Top 4 Crypto-related Stocks You Should Consider

crypto stocks 2022

Satoshi Nakamoto invented Bitcoin to create a decentralized network that allowed for secure transactions without borders and excluded third parties.

While Bitcoin and other cryptocurrency are frequently used for transactions they are still considered assets that can be used to trade and invest.

Investors can buy a fraction of crypto and make money directly. There is another way to gain investment exposure to crypto, though.

One of the easiest is to buy stock in a company that has a financial stake for the future of blockchain or cryptocurrency technology.

There are many different types of crypto-related stocks. There are many companies that are involved in mining Bitcoin and other altcoins. Others are simply buying cryptocurrency and keeping it in their accounts.

Companies that provide financial services for crypto include accessing crypto markets, receiving crypto for payment, and providing the equipment necessary for mining.

Here are the top cryptocurrency stocks on the market.

MicroStrategy

Microstrategy has a strong reputation in the business intelligence and analytics industry. Their platform is used by different companies to offer best-in-class enterprise analysis.

There are many notable clients, including Accenture, 3M and Amazon. The company’s growing bitcoin treasury is what makes it the most prominent in the crypto sector.

The current Bitcoin hype is one reason why Microstrategy stock prices have performed so well in 2020-2021. Microstrategy stock soared by more than 360% last year and now it is up over 80%.

MicroStrategy stated that it bought Bitcoin in 2020 to make it its “primary Treasury reserve asset.” Michael Saylor, MicroStrategy’s CEO, said that Bitcoin would have better performance and greater rewards than cash due to a flood of stimulus money that occurred during the coronavirus pandemic.

Microstrategy disclosed in October that it currently has 114,000 Bitcoins, which are worth more than 60 billion dollars. Saylor stated that they are keen to increase this figure in the future.

MicroStrategy is both a software and crypto company because of its large investments in Bitcoin. Analysts warn that the company borrowed money to increase its Bitcoin holdings. This adds uncertainty to the company’s quarterly balance sheets.

Others criticize MicroStrategy for its deep dive into Bitcoin. This could distract from its core analytics business.

Marathon Digital Holdings

Marathon Digital Holdings started out as a patent-holding firm, but is now considered a crypto company because of its purchases Bitcoin and mining equipment.

The company’s goal is to build the largest North American mining operation with the lowest energy cost.

Marathon’s Q3 2021 Report stated that the company’s total revenue increased by 76% quarter to quarter and more than 6,000% year over year.

Marathon Digital Holdings produced more than 1,250 self-mined Bitcoins in Q3, a 91% increase. The company also had more than 7,000 bitcoins at September 30, 2021.

Marathon Digital Holdings continues to grow its mining fleet, which currently consists of 19,395 active miner. The company announced in August 2021 that it would purchase another 30,000 Bitmain miners.

Marathon stakeholders have experienced over 1,400% growth in the last year, and +400% Year-to-date.

Nvidia

Nvidia, one of the world’s largest semiconductor companies, is also a major designer of GPUs. GPUs are not only used to power high-end video games, but also allow for computing-intensive applications like data centers and artificial Intelligence.

Nvidia does not deal directly with cryptocurrency, but its GPUs can be used by altcoin miners.

In 2017-2018, Nvidia stock prices rose due to the cryptocurrency boom. This was because crypto miners scrambled for GPUs.

The GPU is still a key piece of hardware needed to mine crypto assets. Nvidia has also benefited from the crypto boom in 2020-2021.

Many cryptocurrencies have reached new highs in 2021. Mining has also regained its popularity, causing a shortage of GPUs worldwide .

Nvidia has made crypto so important that it launched a special line of chips to mine crypto coins in early 2021.

Nvidia stock prices show a +130% year-to-date performance and +116% for 2020.

Nvidia is currently trying to buy ARM Holdings. This acquisition will likely cement Nvidia’s position as a leader of chip technology.

Square

Square, a digital payments and financial services company, introduced Bitcoin trading in 2017 via its Cash App consumer-facing app.

Cash app users can sell and buy Bitcoins and exchange them with each other. Square reports that the company has more than 8,000 bitcoins in its balance sheet as of Q3 2021.

Square’s Cash App isn’t the only source for Bitcoin revenue. Square offers a range of services to encourage the use of Bitcoin by its users.

Square also supports crypto development and has a team called Square Crypto Developers that works on open-source crypto projects. This will increase Bitcoin adoption.

Although Bitcoin was not a significant contributor to Square’s financial results, it has been a strong revenue generator in 2020 and 2021.

Square announced earlier this year that it would be developing bitcoin mining hardware after witnessing a significant increase in crypto-related payment transactions.

Many cryptocurrency stocks aren’t purely a play on the crypto market. Investors can use these assets to diversify their portfolios.

Companies that support cryptocurrencies may experience wild swings in their revenue.

Traditional companies are increasingly embracing crypto as a means to increase payment options for users and a place of long-term value.

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