Today investors got a whole new way to profit from Bitcoin (CCC:BTC). Electric vehicle leader Tesla (NASDAQ:TSLA) made a $1.5 billion investment, turning TSLA stock into a play on the leading cryptocurrency. For investors who may feel bullish on the crypto space but are not comfortable with directly buying Bitcoin, a straightforward equity may be more appealing. With that in mind, here is a look at Tesla and eight other non-crypto stocks benefitting from BTC exposure.
Before you dive into the list of non-crypto stocks to watch, you should be familiar with the story here. Tesla invested $1.5 billion in Bitcoin, and also outlined plans to allow customers to purchase products with the cryptocurrency. That is a huge sign of mainstream support, and many analysts expect other mega-cap companies to follow suit. With that in mind, bulls took Bitcoin to an all-time high of $44,801.87. They also sparked rallies on other beneficiaries, including stocks that have exposure to BTC.
Why not just buy Bitcoin? As Ethan Wolff-Mann wrote for Yahoo Finance, not every investor is interested in dealing directly with cryptos. There is a learning curve, and something like a lost digital wallet password could cost you millions. While the upcoming Coinbase IPO will offer investors access to a popular cryptocurrency exchange, it has yet to debut.
For now then, that means these non-crypto stocks are a great way to ride the Bitcoin boom and buy yourself some BTC exposure. Keep these nine names on your watch list:
9 Non-Crypto Stocks to Buy for the Bitcoin Boom
- Tesla (NASDAQ:TSLA). With the news today, investors now know that Tesla represents a $1.5 billion investment in Bitcoin. Additionally, for those in favor of bullish Bitcoin price predictions, Tesla could be a key to success. As the company rolls out cryptocurrency payment plans, mainstream support will only continue to grow.
- PayPal (NASDAQ:PYPL). PayPal does not hold any Bitcoin on its balance sheet, but it is another play on growing mainstream support. The company will allow customers to buy and hold cryptocurrencies in their digital wallets. Additionally, it will roll out crypto payments features on its peer-to-peer payments app Venmo.
- Square (NYSE:SQ). Square is working to be a one-stop financial shop. It represents a new era of decentralized finance, allows customers to buy and sell cryptocurrencies through its Cash App, and it also keeps about $200 million of Bitcoin on its balance sheet.
- Marathon Patent Group (NASDAQ:MARA). MARA stock is typically a Bitcoin mining play, which also may attract investors here. However, at the end of January, the company announced its intent to become a pure play. To do so, it made a $150 million investment in Bitcoin.
- Grayscale Bitcoin Trust (OTCMKTS:GBTC). GBTC solely invests in Bitcoin and trades over the counter. Importantly, it is the first investment vehicle in digital currencies that has SEC reporting company status.
- MicroStrategy (NASDAQ:MSTR). MicroStrategy is a business intelligence company, but it also holds more than $3 billion in Bitcoin on its balance sheet. Citron Research also named it the best way to play Bitcoin in November 2020. Since then, MSTR stock is up more than 300%.
- Mogo (NASDAQ:MOGO). The Canadian fintech announced it would invest $1.5 billion in Bitcoin in December 2020. That represents roughly 1.5% of its assets.
- Silvergate Capital (NYSE:SI). SI is a banking play that focuses on digital assets. According to Wolff-Mann, it currently has deposits of roughly $5 billion in Bitcoin.
- Galaxy Holdings (OTCMKTS:BRPHF). Galaxy is an investment company focusing on digital currencies. It holds approximately $718 million in Bitcoin.
The Bottom Line on Non-Crypto Stocks
So how should you view these non-crypto stocks? Well, on one hand they are an attractive options for investors unwilling or uncomfortable with the idea of directly buying Bitcoin. On the other hand, for crypto bulls, they are adjacent plays to ride the rally.
Remember, many experts think that the all-time high for Bitcoin today is only one stop on a much longer journey. In fact, some of the latest Bitcoin price predictions call for BTC to cross $100,000, $300,000 and even $600,000. As Guggenheim CIO Scott Minerd recently argued, as long as institutional support continues to grow, all of the cards are lined up for an exponential rally.
Tesla is once again leading the way today, highlighting an appealing avenue to invest in Bitcoin. And as far as InvestorPlace analyst Luke Lango can tell, the move is bullish for both TSLA and BTC. Keep an eye on these other non-crypto stocks and rising Bitcoin price predictions. A DeFi revolution could very well be underway.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.