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Best Cryptocurrency Stocks Worth Investing In 2021
Even to this day, cryptocurrencies continue to take over the world by storm. This is even more so because Bitcoin (BTC) is now worth more than $60000 each. An increasing number of financial institutions and businesses have chosen to take up Bitcoin. This certainly makes exposure to cryptocurrency an easy feat.
Having said that, investors at times wish to steer clear of the issues and hassles that emerge when investing in cryptos themselves. In case that is you, the cryptocurrency stocks we will discuss here will help you gain exposure to cryptocurrencies in a conventional way.
By investing in these stocks, you can avoid the difficulty of trying to purchase cryptos and figuring out where to put them up. However, the majority of them are highly correlated to the difference in the basic cryptocurrency they are connected with.
The following stocks we are about to discuss will provide investors with different exposure levels to cryptocurrencies. It will cover Bitcoin stock plays and more conventional digital ledger, as well as various other hypothetical stocks.
At any rate, do remember that in case cryptocurrencies suffer a loss, the stocks are most likely to fall as well. They will collapse even faster in comparison to the basic crypto.
The following nine companies include:
Riot Blockchain, Inc.
Marathon Digital Holdings, Inc.
Roundhill Ball Metaverse ETF
Grayscale Bitcoin Trust
Coinbase Global Inc.
International Business Machines Corporation
Top Nine Cryptocurrency Stocks to Consider
Here are the top Nine cryptocurrency stocks worth investing in. We took into consideration the business bases that guide their gains, their connection to the crypto system and end users’ interest in their services/products.
Riot Blockchain, Inc.
First on our list, we have Riot Blockchain, Inc. Located in the US, this particular digital company mines Bitcoin. Riot is tied to the Bitcoin blockchain, and it continues to promote the coin mining greatly.
The objective of the company is to become one among the greatest and most economical bitcoin producers in the North American region. It is set to build, support and operate systems of blockchain technology.
According to the recent event, Riot Blockchain is said to invest $35 million to gain additional mining capacity, called the Bitmain Antminers. This brings its resources to around 37000 miners.
Currently, Riot Blockchain is also identified as one among the few companies listed on NASDAQ in the United States. With Bitcoin rising recently, the company stock has had great success as well.
At present, its shares sit on profits of more than 1400% over the last six months. Even so, the company does not seem to have any plans to stop anytime soon.
In the initial three months of the year 2021, there was an increase in total cash as well as Bitcoin to more than $270 million. However, Riot Blockchain overlooked market indications on 3-month interval revenue and gains for every share.
The company, nevertheless, reported a quarter-over-quarter improvement of over 60% in overall mined coins, all the while announcing gains results.
Furthermore, the company Citadel Investment Group located in Chicago, is a major investor in Riot Blockchain. It owns shares of more than two million that are worth over $120 million.
Similar to Tesla, Inc., and Coinbase Global, Inc., Riot Blockchain, Inc., is an incredible cryptocurrency stock to put your trust and money on.
Marathon Digital Holdings, Inc.
Next is Marathon Digital Holdings, Inc., the digital firm that focuses on cryptocurrency mining as well as other digital resources. It aims at developing a massive platform for miners mining Bitcoins where they can get the coins with less hassle.
The firm provides the computing capacity which is needed for mining BTC. The platform they provide allows the consumers to mine the coin by joining forces with other users in a pool. Whenever this happens, the paydays increase and are usually higher.
Marathon Digital Holdings, Inc. was said to tie with the Russell 2000 index, which measures the small capital companies’ performance located in the US. The CEO of the firm, Fred Thiel, stated that its reason for tying with the index was to boost visibility to shareholders and investors.
In June, the company declared its mining of more than 225 Bitcoins in the month of May. This is a 40% increase in comparison with the coin production in the month of April. At present, it now owns a total of 5518 coins which is worth more than $200 million.
In August 2021, the firm announced the updates of its mining operations and BTC production for the month of July. Above all, there was a significant increase in the monthly production by over 65%. The overall BTC holdings increased to roughly 6225.6 BTC.
Furthermore, the company obtained around 19401 S19 Pro ASIC miners through Bitmain along with extra 4287 miners presently in motion. Amazingly, it currently has over 19350 miners that produce 2.09 EH/s.
On the 1st of August 2021, Marathon Digital Holdings, Inc., also declared its investment in purchasing extra 30000 Bitmain miners. All in all, investing in this particular cryptocurrency stock seems to be a great option, especially in the long run.
Roundhill Ball Metaverse ETF
Our following topic focuses on one of the exchange-traded funds (ETFs) that identifies blockchain stocks. This firm gives exposure to ‘Metaverse,’ which is considered as the existing Internet’s beneficiary, as a component of FIR, i.e., the Fourth Industrial Revolution.
According to recent studies, whatever that grew in the FIR times involves three distinguishing features, that includes:
This particular revolution focuses on converging each information technology in order to build a new world known as the ‘Metaverse.’ As a result, the term ‘metaverse’ signifies a collective virtual platform beyond space where both the FIR and the COVID-19 bring in the tech-savvies.
Roundhill Ball Metaverse ETF, with 50 holdings, traces the Ball Metaverse Index’s returns. The investment began its trade in the month of June and had more than $35 million in resources. To put it another way, this firm is a young and small-scale ETF.
With regards to the breakdown of its sub-sectoral, the computer unit part forms the highest segment with over 26%. Following that is the gaming platform, end-user electronic parts and cloud solutions with 19%, 8.9% and 22.7%, respectively.
The Roundhill Ball Metaverse ETF was developed with the aim to let people make an investment in the metaverse and gain an advantage out of it. It gives exposure to universally listed businesses actively engaging in the metaverse, its activities or those that provide technologies, services, products, technical skills, etc.
Under normal conditions, a minimum of 80% of investment’s net commodities will go to Metaverse Companies. This may also cover the investments in SPACs or ADRs. Its finance is undiversified.
At the moment, some of the firm’s top holdings include NVIDIA, Autodesk, Tencent, Amazon, Roblox, Unity, Facebook and Microsoft, among others.
Grayscale Bitcoin Trust
While one may think the Grayscale Bitcoin Trust is the same as an exchange-traded fund (ETF,) but technologically speaking, it is not. Nevertheless, it does perform similarly to an ETF.
The firm is created on trusts like the SPDR Gold Trust (GLD), which stands for physical and genuine holdings of the basic asset. You can access your commission account and purchase GBTC shares similar to how you would the Gold Trust.
In addition, Grayscale Bitcoin Trust lets you trace the Bitcoin holding prices. However, you cannot get money for your actual Bitcoin shares, just like how the majority of the asset ETFs work.
This firm does not make trading on any major exchanges. It makes the trading ‘over the counter.’ Here, there is no need for registering with the Securities and Exchange Commission (SEC.)
Generally, ETFs make trading in close collaboration with the net asset value (NAV,) which implies that you get what you purchase. Nevertheless, Grayscale Bitcoin Trust trades at a considerable premium or discount. This means you may invest in BTC for very little or very much as compared to its actual worth.
In the year 2017, the pricing of BTC went figurative, and dealers got into the Grayscale firm. This sent the net asset value to a premium of over 100%. Usually, the company had made trading at a premium.
Nevertheless, after the high auction in BTC prices in the months of April and May, the shares closed at a discount of over 12%. This to the BTC value that the company holds.
If Bitcoin ETFs get accepted, there are chances of Grayscale Bitcoin Trust’s probable demand crashing since ETFs costs may be lower. In case this occurs, all premiums would disappear, meaning the price will decrease despite BTC prices remaining high.
Having said all that, Grayscale Bitcoin Trust is an ideal option for stakeholders and investors wanting to purchase Bitcoin within their commission account only. This is especially true because of the firm’s existing NAV discount.
One other cryptocurrency contender standing on top is MicroStrategy. It is a prominent firm that provides analytical services as well as business intelligence.
Through its channel, the firm provides companies worldwide with industry-leading analytical enterprises. Some noteworthy organizations include Accenture, 3M, Amazon, etc.
MicroStrategy has been investing in a huge amount of Bitcoin. For instance, the firm bought around 70780 BTC for $16000 each last year. Therefore, MicroStrategy stocks are gaining great success, all thanks to the company’s increasing Bitcoin funds.
This particular firm is favored by many crypto traders and investors. As a result, this explains its stock’s year till date increase of more than 80%.
In addition to that, MicroStrategy announced that it purchased 328 Bitcoins in cash for around $15 million. Overall, the company has approximately 90859 Bitcoins which totals its Bitcoin holdings over $4 million.
Therefore, it is not surprising that most crypto investors are interested in investing in MicroStrategy stock.
Furthermore, in February, the firm presented nine hundred million convertible notes, along with around $1 billion following the green shoe option. Its objective is for the company to purchase additional Bitcoin.
So, in case MicroStrategy uses $1 billion to buy the coin at $53000 for each, the BTC in total will be around 18865. This will increase its Bitcoin holdings to approximately 89650 BTC. The value will be over $4 billion at $53000, meaning Bitcoin will be representing more than half of the firm’s market worth.
More so, the MicroStrategy firm is beneficial and is said to gain more than $6 on every share in 2021. Nevertheless, the price stands for 169 times gains.
However, after the deduction of the value of Bitcoin from its market capital, the company is worth only around $4.4 billion. So, if the $65 million estimations in this year’s net income take place, its original P/E ratio is 69 times only.
This is relatively high yet practical for an expanding software firm. In the meantime, investors gain free exposure to cryptocurrency by purchasing MicroStrategy stock.
Coinbase Global Inc.
Located in San Francisco, Coinbase Global Inc. is a well-known firm that offers services in order to support the trading of cryptocurrencies worldwide. It is a famous platform where crypto investors and traders can purchase, sell, transfer and store digital crypto assets.
Coinbase Global offers services to organizations as well as individuals to acquire digital currencies in over 30 countries globally.
At present, the company provides three essential crypto services that include Bitcoin, Litecoin, and Ethereum. It lets users make trading of over 50 alternative coins. Soon, it looks forward to including various other cryptocurrencies on the platform.
Till now, the company’s accomplishment has been dependent on the rise in cryptocurrency prices. As a consequence, many new users have created accounts on its platform.
Furthermore, Coinbase Global gains small transaction fees for every order placed to trade a cryptocurrency. However, the firm aims to be not just a trading place but something more than that. It also finances debit cards to let users spend from their digital wallet’s balance.
Adding to that, the company started a cloud channel for organizations to use and store their digital currencies.
Coinbase Global provides two ground-breaking changes:
To bring the tradition of asset loans to the majority, previously accessible to wealthy investors and traders only. Users can give collateral in the form of Bitcoin or other cryptos on the company platform. This, in turn, will get them a loan with low interest to finish off their daily expenses.
Thus, investors do not have to trade their assets during emergencies. It allows the principal to keep on compounding while dealing with issues.
For governments as well as financial organizations to adopt its blockchain analytics. The majority of blockchains work on a ledger publicly. Therefore, the firm can use this information and keep an eye out for illegal conduct and forbidden wallet addresses.
For instance, say a hacker was able to hack into a system and demanded Bitcoin as a ransom for unlocking the computer.
In cases like this, Coinbase Global can match the wallet address of the hacker with the various KYC information saved on its platform. This data will assist the police force in tracking down the finance flows and apprehending the hacker.
NVIDIA and AMD
NVIDIA and AMD are chipmakers that do not manage cryptocurrencies directly. Instead, these semi-conductor firms are the top-rated graphic processing units (GPUs) designers.
The companies are famous for generating premium video game graphics. Also, the GPUs can now set up comprehensive computing programs such as crypto assets mining, artificial intelligence, and data centres.
Cryptography, as well as the creation of blockchain, needs extensive computing power. So, keeping that in mind, GPUs are the ideal choice for the task.
In the year 2008, the two semi-conductors stock prices increased as a result of the profitable cryptocurrency prices. This is because the currency miners hurried to buy GPUs for the job.
GPUs are a basic hardware part of the formation and administration of cryptocurrencies. What’s more, NVIDIA has set up new chips line-up, particularly for digital mining, in the year 2021.
Furthermore, NVIDIA, as well as AMD, declared acquisitions recently, cementing their spots as frontrunners in the chip industry.
NVIDIA aims at purchasing ARM Holdings, a chip building design licensor for smartphones, data centres, etc. AMD, on the other hand, plans to obtain program-controlled chip innovator Xilinx.
Overall, both the semi-conductor firms are confident of keeping on getting a hold of the market share in the industry. They will continue leading the path to develop more technologies that emerge like blockchain.
Located in Chicago, the CME Group is a frontrunner of the derivative marketplace all around the world. It consists of four tradings, i.e., CME, COMEX, CBOT and NYMEX.
Every trade offers various comprehensive benchmarks throughout significant asset categories, including set income, alternative cryptocurrencies, equities, etc. Thus, the currency asset is what makes this particular firm a cryptocurrency stock.
In 2017, CME Group set up the initial market for the Bitcoin futures. Furthermore, at the beginning of 2020, it built a market for alternatives on the coin futures. This year, you will also find Ether futures available for trading.
In July, CME Group reported second financial quarter figures, and the profits came in at over $1 billion flat year-over-year. The company’s adjusted net earnings rose to more than $585 million. Also, its adjusted income for every share of $1.64 was flat year-over-year in comparison with $1.63 in the previous year’s quarter.
The company’s second-quarter income was more than what the market expected, which was induced by low expenses. Aside from that, there was also a rise in micro futures as well as hedging, which seem to have drawn retail interest.
Both agricultural and interest-rate futures exchange volume increased by almost 25% year-over-year.
Recently, the company has implemented micro futures, which are a fragment of the standard agreement size, targeting the smaller investors and traders. For instance, the contracts of micro WTI crude oil are 1/10 as large as the standard contract of WTI futures. That said, CME Group’s micro-Bitcoin futures of over 100000 were exchanged in just 6 days of launching the contract.
Setting up derivatives trades for prominent cryptocurrencies has provided cryptos such as Ethereum and Bitcoin additional authority. Not only that, it has offered a means to digital currency users to reduce risk from cryptocurrency price changes.
With that said, CME Group has yet to go big when it comes to cryptocurrency derivatives. However, the company is most likely to include additional crypto asset trades in the long run.
International Business Machines Corporation (IBM)
Last but certainly not least, we have the well-known International Business Machines (IBM.) This corporation takes a spot on our list because of its connection with independent blockchain technology.
This tech giant provides firm-level solutions via two chief parts, i.e., Global Business Services and Cloud & Cognitive Software. The company’s products and services include automation, security, data, artificial intelligence, blockchain, and so on.
IBM declared its second-quarter income in the middle of July. Its total profit raised 3% year-over-year to approximately $18 billion. Furthermore, its net earning was around $2 billion, with an increase of 8% year-over-year.
Income for every diluted share rose 7% year-over-year to over $2 billion. In the second quarter, the firm created a free flow of cash of around $1.5 billion.
The company is extending supplementary businesses with the aim to concentrate its efforts on fast-growing cloud-specific operations. Its cloud sale in total increased 13% year-over-year to approximately $25 billion, then an increase of 20% in cloud-based supplier Red Hat.
Therefore, over a $30 billion investment in Red Hat provides the company with various cross-selling chances with its consumers.
Additionally, Kyndryl, the divestment of IBM’s controlled infrastructure organization, is most likely to be completed at the end of the year 2021. Once done, the management is expected to prioritize the company cloud and eventually gain more substantial growth and income.
Recently, IBM declared its deal of licensing its software to METACO, located in Switzerland. This deal will provide cryptocurrency custody services to finance companies. There will be a rise in the demand for these services in the long run, similar to the gold services provided globally.
Artificial intelligence technologies and IMB cloud will also take a significant part in blockchain and cryptocurrency services in the following years to come.