With the launch of the ProShares Bitcoin Strategy ETF (NYSEAMERICAN:BITO), the first real Bitcoin ETF, the next wave of the Bitcoin bull market appears to be well in gear, with the cryptocurrency hitting new all-time highs this week and approaching a potential test of the $70k level.
However, for investors looking to get involved now, the question of implementation arises: Should one partake of the new ETF? How about the BTC futures market? What about the coin on a cryptocurrency exchange?
There’s a fourth option that actually might be the most interesting of all: stocks with exposure to the cryptocurrency space.
This might be the best option because many of these names have direct exposure in one form or another to the value creation going on in the Bitcoin market, but haven’t fully priced in the bull move in the coin. And many of these names have a higher beta, or movement potential, than the coin itself, resulting in the potential for triple-digit gains on even small moves higher from here in BTC.
That suggests the bigger rewards could actually be in related stocks. With that in mind, we take a look at a few of the more interesting stocks in the Bitcoin space below.
Marathon Digital Holdings Inc (NASDAQ:MARA) is one of the most recognizable names in the crypto mining space. With Bitcoin ripping over recent weeks into and through the launch of the BITO ETF, it’s no surprise that the stock has been rewarding investors, nearly doubling in the past month.
The company bills itself as a digital asset technology player that engages in mining cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
Marathon Digital Holdings Inc (NASDAQ:MARA) recently announced an expanded collaboration with NYDIG, a leading technology and financial services firm dedicated to Bitcoin, to provide members of Marathon’s Bitcoin mining pool, MaraPool, with seamless access to NYDIG’s comprehensive and institutional-grade services for Bitcoin miners.
“NYDIG has been an important collaborator of ours, providing a variety of treasury management and trading services, including facilitation of the purchase of 4,812.66 bitcoins in January,” said Fred Thiel, Marathon’s CEO. “NYDIG’s team shares our passion for professionalizing and institutionalizing the Bitcoin mining industry in the U.S., and by collaborating with NYDIG on our mining pool, we have enabled all members of our pool to have access to the same world class solutions and expertise from which Marathon has benefitted.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 27% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 56% in that time on strong overall action.
Marathon Digital Holdings Inc (NASDAQ:MARA) managed to rope in revenues totaling $29.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 10146.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($366.5M against $3.3M).
KULR Technology Group Inc (NYSEAMERICAN:KULR) is on this list as a speculative item for one simple reason: the company has incredibly strong IP assets and just hinted that it is expanding into the cryptocurrency space, though we don’t yet know the nature of that association.
KULR shares launched on Wednesday after the company tweeted out: “Working on something quite a ₿it special at the $KULR facility. Stay tuned for more!” That’s an obvious tease for something more to come that could make the stock the next speculative gem in a space that is booming among the usual suspects. Money will be chasing any story that can effectively include this theme. And KULR looks like a promising possibility on that level.
KULR Technology Group Inc (NYSEAMERICAN:KULR) has established itself as one of the most interesting names in the EV and L-Ion space, with a unique niche as a leading-edge publicly traded play on EV battery safety.
It has already earned enormous credibility with its 30-year history tied to carbon fiber thermal energy management technology for aerospace and defense applications. KULR has already built custom heat management technology for two NASA JPL space missions (Mars Perseverance Rover and the mission to put a human back on the Moon’s surface by 2025) and its tech is currently in use on the International Space Station. KULR has also already won over 30 NASA contracts, and has inked deals with the DoT and USAF.
One can only speculate as to what its involvement in the crypto space may be, but it makes sense to imagine something along the lines of a unique pick and shovel to the crypto mining marketplace. The company’s core technology could line up very well in that regard. However, we will have to wait and see as the company comes out with more information.
KULR Technology Group Inc (NYSEAMERICAN:KULR) also recently announced, alongside its new partner, Heritage Battery Recycling, that it has expanded its safe battery transportation market share as a result of HBR’s merger with Retriev Technologies. According to the release, this combination will create the largest lithium-ion battery recycler in North America.
Paypal Holdings Inc (NASDAQ:PYPL) engages in the development of technology platform for digital payments. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The firm manages a two-sided proprietary global technology platform that links customers, which consist of both merchants and consumers, to facilitate the processing of payment transactions.
It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. The firm also enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom. The company was founded in December 1998 and is headquartered in San Jose, CA.
Paypal Holdings Inc (NASDAQ:PYPL) recently announced it will no longer charge late fees for missed payments on buy now, pay later products globally. According to the company’s release, starting October 1, new customer purchases with Pay in 4 in the United States, Pay in 3 in the United Kingdom, and Pay in 4X in France will no longer be subject to late fees – joining PayPal’s buy now, pay later solutions in Germany and Australia which do not charge late fees for missed payments. Eliminating late fees builds on PayPal’s commitment to deliver the most customer centric, global installment solution portfolio that helps meet the needs of today’s consumers and merchants.
“Building on the success of our Pay in 4 launch in Australia without late fees, we know that eliminating late fees delivers an even better buy now, pay later experience that provides incredible value to our consumers and merchant partners. We’re able to help provide consumers peace of mind as they manage their plans on their terms while also helping merchants increase sales conversions,” said Greg Lisiewski, Vice President of Global Pay Later Products at PayPal. “This change is closely coupled with PayPal’s mission and values as we seek to remove hurdles that provide financial services to customers of all types while helping our merchant partners succeed in the changing retail landscape.”
Even in light of this news, PYPL hasn’t really done much of anything over the past week, with shares logging no net movement over that period.
Paypal Holdings Inc (NASDAQ:PYPL) managed to rope in revenues totaling $6.3B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 21%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($12.4B against $41.3B, respectively).Other key plays in the crypto stock space include Sos Ltd – ADR (NYSE:SOS), Bit Digital Inc (NASDAQ:BTBT), and Grayscale Bitcoin Trust (Btc) (OTC US:GBTC).
