Optimism has returned to cryptocurrency market, leaving crypto investors looking forward to the next crypto bull run. This is partially because the Securities and Exchange Commission’s (SEC) long-awaited spot Bitcoin (BTC-USD) ETF approval was finally confirmed. In the four days that followed the approval, the cumulative volume for the 11 spot Bitcoin ETFs surpassed $11.1 billion.
This, combined with the upcoming Bitcoin halving event — a cyclical process that halves the BTC rewards distributed to crypto miners and has historically signaled a crypto bull run — has led to predictions that a fresh all-time high is on the horizon.
Geoff Kendrick, Standard Chartered’s head of digital assets, has suggested that the SEC’s spot Bitcoin ETF approval will see BTC reach a value of almost $200,000 by the end of 2025. Such a seismic estimate would require Bitcoin’s market capitalization to climb to $2.6 trillion. This represents an influx that’s set to drive non-native cryptocurrency stocks higher as a result.
These stocks could offer greater solace to investors who want to add crypto exposure to their portfolios without the risk. With these stocks, investors will not have to rely on cryptocurrency exchanges, counterparty risk or unfamiliar industry processes.
MicroStrategy (MSTR)
Founded in 1989 as a business intelligence software company, MicroStrategy (NASDAQ:MSTR) has evolved to become a form of Bitcoin proxy for Wall Street investors.
Guided by co-founder Michael Sailor, MicroStrategy holds 189,150 BTC as of December 2023 and this investment strategy has caused MSTR to grow by over 90% throughout the past year.
“The reason we decided to buy Bitcoin is because Bitcoin represents a form of digital gold,” explained Saylor when initially announcing the company’s crypto-focused strategy. “It’s harder than gold. It’s smarter, it’s stronger, it’s faster than gold.”
The vast majority of MicroStrategy’s market capitalization is Bitcoin. Therefore, the software firm is an excellent option for investors to gain exposure to cryptocurrency markets without having to go through the rigmarole of navigating the crypto landscape and using cryptocurrency exchanges.
For investors, this can be a major benefit of MSTR. Trust in crypto took a significant knock during the high-profile collapse of the FTX exchange. Reports of wallets being targeted by cybercriminals may steer investors to embrace MicroStrategy’s safe entry point.
In addition to this, MicroStrategy’s fundamentals appear promising. The firm’s Q3 2023 revenue was $129.5 million, representing a 3% increase year-over-year. Meanwhile, MicroStrategy’s consolidated statement of operations was $45 million, equating to a 16% increase year-over-year.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) needs little introduction following an astonishing 2023 performance. The semiconductor giant has been buoyed by the generative artificial intelligence (AI) boom. It experienced almost 200% growth over the past year to achieve a market capitalization of over $1.5 trillion.
The market position of Nvidia has been solidified by the firm’s status as a market leader in the production of graphic processing units (GPUs).
This status has helped the company to create the GPUs that are set to support the widespread adoption of generative AI software by enterprises in the future. However, these processors are also likely to become essential in cryptocurrency mining and production.
On an operational level, Nvidia is making good use of its newfound status as a generative AI leader. The company’s return on equity stands at 57%, comfortably surpassing the industry average of 15%.
This helps to clarify Nvidia’s five-year net income growth of 28%. Additionally, it provides the semiconductor leaders with a strong platform to continue innovating ahead of its industry rivals.
Block (SQ)
Block (NYSE:SQ) has evolved to add high levels of exposure to cryptocurrencies in recent years.
Known best as a payments provider, Block’s CashApp offers users a convenient way of buying, selling and transferring crypto. Co-founder, Jack Dorsey, is a keen cryptocurrency enthusiast. Investors are likely to see Block’s relationship with assets like Bitcoin strengthen in the future.
According to Block’s Q3 2023 earnings, the firm’s total net revenue reached $5.62 billion in the quarter, representing a 24% increase year-over-year. Crucially, Bitcoin revenue accounted for 43% of net revenue.
With the company’s profit increasing 21% year-over-year to $1.9 billion and its flagship product, CashApp showcasing 27% growth and profits of $984 million, Block represents a strong stock that’s likely to see plenty of upside in a cryptocurrency bull market.
On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
