As the digital currency giant Bitcoin surges beyond the $44,000 breakout mark and eyes higher prices and continuation, long-term participants hold their breath in anticipation and excitement.
Much like the thrill of a rollercoaster ride, the cryptocurrency market's volatility and thrill captivate both seasoned investors and curious newcomers. It's a realm where fortunes have been made, narratives are written, and opportunities beckon at every turn.
While Bitcoin grabs headlines, an alternative path into this realm exists crypto-related stocks.
For those intrigued by the potential of the crypto market but cautious about diving directly into the virtual currency space, these stocks offer an alternative avenue to ride the crypto wave and to be able to gain exposure to the industry.
Here are five crypto stocks that are gaining attention amidst Bitcoin's soaring price action and regained worldwide.
Marathon Digital Holdings (NASDAQ: MARA)
Marathon Digital Holdings, based in Las Vegas, focuses on Bitcoin mining. Initially a patent company, it rebranded in 2020 and partnered with a Montana coal plant for mining power. Led by CEO Fred Thiel, the team comprises of finance and tech experts.
Despite challenges, MARA raised funds through a public offering and invested heavily in mining gear. However, like its counterparts, it has faced extreme market volatility, regulatory uncertainties, and industry competition. Relying on Bitcoin's network brings potential operational and revenue risks, including cybersecurity and infrastructure issues.
Those challenges have not stopped shares from rocketing higher, though. MARA shares have soared recently, surging just over 180% in the previous three months and 600% over a year.
Riot Blockchain (NASDAQ: RIOT)
Riot Platforms, a US-based blockchain company, aims to lead Bitcoin mining in North America. Offering hardware, hosting, and software, it targets investors and industry players.
Led by CEO Jason Les, the team boasts diverse expertise. Like MARA, RIOT faces stock volatility driven by Bitcoin prices and operational performance. And with the resurgence of Bitcoin, shares of RIOT have followed suit. The stock is up over 60% over the previous three months and almost 370% over the previous year.
CleanSpark, Inc. (NASDAQ: CLSK)
CleanSpark is all about Bitcoin mining and creating eco-friendly setups for it. They used to go by Stratean Inc. before switching to CleanSpark, Inc. in 2016. They've been around since 1987 and are based in Henderson, Nevada. The company’s main goal is to make Bitcoin more accessible for financial freedom and inclusion.
The company boasts a market capitalization of slightly above $2 billion and was last trading in the upper band of its 52-week range. Like the above two mentioned names, CLSK has surged higher thanks to the price of Bitcoin. Over the previous three months, the stock has soared 181%.
ProShares Bitcoin Strategy (NYSE: BITO)
The ProShares Bitcoin Strategy ETF is an exchange-traded fund that primarily deals with long Bitcoin and short USD currency positions. Managed by ProShares, it actively handles a portfolio consisting of front-month CME Bitcoin futures. BITO was introduced on October 18, 2021, as a means of investment. The fund has $1.64 billion in assets under management and a net expense ratio of 0.95%. Over the previous year, the stock has surged almost 110% higher.
Grayscale Bitcoin Trust (OTCMKTS: GBTC)
Grayscale Bitcoin Trust serves as a bridge for those seeking indirect exposure to Bitcoin's price movements without holding the digital currency directly. Similar to an ETF, GBTC holds Bitcoin as its primary asset, allowing investors to partake in Bitcoin's price movements.
Investing in these crypto-related stocks offers a unique path to engage with the intriguing crypto market without directly handling digital assets. As Bitcoin's surge continues to draw attention, these stocks stand as a window into the world of blockchain and digital currencies.
However, it's important to remember that the cryptocurrency market's volatility demands extreme caution and research. So, before exploring certain opportunities further, it's essential for individuals to understand the risks and dynamics of this ever-evolving space.
