Public companies with exposure to the crypto space
4 stars based on
73 reviews
The prices of crypto-related assets like Bitcoin have skyrocketed in recent months and many speculative investors understandably appear to want upside exposure to the space. However, the risk of a downwards correction is high, in our view. In this piece, we look at a potentially lower-risk method of obtaining upside by presenting a selection of listed equities which have some exposure and businesses in other areas.
For example, potentially another four-year cycle of weak prices could be driven by the Bitcoin halving schedule. Existing investors in alchip bitcoin stock space may wish to take some profits but still retain some upside exposure, and new investors in the space may wish to obtain some upside exposure while mitigating some of the downside risks.
Here is a list of alchip bitcoin stock companies with some business segments driven by crypto-related areas, which may benefit from further crypto price appreciation but which have other businesses that could mitigate the downside risks. Before investing in any of these, you should obviously do more research on your own: A slightly more detailed look into the companies TSMC.
This piece does not constitute investment advice. You should do your own research before deciding to make any investments. Skip to content Abstract: Investing in TSMC is likely to be a good way of obtaining some moderate upside exposure to crypto while significantly mitigating or eliminating the downside risk. TSMC is a pure play, focusing entirely on integrated-circuit fabrication.
However, with crypto prices continuing to alchip bitcoin stock, it is likely that this business segment is growing very fast. In our view, the company is likely to be able to achieve similar margins in the crypto business. With current crypto prices, miners and ASIC designers are likely alchip bitcoin stock to make very large orders with TSMC, which could mean significant sales growth next year.
If the crypto prices increase significantly, orders in could be very strong. Alchip bitcoin stock mining is a challenging and competitive alchip bitcoin stock, and much of the profit could end up at the company supplying the key equipment.
TSMC is well positioned to benefit regardless alchip bitcoin stock mining company becomes dominant. The company has never cut its dividend and this should support the share price if the market weakens.
TSMC is very focused on the core business as a semiconductor foundry and will not be distracted by investing in other blockchain related areas like ICOs or Ripple.
In our view, companies with focus tend to perform better over the long term. TSMC are believed to currently have only one crypto-mining client, Bitmain, so there is significant customer concentration risk.
Alchip may merit further investigation to establish the significance alchip bitcoin stock the crypto business. We do not know how significant crypto mining is for this company. This company is less well known and therefore the upside from strong crypto growth in could be significant. The earnings track record is unreliable, with the company making loses in The order outlook is said to have poor visibility relative to some other companies.
Therefore, GMO Financial could represent an interesting investment opportunity. Therefore, the shares are not very liquid. GMO Financial offers more direct exposure to the crypto-exchange business than the parent.
The exchange business is reasonably new and therefore has considerable growth potential. The FX trading-platform business is the largest retail platform in Alchip bitcoin stock, therefore GMO Financial may already have the infrastructure and expertise to build a successful crypto exchange.
The exchange plans alchip bitcoin stock offer a leveraged product shortly. We have not been able to identify any trading-volume data at GMO Coin, therefore the market share is likely to be low.
Alchip bitcoin stock, a recent company presentation indicates that growth is strong. Valuation ratios alchip bitcoin stock reasonably expensive and the stock price may alchip bitcoin stock reflect the benefits of crypto. The mining business could become more competitive inmaking ASIC design key. If crypto prices increase inGUC is likely to perform well. There is significant downside risk if crypto markets collapse but this is still less risky than actually holding crypto tokens. GMO Internet appears to lack focus in their crypto endeavors, therefore GMO Financial may represent be a better investment opportunity.
GMO Internet is a group of Alchip bitcoin stock companies based in internet infrastructure and digital payments. The main business lines of the company are online credit-card transaction processing, domain-name services, and SSL certificates. The company also has a subsidiary called GMO Coina crypto exchange. GMO offers broad exposure to different areas in crypto, ICOs, mining, and the operation of exchanges. The company is entering competitive fields and GMO appear to lack focus by trying many different areas at the same time.
They may not succeed alchip bitcoin stock all ambitions. The company may lack focus in the crypto space and the stock may already be rallying as a result of the crypto alchip bitcoin stock. Overstock is an American e-commerce company focused on alchip bitcoin stock and bedding.
This may stem from his anti-Wall Street stance, which itself grew after several prominent investment banks and hedge funds were accused of targeting Overstock with a naked short selling campaign in Bryan was eventually mostly vindicated after winning a payout in a settlement alchip bitcoin stock the issue.
Overstock first accepted Bitcoin payments in and became involved in several projects, including the Counterparty platform in and then the tZERO platform, which first launched Overstock stock as an instrument in and is currently building a distributed ledger system.
Overstock offers broad exposure to the space. Investment risks Like many of the companies mentioned in this list, Overstock seems to lack focus and is experimenting with various crypto related ideas. The crypto story may already be well understood by the investment community and there may be considerable downside risk due to the valuation rating.
Square is a digital-payment-solutions company based in the US. Square recently announced the launch of a new product that allows alchip bitcoin stock to buy and sell Bitcoin on a mobile application. The new Bitcoin application has received positive feedback since the launch for its ease of use. The alchip bitcoin stock is very expensive based on traditional valuation metrics.
The Bitcoin application does not offer users the ability to send payments on the Bitcoin network by itself. A strong alchip bitcoin stock business may cannibalise earnings from other areas, so the crypto-related upside may be limited. Due to their high volatility, crypto-related trading products are offered and are likely to be contributing to earnings as the volatility of other products is lower.
IG is one of the largest and strongest CFD companies in the retail space. One of the big challenges for the company is the regulatory environment in the UK and Europe. The retail leveraged trading industry is under close scrutiny by regulators.
Plus is a UK-based online retail trading platform. However, customer retention at Plus is improving and there is increased focus on loyal, higher-value customers rather than on speculative clients who may lose all their money alchip bitcoin stock leave.
One could consider a pair trade, long Digital Garage and short Kakaku. Digital Garage is a Japanese technology investment fund, with the primary asset being a price-comparison website called Kakaku.
Digital Garage also has an investment in the blockchain-infrastructure company Blockstream. The company seems focused on technology and infrastructure rather than on commercialisation and therefore may not be able to generate earnings. The link to Blockstream is very limited. The link to the crypto space alchip bitcoin stock be too weak.
Premium Water is a high-growth mineral-water delivery company alchip bitcoin stock Japan, delivering water to the home and office markets. It is possible that the company could raise a significant amount of funds in an ICO and there is a chance that existing shareholders may benefit from this.
It is not clear how existing shareholders will directly benefit from the ICO, if at all. Crypto is not likely to be a significant earnings driver. CME Group operates an institutional derivatives exchange that deals with futures contracts and options. The instruments are related to interest rates, stock indexes, FX, and commodities. The company recently announced the launch of Bitcoin futures contracts. Financial speculation alchip bitcoin stock to be one of the main activities Bitcoin is used for and the launch of a Bitcoin product could therefore lead to significant volume growth for the CME.
CBOE operates an institutional financial-options-trading platform. The main instruments are related to FX and stock indexes. Similar to the CME, financial speculation appears to be one of the main activities Bitcoin is used for, and the launch of a Bitcoin product could therefore lead to significant volume growth for CBOE.
We do not recommend investing in SBI. SBI Holdings is a Japanese financial company whose main business is the domestic online stock-trading platform. SBI holdings appears enthusiastic about the crypto space. SBI plans to make further investments, including into Bitcoin mining.
SBI Holdings offers broad exposure to many areas in the space. This may indicate that SBI has limited knowledge about the crypto space or that the company may be wasting shareholder funds, by partnering with Wright.
SBI also appears to lack focus in its blockchain strategy. Potentially preparing for its own cryptocurrency exchange. No JP Metaps No JP Remixpoint No JP Infoteria Alliance with the Kraken exchange. Exchange and deal with MonaCoin. Manufactures and markets motherboards, graphics cards, and other computer peripherals. No TT Gigabyte Tech 1,
