Top stocks with digital asset exposure to keep an eye on

Highlights

• The crypto market is currently valued at US$2.6 trillion, as per coinmarketcap.com.
  
  
• In addition, there are 13,164 crypto assets and 422 exchanges.
  
  
• The craze for digital assets is creating a strong tailwind for firms engaged in related activities.

The crypto craze is creating a strong tailwind for companies engaged in various related activities. Blockchain-based products like cryptocurrencies, tokens, NFTs, DeFi protocols, etc., are catching the imagination of people around the globe at a time when the world is undergoing major economic changes. So, why is the buzz around cryptos? 

Top stocks with digital asset exposure to keep an eye on

Today, many stocks are exposed to cryptos, either directly through mining and trading or have invested in such companies. Here we discuss eight stocks that have varying levels of digital asset exposures.

Advanced Micro Devices (NASDAQ: AMD)

Although the company does not deal with cryptocurrencies directly, it manufacturers graphics processing units (GPUs) used in data centers, AI applications, or creating crypto assets and high-end video game graphics. GPU is critical hardware for creating or managing crypto assets. 

AMD’s revenue was US$3.8 billion, and operating income was US$831 million in the June quarter of 2021. The stock gave a 34.12% return YTD.

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Source – Pixabay

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American Express (NYSE: AXP)

The New York-based financial institution has a presence in some 130 countries. It provides credit card services to buy crypto products and cryptocurrencies. People can purchase crypto products using credit cards. Experts say it is the initial phase of mainstreaming cryptos.

American Express’ revenue was US$11 billion, and net income was US$1.8 billion in the September quarter of 2021. The stock gave a 49.86% return YTD. 

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Facebook (NASDAQ: FB)

Facebook plans to create an open-source cryptocurrency called Diem, formerly named Libra, which will be available in a digital wallet. It is currently working on a wallet called Novi.

The Menlo Park, California-based company has a market capitalization of US$886 billion. Its revenue and operating income were US$29 billion and US$10 billion, respectively, in the September quarter of 2021. The stock gained 15.53% YTD.

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Square, Inc. (NYSE: SQ)

The San Francisco, California-based fintech company provides payment processing systems for merchants and Cash App, a person-to-person payment platform. 

The company has a digital asset exposure through its Cash App, which allows users to buy and sell bitcoins seamlessly. Besides, Square also has a team of bitcoin developers named Square Crypto that works on its crypto projects. 

Square’s revenue was US$4.68 billion, and net income was US$204 million for the June quarter of 2021. The stock rose 21.42% YTD. 

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Riot Blockchain, Inc. (NASDAQ: RIOT)

It is a bitcoin mining company and produced 406 bitcoins last September, up by 346% YoY. 

The Castle Rock, Colorado-based mining company builds, supports, and operates blockchain technology. It has a market capitalization of US$2.7 billion, and the P/E ratio is 66.31.

For the June quarter of 2021, its revenue was US$34 million, and the net income was US$19 million. The stock rose 67.49% YTD.

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Hut 8 Mining Corp (NASDAQ: HUT)

This digital asset mining company focuses on Ethereum and Bitcoin mining. It has mined 264 bitcoins in September, with an average production rate of 9.11 bitcoin per day. 

Hut 8 Mining Corp. had 3,824 bitcoins worth US$166 million at the end of the June quarter. 

Its revenue was US$33.55 million, and operating loss was US$14.81 million. The stock rose 362.46% YTD.

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Source – Pixabay

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Coinbase Global Inc. (NASDAQ: COIN)

The cryptocurrency exchange recently announced to enter the non-fungible token (NFT) market space. The company was listed on NASDAQ in April 2021. Its revenue was US$2.2 billion, and net income was US$1.6 million for June quarter 2021. The stock has grown by around 16% since April.

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Tesla, Inc (NASDAQ: TSLA)

Tesla is a leading EV manufacturer. The company started accepting payments in digital currencies in February 2021 and purchased bitcoin worth US$1.5 billion. However, it has currently suspended the crypto transactions for buying its cars. 

Elon Musk has shown keen interest in digital currencies and claims to own Bitcoin, Ethereum and Dogecoin. For the September quarter of 2021, its revenue was US$13.7 billion, and the operating income was US$2.0 billion. The stock increased by 44.35% YTD.

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Bottomline

The crypto market is growing at a rapid pace. It is currently valued at US$2.5 trillion, with more than 200 million users globally. The market is constantly evolving. And as such, it is expected to develop diversified assets for investors with the help of technological advancements.