The world of cryptocurrencies is witnessing significant growth and innovation in recent years. With the market capitalization of cryptocurrencies reaching new heights and cryptocurrencies becoming an increasingly mainstream asset class, investors are finding it hard to ignore the digital currency landscape any longer.
This surge in interest is leading investors to look for new and innovative ways to capitalize on the potential opportunities offered by cryptocurrencies and blockchain technology. Two companies that have emerged as the top picks for investors seeking cryptocurrency exposure are Coinbase and Riot Blockchain.
Coinbase – The Leading Exchange for Cryptocurrencies
Coinbase is one of the world’s largest cryptocurrency exchanges. Founded in 2012, Coinbase has rapidly grown to become a leading player in the cryptocurrency space, with over 56 million verified users across more than 100 countries.
Coinbase offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, Litecoin, and many others. The platform also offers a range of ancillary services, including staking, a cryptocurrency wallet, and institutional trading services.
Coinbase is listed on the NASDAQ exchange under the ticker COIN. The company’s shares were offered to the public in April 2021 via a direct listing. The IPO was a resounding success, with the company’s share price soaring nearly 70% in the first week of trading.
Investors seeking cryptocurrency exposure can invest in Coinbase by purchasing its stock. With the rapid growth of the cryptocurrency market, Coinbase’s long-term prospects look promising, making it an attractive investment opportunity.
Riot Blockchain – A Miners Paradise
Riot Blockchain is a cryptocurrency mining company that is focused on mining Bitcoin. The company has been operational since 2017 and has a market capitalization of nearly $3 billion.
Mining is the process of verifying transactions on the blockchain network by solving complex mathematical equations. Miners are rewarded with new Bitcoin coins for their efforts and also earn a fee for validating transactions. As the number of transactions on the blockchain network grows, mining becomes more profitable.
Riot Blockchain has a fleet of over 48,000 mining rigs in operation, making it one of the largest Bitcoin mining companies in the world. The company’s mining operations are located in the United States, making it an attractive investment option for those who want to invest in companies that operate domestically.
Investors seeking cryptocurrency exposure can invest in Riot Blockchain by purchasing its stock. With Bitcoin’s price continuing to rise, Riot Blockchain’s mining operations are likely to remain highly profitable.
Crypto is an exciting and emerging asset class that has captured the attention of investors across the globe. With the potential to generate massive returns, investors are looking for new and innovative ways to capitalize on the cryptocurrency boom.
Coinbase and Riot Blockchain offer investors a unique opportunity to gain exposure to the cryptocurrency market. As two of the leading players in the industry, both companies have the potential to generate significant returns for investors.
Investors looking to invest in the cryptocurrency sector should consider Coinbase and Riot Blockchain as options. With both companies well-positioned to capitalize on the cryptocurrency boom, they are excellent investment opportunities for anyone looking to unleash their crypto potential.
As cryptocurrency continues to gain mainstream attention, many investors are looking for ways to get exposure to the market without directly owning cryptocurrencies that can be highly volatile or lack a regulatory framework. Investing in companies that are involved in the cryptocurrency market is an easy way to give your portfolio this exposure and capitalize on the profits this burgeoning industry can produce.
Two stocks that are well suited for this investment strategy are Riot Blockchain (RIOT -2.08%) and Coinbase Global (COIN -4.76%).
Riot Blockchain is a Bitcoin miner that offers investors a way to gain exposure to the world’s most valuable cryptocurrency. In recent years, few rivals have been able to keep pace with Riot’s production and ability to cut costs and make money. Since the beginning of 2022, the company has mined the second most Bitcoins in the industry with more than 8,200. This production is likely a reflection of its massive facilities in west Texas that continue to boost Riot’s mining capabilities.
By successfully mining Bitcoin, Riot is then able to capture profits by selling the coins immediately at market prices or add then to its reserves and wait for Bitcoin’s price to increase. Inevitably, Riot’s stock is highly correlated to Bitcoin’s price. As for expenses, Riot employs a unique business model to ensure energy costs (the primary expense of Bitcoin mining companies) are kept in check. Thanks to the unique energy grid in Texas, Riot is actually able to sell energy that would have been dedicated to mining Bitcoin back to the electricity market. This proves to be especially strategic when the cost to mine a Bitcoin is greater than the potential profit, a scenario that is common in bear markets. As a result of this business model, Riot was able to generate more than $27 million in power credits through voluntary power curtailments in 2022.
Expanding on those low costs, the company spent around $17,900 on average per Bitcoin mined, the second lowest of all mining companies. Riot has a debt-free balance sheet and plans to expand its operations in west Texas by the end of the year, which could further reward investors.
On the other hand, Coinbase Global is a cryptocurrency exchange that relies on the crypto market as a whole. Although the shares remain well off their all-time highs, there is promise for Coinbase as its new revenue-producing strategies are finally bearing fruit.
To create revenue in even the toughest of markets, Coinbase has developed a suite of products called subscriptions and services. These products primarily consist of blockchain rewards, custodial fees, and interest income. Subscriptions and services now represent 49% of total revenue.
In addition to a more comprehensive offering of products, Coinbase plans on expanding its reach globally. Although the company already had a presence internationally, there is a renewed effort to prioritize overseas expansion. Progress is already being made with Coinbase recently launching its own International Exchange last March.
Thanks to this adaptability and agility, Coinbase has navigated multiple crypto bear markets in the past and looks as though it has made it through this one as well. With the prospects of a rally in the cryptocurrency market looking more likely, Coinbase could provide investors with an easy way to gain exposure to an industry that is budding with potential.
In conclusion, investing in companies involved in the cryptocurrency market is a good strategy to gain exposure and capitalize on the growing potential of this industry. Riot Blockchain and Coinbase Global are two good options for investors who are looking for different ways to benefit from the growth in the cryptocurrency industry. As with any investment, these companies come with risks, but for those willing to take them, the potential rewards are huge.