mining industry. The company focuses on building and operating large-scale, vertically integrated Bitcoin mining facilities in the United States. As of June 2024, Riot achieved a deployed hash rate capacity of 22.0 exahashes per second (EH/s), surpassing their Q2 target of 21.4 EH/s.
In the second quarter of 2024, Riot Platforms reported a total revenue of
$70 million. This includes
$55.8 million from Bitcoin mining, an increase from
$49.7 million in the same period the previous year. Following the acquisition of Block Mining Inc. in Kentucky, Riot raised its hash rate guidance for 2024 to 36 EH/s, with plans to reach 56 EH/s by the end of 2025.
Block Inc., formerly known as Square Inc., is a financial technology company founded in 2009 by Jack Dorsey and Jim McKelvey. The company is headquartered in San Francisco, California. Block Inc. operates multiple business segments, including Square, Cash App, TIDAL, and TBD, providing a range of services from payment processing to financial services and music streaming.
In the second quarter of 2024, Block Inc. reported a total net revenue of
$6.16 billion, reflecting an 11% increase year-over-year. The company has introduced a
Bitcoin dollar-cost averaging (DCA) purchase program, committing to invest 10% of its gross profit from Bitcoin products into Bitcoin purchases throughout 2024. This move underscores Block's belief in Bitcoin as a tool for economic empowerment and its strategic role in the company's financial ecosystem.
HIVE Digital Technologies Ltd., founded in 2017, was the first cryptocurrency mining company publicly traded on the TSX Venture Exchange. The company, headquartered in Vancouver, Canada, focuses on green energy-powered blockchain technology and AI infrastructure. HIVE operates data centers in Canada, Sweden, and Iceland, utilizing renewable energy sources such as geothermal and hydroelectric power for its mining operations. As of July 2024, HIVE produced
116 Bitcoins in that month alone, increasing its total Bitcoin holdings by 2% to
2,533 Bitcoins.
Recently, HIVE announced plans to build a 100-megawatt Bitcoin mining facility in Paraguay, marking its first venture into the country. This new facility is expected to more than double HIVE's mining hashrate from 5.6 exahashes per second (EH/s) to 12.1 EH/s upon completion. The site will be powered by the Itaipu Hydroelectric Power Plant, which provides surplus electricity, making it an attractive option for Bitcoin mining.
The Grayscale Bitcoin Trust (GBTC) is a financial product that offers investors a way to gain exposure to Bitcoin without directly buying, storing, or managing the cryptocurrency. Launched in 2013 by Grayscale Investments, GBTC was initially available only to accredited investors through private placements. In 2015, it began trading publicly on OTC markets, allowing broader investor access. In January 2024, GBTC was converted into an
exchange-traded fund (ETF) and listed on the NYSE Arca, enhancing its liquidity and accessibiliy. The trust is designed to reflect the value of Bitcoin held, minus expenses, providing a simplified and regulated way for investors to participate in the Bitcoin market.
As of the latest updates, GBTC manages over $20 billion in assets and holds approximately
630,000 Bitcoin, accounting for about 3% of the total Bitcoin supply. Grayscale also announced plans for the initial distribution of shares for the new Grayscale Bitcoin Mini Trust (BTC), with a 1:1 ratio of GBTC shares to BTC shares.
Canaan Inc., founded in 2013 and headquartered in Singapore, is a leading technology company specializing in the design and production of high-performance computing solutions, particularly ASICs for Bitcoin mining. The company is well-regarded for its Avalon series of Bitcoin miners and has been publicly traded on the NASDAQ since its IPO in 2019. As of the latest data, Canaan holds cryptocurrency assets worth approximately $90.2 million, consisting primarily of
1,271.7 Bitcoins.
How to buy Crypto Stocks?
To buy crypto stocks, follow these steps:
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Choose a Brokerage: Open an account with a brokerage that offers crypto stocks.
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Deposit Funds: Transfer funds into your brokerage account via bank transfer or other accepted methods.
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Select Crypto Stocks: Research and pick stocks involved in the cryptocurrency industry.
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Place an Order: Use your brokerage account to place a buy order. You can opt for market orders (immediate purchase) or limit orders (purchase at a specific price).
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Monitor Investments: Keep track of your investments and stay updated with market trends and news in the cryptocurrency sector.
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Secure Your Account: Ensure your brokerage account is protected with security measures like two-factor authentication (2FA).
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Diversify Your Portfolio: Spread your investments across different asset types to manage risk effectively.
Is Crypto Stock a Good Investment?
Investing in crypto stocks can be attractive due to the potential for high growth and diversification benefits. The cryptocurrency market has experienced substantial growth, with companies in this sector, such as those offering blockchain technology or involved in cryptocurrency mining, potentially providing significant returns. Including crypto stocks in an investment portfolio can also enhance diversification, as they represent a different asset class that can perform independently from traditional markets. Additionally, investing in this sector provides exposure to innovative technologies within digital finance and blockchain applications, which are rapidly evolving and expanding.
However, every investment comes with its risks. Crypto stocks can carry high volatility and regulatory uncertainty. Prices can fluctuate dramatically based on market sentiment, regulatory news, and adoption trends. The evolving regulatory environment can significantly impact these investments, and market sentiment often drives prices more than fundamental values. Thus, while the potential rewards are substantial, investing in crypto stocks requires careful consideration and a high tolerance for risk.
Conclusion
As we look ahead, the synergy between traditional finance and cryptocurrency continues to evolve, promising new opportunities and challenges. By staying informed and adaptable, investors can position themselves to reap the benefits of this transformative era. In essence, crypto stocks represent more than just an investment—they symbolize a stake in the future of finance, where digital and traditional paradigms meet.
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