3 crypto stocks you probably haven’t heard of
Photo by Viktor Forgacs on Unsplash
Investing in Bitcoin (BTC) or Ethereum (ETH) is the go-to move for many crypto investors, but there’s another way to ride the digital asset wave—crypto stocks. By investing in publicly traded companies with strong ties to the crypto sector, you can tap into the market’s highs and lows without holding the coins yourself.
Read on to learn about three crypto stocks you might be overlooking: Hut 8, Riot Platforms, and Samara Asset Group. But remember, before you make any investment–in crypto, stocks, or otherwise–always conduct your own research and speak to a financial advisor if you need to.
What are crypto stocks and how do they work?
Crypto stocks are shares of companies that operate within the cryptocurrency ecosystem. These companies may engage in activities such as cryptocurrency mining, blockchain technology development, digital asset exchanges, or holding significant amounts of cryptocurrencies on their balance sheets.
Investing in crypto stocks provides indirect exposure to the cryptocurrency market through traditional equity investments.
The performance of crypto stocks is influenced by both the company’s operational success and the broader cryptocurrency market trends. For instance, a company heavily invested in Bitcoin may see its stock price fluctuate in tandem with Bitcoin’s market value.
However, it’s important to note that crypto stocks are also subject to traditional market factors, including regulatory changes, competition, and overall economic conditions.
Leading crypto stocks worth checking out
Here are three digital asset stocks you could check out if you’re looking to explore cryptocurrency stocks for your equity portfolio.
Hut 8 Mining Corp (HUT)
Hut 8 Mining Corp is a major player in the Bitcoin mining industry based in Canada. It is known for its diversified revenue streams, combining Bitcoin mining with data center hosting services.
Hut 8 recently announced plans to merge with U.S.-based mining firm USBTC, creating a joint venture to enhance its mining capacity and expand its North American footprint. This move is expected to increase the company’s competitiveness in the Bitcoin mining sector.
Hut 8 stands out for its focus on operational efficiency and diversification. In addition to mining, its data centers provide consistent revenue streams, reducing its reliance on Bitcoin price swings. However, as with Riot Platforms, investors should be prepared for volatility linked to Bitcoin’s market performance.
Riot Platforms (RIOT)
Riot Platforms (formerly Riot Blockchain) is a leading Bitcoin mining company based in the U.S., but it has a global appeal to investors seeking a stake in crypto mining. It is one of the largest Bitcoin miners, leveraging state-of-the-art facilities to validate blockchain transactions and generate rewards.
The mining company has expanded its operations significantly, with a focus on increasing its energy efficiency and scaling operations in Texas. The company’s partnership with energy providers highlights its strategy to integrate renewable energy sources into mining.
Riot offers direct exposure to Bitcoin mining. Its revenue and profitability are closely linked to BTC prices, making it a high-risk, high-reward investment.
Samara Asset Group (SRAG)
Samara Asset Group, formerly Cryptology Asset Group, is a European investment company focused on deep-tech and alternative asset management. Its portfolio is heavily weighted toward blockchain and Bitcoin-related businesses, making it an attractive option for investors seeking exposure to digital assets.
The company recently announced a planned issuance of a €30 million bond to increase its Bitcoin treasury holdings, a move that underscores its strong conviction in the cryptocurrency, and to invest in LP stakes in alternative investment funds.
Samara’s diversified portfolio also includes Bitcoin infrastructure companies like Northern Data and Deutsche Digital Assets. This approach provides exposure to various aspects of the crypto ecosystem. However, investors should note the inherent risks tied to Bitcoin’s price volatility and the broader regulatory landscape, which is the case with all cryptocurrency-related stocks.
The takeaway
Exploring crypto stocks provides investors with alternative avenues to participate in the cryptocurrency market through traditional equity investments. Each company offers unique exposure to different facets of the crypto ecosystem, with distinct benefits and risks.
As with any investment, thorough research and a clear understanding of the associated risks are essential before making investment decisions in the dynamic and rapidly evolving cryptocurrency sector.
