These companies offer exposure to Bitcoin without the need for BTC

Many investors, especially after the recent approval by the American SEC of ETFs based on BTC, are interested in investing in Bitcoin. They expect that the price of Bitcoin will increase significantly in the context of positive market sentiment and the environment around the asset for some time already. Investors do not want to be deprived of the opportunity to participate in this growth story. However, investing in Bitcoin, and indeed in other cryptographic assets, is often considered by many as a habitual choice.

Some think that this would require additional efforts to ensure the security of digital assets through security services and portfolios. Some think that tracking digital assets, their growth potential and their current performances could become cumbersome. Some doubt whether they have sufficient knowledge of the material of blockchain and cryptocurrency to invest in one of the most performant assets in this domain.

All these things give rise to a dilemma. Even if investors wish to participate in the growth of Bitcoin, they are sure that maintaining this investment in their portfolio represents an excessive effort. Therefore, they wish to localize reliable assets that are publicly traded on the exchange and that present a substantial exposure to Bitcoin in their balances. This way, they could benefit from the growth of Bitcoin without having to own and hold it directly.

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We have compiled here a list of five companies that offer reliable exposure to Bitcoin without investors having to wait for it.

#1. MicroStrategy

Microstrategy’s actions have increased by nearly 250% over the last five years. On January 25, 2019, for example, these shares traded at an average price of 139.40 US dollars. On January 19, 2024, this price has passed to 481 American dollars, an increase of 245%. Bitcoin plays a crucial role in the balance of Microstrategy. And, therefore, to be part of the growth of Microstrategy, is to expose the history of the growth of Bitcoin without really retaining it.

Microstrategy is a NASDAQ-listed company that aims to be the largest independent business intelligence company listed on the stock exchange. The company announced its third quarter 2023 financial results on November 1, 2023. At the time of the publication of the data, the company proposed a daily disclosure of its assets in Bitcoin.

graphique dynamique finviz pour MSTR

In the third quarter of 2023, the company increased its total holdings in bitcoins to 158,400 bitcoins, or an additional 6,067 bitcoins since the end of the second quarter. This purchase cost the enterprise 167.0 million dollars, which is equivalent to 27 531 dollars per bitcoin. The total assets of 158,400 bitcoins result in a total cost of 4,69 billion dollars, so 29 586 dollars per bitcoin. In terms of revenues, MicroStrategy has recorded a turnover of 129.5 million dollars in the third quarter of 2023, an increase of 3% over a year. Microstrategy continues to be optimistic about its Bitcoin strategy.

According to Andrew Kang, financial director of Microstrategy:

“Our engagement to acquire and preserve Bitcoin remains strong, especially in the context promising an eventual increased institutional adoption.”

Bitcoin is one of two enterprise strategies pursued by MicroStrategy. It wishes to pursue the acquisition and custody of Bitcoin, which it considers as a reliable reserve of value supported by a « robust, public and open source architecture, independent of sovereign monetary policy ».

#2. Coinbase

Coinbase Global, Inc., trading under the name COIN on NASDAQ, is another action that has performed extremely well. If we consider their performances during the last year, we observe that their prices have doubled. On January 16, 2023, Coinbase Global traded at $55.16 US. On January 19, 2024, the price had risen to around US$125.

Coinbase is a globally known exchange that began its journey in 2012, which is more than ten years. Until now, it has recorded approximately 76 billion dollars of quarterly trading volume and 114 billion dollars of protected assets, with operations in more than 100 countries and managed by more than 3,400 employees.

Having tasted the success of Coinbase, it is also – indirectly – tasting the success of Bitcoin. According to an identification exercise conducted on the blockchain research platform Arkham, Coinbase found nearly a million bitcoins in its portfolios, with a value of more than 25 billion dollars.

Given that Bitcoin has a circulation of around 20 million, Coinbase occupies around 5% of all existing bitcoins. Additionally, Coinbase has currently used nearly 36 million Bitcoin deposits and addresses. When trying to own bitcoins, the exchange takes about 10,000 of all the bitcoins.

If we look at the dollar value of these bitcoins, according to the latest report on the results of the third quarter of 2023, Coinbase found about 127 million dollars of Bitcoin in that amount of investments, a significant increase on the report at the end of The year 2022, where it will rise to a little more than 111,5 million dollars. Coinbase also received more than 11.5 million dollars of Bitcoins for exploitation, so almost double the value at the end of the year 2022, which was 5.4 million dollars.

#3. Anti-Emmute Platforms

Regarding Coinbase and MicroStrategy, Platforms Anti-Emmeutes, Inc.. is closest to the world of Bitcoin. The stated vision of the company is to build the first infrastructure platform based on Bitcoin in the world.

Riot Platform owns and exploits the largest installation of Bitcoin miners in North America, measured by developed capacity.

graphique dynamique finviz pour RIOT

The company is listed on NASDAQ. It is sold under the ticker RIOT. During the last year, RIOT has experienced a notable appreciation of prices. For example, on January 16, 2023, RIOT had a price of $6.20 US. It has passed at $10,29 US on January 19, 2024.

It published its last financial statements on November 7, 2023, in the form of a quarterly report for the third quarter of 2023. The company stated that its financial position and its liquidity were «solid». It detained 7,327 bitcoins as of 30 September 2023.

The estimated fair value of « Bitcoin held », based on the application of the market price of a Bitcoin on September 30, 2023, of around 26 968 $ and 7 327 Bitcoins held by the Society, was 198 million American dollars. The company’s increase to 7,327 bitcoins represents an increase of 8% on an annual basis.

#4.Marathon Digital Holdings, Inc.

At the time of writing this article, the growth since the beginning of the year Course de Marathon Digital Holding has more than doubled. For example, on January 23, 2023, Marathon Digital, quoted under the name MARA on NASDAQ, had a price of 8,02 $ US. On January 22, 2024, the price reached 16,43 $ US.

Marathon Digital Holdings claims to be one of the « Bitcoin mining companies with the largest, most economical energy and the most technologically advanced ». At the same time, the company declared itself one of the largest holders of Bitcoin among the companies quoted on the stock exchange in North America.

graphique dynamique finviz pour MARA

The company published its last financial results, for the third quarter of 2023, on 8 November 2023. Marathon Digital announced a turnover figure of 97,8 million US dollars for the quarter, net superior to the revenues of the third quarter of 2022 of 12,7 million dollars. The growth was attributed to an increase of 467% in the production of bitcoins, further amplified by an increase of 32% in the average price of bitcoin over the period.

At the end of the year 2023, Marathon Digital Holdings reported more than 15,000 bitcoins in cash. The presence of bitcoins in its account allows Marathon Digital to prosper. The financial report of the third quarter of 2023 highlighted that the company had reduced its long-term debt by 56% and realized a total of close to $101 million of cash savings for its shareholders. For the first time in two years, the company’s assets combined in liquidity and bitcoins exceeded its declared debt at the end of the quarter.

#5. Hut 8 Mining Corp.

Cabane 8 aims to provide infrastructure and solutions that will strengthen the global technological ecosystem, thus facilitating the transition towards the next industrial revolution. It claims to be the first company to exploit a computer infrastructure on its sites that exploits Bitcoin and provides cloud and colocation services to its customers. It is the first Canadian data exploration company to be present on NASDAQ and is also a leader in the field of HODLing auto-exploited bitcoins.

graphique dynamique finviz pour HUT

The latest financial results published by the company were in the form of an intermediate financial report for the nine months ended September 30, 2023. According to these statements, the company holds approximately 265 million Canadian dollars of bitcoins in some digital assets.

The volume represents a significant increase relative to the 204 million Canadian dollars of bitcoins held at the end of the year 2022. However, the company has observed a decline in the number of bitcoins held, which passed from 9 086 on December 31, 2022. à 7 269. le 30 septembre 2023.

The shares of Hut 8 Corporation (HUT) have experienced moderate growth in prices over the last five years. On February 1, 2019, the price was $4.91 US, then it increased to $6.81 on January 22, 2024.

While companies holding a significant number of bitcoins in their balances achieve very good results on the stock exchange, investors should continue to search for new opportunities.

The public initial offers are the best in such cases of chasing opportunities. An imminent introduction on the exchange that has aroused a lot of anticipation and enthusiasm among investors wishing to be exposed to Bitcoin without having to hold directly is the cell of Circle.

The circle is the issuer of the largest and most widely used stablecoin, tied to the American dollar, USDC. The USDC facilitates the lives of millions of users, enterprises and developers around the world by shortening settlement times thanks to significantly faster payments. The USDCs are fully programmable, active 24h/24 and 7j/7 and incur a cost close to zero. Its global partners include VISA, Blackrock, BNY Mellon, MasterCard, Coinbase and many other pillars in the field of traditional finance and crypto-currencies.

On January 11, 2024, Circle filed a request for an introduction to the stock exchange with the American SEC. The quotation is in place as soon as the SEC concludes its examination. The examination is subject to market conditions and other conditions.

This is the second time that Circle has opted for a public quotation. Last fall, the company attempted to enter the stock market based on a SPAC with Concord Acquisition Corp. within the framework of an agreement that would have brought the value of the company to 9 billion dollars. The choices are not as troubling as expected. However, this time, the introduction of the stock exchange, if it is concrete, will take place in a milieu of much hope and enthusiasm for cryptography enterprises. The approval of the current Bitcoin ETF by the American SEC has created a very positive sentiment among investors around digital assets and Bitcoin.

According to Circle’s declaration of registration of titles to be issued within the framework of transactions of grouping enterprises, published on 14 November 2022, Bitcoin held as digital assets on Circle had a combined value of 294 million American dollars on 30 June 2022. This represents a significant increase about the 195 million US dollars held by the company. Until 31 December 2021.

The future of exposure to Bitcoin

The interest in exposure to Bitcoin is increasing. Bitcoin dominates almost half of the capitalization of cryptocurrencies. Its price is also on a steep ascension curve. Its price was lower than 23 000 dollars a year ago, and it is now surpassing the 40 000 dollars American bar and sometimes even surpassing the bar of 45 000 dollars US.

The approval of at least 11 ETFs based on Bitcoin by the American SEC allows it to gain confidence, especially on the part of large-scale institutional investors who are concerned about the impact of climate regulation on their prices. The approved ETFs have also improved the morale of individual investors.

Many companies have bitcoins in their balance and are increasing their number of assets in an exponentially greater manner. Global leaders like Tesla and Block also consider Bitcoin in their composition of assets.

The expected rise in the price of Bitcoin in the coming days will strengthen the value of these companies. Investing in these titles via stock-quoted shares will help many investors benefit from the growth of Bitcoin without needing to hold BTC.


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