The cryptocurrencies quickly rose to prominence as one of the most popular investment vehicles over the past decade. They gained traction first among retail traders in 2017 and then from institutional investors.
The crypto space, once a niche for bedroom programmers, has grown to become a vibrant financial sector with more than $2 trillion in market capitalization. Investors continue to be interested in it.
Although crypto assets have been proven to be highly valuable, volatility is a major concern for institutional investors. Any investor can purchase cryptocurrencies to profit from their increasing value. However, it is possible to diversify and gain from the uptake of all things blockchain-related by investing in established companies.
Investors have exposure to an investment vehicle that is low in correlation to volatile price swings in the crypto market.
We have listed the top digital asset companies that are publicly traded. This is for both retail and institutional investors.
The April 2018 Coinbase direct listing on Nasdaq was a landmark moment in the history of the cryptocurrency market. Coinbase, which boasts the largest volume of crypto trading for a cryptocurrency exchange in the United States made its debut on Nasdaq in April as a publicly traded company. Its valuation is close to $100 billion. Coinbase decided to list directly, rather than the traditional initial public offering.
Coinbase was founded by Fred Ersham in 2012 and Brian Armstrong. It offers crypto trading services for more than 40,000,000 retail users and approximately 7,000 institutions around the world. Coinbase’s main revenue source has been transaction fees from its crypto exchange. However, Coinbase plans to expand its services to include a debit card that allows users to easily spend digital assets. Coinbase offers cloud-based digital asset custody, asset loan services and data monitoring for digital assets on blockchain.
Coinbase launches a browser extension to support Coinbase Wallet
Microstrategy, a software company, has more than 40% invested in Bitcoin (BTC). Over the past year, Microstrategy has increased its Bitcoin stash by making accumulative purchases of Bitcoin in excess of $5 billion at current price.
Microstrategy is a cryptocurrency giant that has more than 100,000 BTC. Michael Saylor, the CEO of Microstrategy, is a Bitcoin evangelist who has been vocal in his defense of the company’s decision to invest in crypto.
MicroStrategy recently sold $1 billion of its stock holdings to fund the acquisition of more Bitcoin. Microstrategy has seen its stock price rise by over 400% since the announcement of its Bitcoin debut.
Similar: MicroStrategy has added 9K BTC to its inventory last quarter. Its stash now totals $7 billion
Riot Blockchain, a U.S.-based Bitcoin miner and publicly traded company, uses a variety of specialized machines called “application-specific integrated circuits” to mine Bitcoin. The Bitcoin mining company recently expanded its business by purchasing a North American Bitcoin hosting facility called Whinstone USA.
Jason Les, CEO of Riot Blockchain, stated that Riot was “extremely well-positioned with Whinstone’s preeminent architecture and best-in class construction, development, and operations organization, Riot can increase the scale and extent of its operations.”
According to Whinstone, Riot Blockchain will be able to manage its Bitcoin mining energy costs using Whinstone’s energy-management strategy. This will allow Riot Blockchain to access reliable and responsive power to support the Bitcoin network.
Riot Blockchain receives Bitmain’s mining machines and hosts over 35,000 Antminers. This gives Riot Blockchain a hash rate capacity exceeding 3.8 EH/s.
Similar: Industrial Bitcoin mining gives new life to tiny Texan towns
PayPal stock isn’t just a crypto play. The company also opened its doors for digital currencies. Customers with personal accounts can now buy, sell, and hold a variety of cryptocurrencies, including Bitcoin. PayPal customers can check out with crypto while the company is still testing the idea of allowing crypto on the platform.
PayPal’s adoption and use of crypto by retail investors is a move that will increase its usage and facilitate more transactions between customers, merchants, and digital assets.
The CEO of the company has mentioned crypto multiple times. He said that crypto functionality isn’t speculative but a development move that will give customers more options when shopping online.
Related: PayPal records its highest Bitcoin volume since the May BTC price crash
Marathon Digital Holdings
Marathon Digital, a Nasdaq listed company, has seen its stock prices rise recently because of its Bitcoin purchases. The company published a letter in May this year expressing its intent to work with Compute North on hosting a Bitcoin mining data centre with a 300-megawatt power.
The company has made great progress so far with its revenue increasing by 1,444% over the past year. It has also seen a host more than 70,000 Bitcoin miners set its hash rate at 10.37 EH/s. Marathons Digital anticipates that its operation will achieve carbon neutrality of up to 70%, given the increasing Bitcoin mining energy concerns.
Marathon Digital has 18.3 percent of its total value invested in Bitcoin and cash. It continues to buy more Bitcoin and store the cryptocurrency it produces at greater percentages. Marathon Digital can mine up to 50 Bitcoin per day according to reports. This puts the company’s worth at over $5 billion.
Related: Marathon Digital shares reach 6-year high, as company HODLs $460M Bitcoin
Hut 8 Mining
Hut 8 Mining is a unique Bitcoin mining company that uses a business model that allows for scaling. The company is considered one of Canada’s most promising mining and blockchain infrastructure companies. It has mined 264 Bitcoin in September alone. This equates to an average of 9.11 BTC per day.
As the company moves towards its goal to hold 5,000 self-mined Bitcoin by the end the year, the company has adopted a long term Bitcoin holding strategy. 100% of self-mined Bitcoin will be deposited in custody. Hut 8 Mining had 4,724 Bitcoin in its custody as of September 30, 2018.
Related: Hut 8 Cryptominer plans to hold 5K Bitcoins by 2022
EQONEX Group offers financial advisory services and digital assets. The company, which is listed on Nasdaq, has been rebranded and now offers additional services, such as a cryptocurrency exchange, custody platform, multi-venture trading service, and an over-the counter (OTC).
EQONEX was the first cryptocurrency-related company to be listed on Nasdaq in September 2020. Its crypto exchange has seen rapid growth, reaching a 24-hour trading volume exceeding $260 million and $4.5 billion in a 30-day period.
EQONEX isn’t the largest crypto exchange, but it boasts its regulatory compliance, and the fact it doesn’t make markets. This avoids the conflict of trading against clients.
Increasing institutional interest
The advantage of investing in stocks offered by digital asset companies is that the investor isn’t directly exposed to volatile market movements.
An investor can also invest in crypto-related companies, which allows them to avoid the complexity of buying and safe storing digital assets. This gives them the opportunity to reap the benefits of crypto and blockchain technology.
It is now easier than ever for institutional capital, whether it be directly or indirectly, to invest in the crypto and digital assets market. This is due to the growing number of digital asset companies, whose stock can be traded publicly on stock exchanges like Nasdaq.
Companies such as AMD and Nvidia are contributing more to crypto and blockchain industries through the mining of crypto using their graphical processing units. These are just a few of the digital asset companies listed publicly that investors can consider when investing in crypto.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.