Investing in crypto typically involves the buying of different digital currencies and tokens. However, traditional investors who prefer to invest in stocks can also buy so-called cryptocurrency stocks.
In this article, we look at what crypto stocks are and explore five crypto stocks you can look into as an investor.
What are Crypto Stocks?
Cryptocurrency stocks refer to publicly traded shares of companies that operate in or have significant exposure to the blockchain industry.
These companies may be involved in various aspects of the industry, such as mining, trading, technology development, or providing services to other blockchain-based entities.
Unlike direct investment in cryptocurrencies, which involves purchasing digital assets like Bitcoin (BTC) or Ether (ETH), investing in crypto stocks offers a way to gain exposure to the crypto market through traditional stock exchanges.
Why Investing in Crypto Stocks is (Probably) Not a Bad Idea
If you’re an equity investor looking to diversity into digital assets, investin in crypto stock is a viable option.
Investing in crypto stocks offers several potential benefits:
- Diversification: Adding crypto stocks to your portfolio can diversify your investment holdings, reducing overall market risk.
- Regulatory compliance: Unlike cryptocurrencies, publicly traded companies are subject to clear regulations, which reduces the regulatory risk of investing in crypto assets directly.
- Potential for high returns: The cryptocurrency industry is still in its early stages, and companies that successfully navigate this landscape could deliver substantial returns.
However, it’s essential to remember that investing in stocks, including crypto stocks, carries inherent risks. Market volatility, regulatory changes, and competition can impact stock prices. Thorough research and due diligence are crucial before making any investment decisions.
5 Crypto Stocks You’ve Probably Never Heard Of
Now, let’s explore five crypto stocks that might have slipped under your radar.
Samara Asset Group (SRAG)
Samara Asset Group (formerly, Cryptology Asset Group) is a deep-tech powered alternative asset manager with a hyperfocus on alpha-generating strategies and Bitcoin.
According to Samara, the future of finance lies in decentralization and democratization, empowered by Bitcoin. The company’s mission is to help realize this future by investing in the best emerging asset managers and Bitcoin builders, empowering shareholders to participate in the performance of their strategies and growth of the Bitcoin ecosystem.
Samara was co-founded by Christian Angermayer’s family office, Apeiron Investment Group, and is led by CEO Patrick Lowry.
Marathon Digital Holdings, Inc. (MARA)
Marathon Digital Holdings is a digital asset technology company that engages in the mining of cryptocurrencies, primarily Bitcoin. The company operates a fleet of mining rigs, which are used to solve complex mathematical problems that validate transactions on the Bitcoin network, in return for freshly minted bitcoins as rewards.
Marathon’s aggressive expansion strategy and its focus on increasing its mining capacity have made it one of the largest Bitcoin miners in North America. The company’s stock performance is closely tied to the price of Bitcoin, making it a proxy for investors who want exposure to the digital asset without directly holding it.
Marathon’s commitment to operational efficiency and its plans to achieve carbon neutrality add to its appeal as a sustainable investment option.
Canaan Inc. (CAN)
Canaan is a Chinese company that specializes in the design and manufacturing of integrated circuits for Bitcoin mining. It is one of the leading providers of blockchain servers and ASIC microprocessor solutions for Bitcoin mining, which are essential components for the mining industry.
Canaan’s stock offers investors a unique opportunity to gain exposure to the hardware side of the cryptocurrency market. The company’s continuous innovation in developing high-performance mining machines has helped it secure a significant share of the market.
As the demand for more efficient mining equipment grows, Canaan’s technological advancements position it as a key player in the industry.
Hut 8 Mining Corp. (HUT)
Hut 8 Mining is a Canada-based cryptocurrency mining company that focuses on mining Bitcoin and Ethereum. The company operates large-scale mining farms in Canada, leveraging the country’s cold climate and abundant renewable energy resources to enhance its operational efficiency.
Hut 8 distinguishes itself by not only mining cryptocurrencies but also by holding a significant portion of its mined assets, making it one of the largest holders of self-mined Bitcoin among publicly traded companies. This “HODL” strategy allows Hut 8 to benefit from the appreciation of Bitcoin’s value over time, providing investors with potential long-term gains.
The company’s commitment to sustainability and its strategic location in a crypto-friendly jurisdiction add to its attractiveness.
Galaxy Digital Holdings Ltd. (GLXY)
Galaxy Digital Holdings is a diversified financial services and investment management company in the digital asset, cryptocurrency, and blockchain technology sectors. Founded by former hedge fund manager Michael Novogratz, Galaxy Digital operates in multiple areas, including trading, asset management, principal investments, and advisory services.
Galaxy Digital’s comprehensive approach to the cryptocurrency market makes it a compelling investment. The company’s involvement in various segments of the crypto ecosystem provides diversified exposure to the industry’s growth.
Galaxy Digital’s expertise and strategic investments in promising blockchain projects position it as a thought leader and innovator in the space.
Conclusion
Investing in crypto stocks offers a unique opportunity to gain exposure to the rapidly growing cryptocurrency industry through traditional financial markets.
These lesser-known crypto stocks provide investors with diversified options to capitalize on the ongoing expansion and innovation in the digital asset space, making them worthy of consideration for those looking to invest in the future of finance.
