Maybe you have heard of cryptocurrencies but you’ve been concerned about investing in them. Or maybe you have dipped your toe into bitcoin, but want to diversify your crypto holdings in another asset class.
You might want to look into investing in cryptocurrency stocks. These are companies that either mine for crypto, own crypto, or provide ownership and trading services for cryptocurrencies.
Coinbase (COIN) is the largest cryptocurrency exchange in the United States. This $74 billion market cap company trades at 21 times trailing earnings and 47 times forward earnings.
MicroStrategy (MSTR) is a business intelligence company that has spent over $2.2 billion purchasing Bitcoin. The stock has a forward price to earnings ratio of 105.
PayPal Holdings (PYPL), the online payments company, now allows the purchasing and trading of cryptocurrencies. The stock has a trailing P/E ratio of 65 and a forward PE of 46.
Square (SQ ) is another financial services company that has invested about half a billion dollars in Bitcoin. It has a sky high trailing ratio of 225, but a forward PE of 103.
Marathon Digital Holdings (MARA) is a patent holding company which has purchased Bitcoin and Bitcoin mining equipment, and is involved in a joint venture to create a bitcoin data center. The stock has a forward PE of 12.
Voyager Digital (VYGVF) is involved in a digital platform to trade cryptocurrencies. The stock has a forward PE of 18.
Galaxy Digital Holdings (BRPHF) is a digital asset management company, which trades at 6.5 times trailing earnings and 13 times forward earnings.
Of course, you can alway buy a blockchain ETF, such asAmplify Transformational Data Sharing ETF (BLOK), which includes many of these stocks.
Also, stay tuned for a pure play bitcoin ETF that will invest in bitcoin directly.
Disclosure: Author has a long position in COIN and PYPL.
