Companies are quickly embracing the future of cryptos, several public companies have invested into Bitcoin (CC: BTC-USD) and Ethereum (CC: ETH-USD). If you are an investor considering investing indirectly into digital currencies, here are seven companies to consider: Tesla (NASDAQ: TSLA), Square (NYSE: SQ), MicroStrategy (NASDAQ: MSTR), Marathon Digital Holdings (NASDAQ: MARA), Galaxy Digital Holdings (OTCMKTS: BRPHF), Grayscale Bitcoin Trust (OTCMKTS: ETHE), and Coinbase Global (NASDAQ: COIN).
(1) Tesla (NASDAQ:TSLA)
Tesla has a large cryptocurrency investment worth 2.35 billion. Tesla started buying bitcoin in January 2021 with the first purchasing amounting to $1.5 billion. On March 23, Tesla announced it will begin accepting bitcoin as a form of payment in the future. The investment is not small given that the company only had $19.384 billion cash reserve in the bank. Thus Tesla’s bitcoin investment is equivalent to 12 percent of its cash reserve.
The company may have bought more Bitcoin or Ethereum. Tesla may continue adding cryptocurrencies to its cash stockpile in days to come. The company is using its software and is not relying on a third-party network or wallet. Their bitcoin investment may grow from their sale of electric vehicles.
(2) Square (NYSE: SQ)
The company deals with the sale of bitcoin. In 2020, the company bought bitcoin worth $50 million and recently added bitcoin worth $170 million. The company now owns 8, 027 bitcoin assets. The assets are now worth $468.46 million, which represents a 112 percent gain from its original investment of $220 million. The company has a $3.15 billion cash reserve and thus the bitcoin investments represent 15 percent of its liquid investments.
The company is also promoting the sale and purchasing of bitcoin through its popular Cash App. In the past year, more than three million people bought and sold bitcoin in their App. Their bitcoin revenue also increase 9.7 times in 2020. The company only makes a small revenue as a transaction fee, that margin was about 2.3 percent of its revenue in the fourth quarter in 2020.
(3) MicroStrategy (NASDAQ: MSTR)
In April, the company purchased 253 bitcoin worth $15 million. Over the past year, the company has bought 91, 579 bitcoin which is about 2.226 billion in cash. The company is very serious about digital assets. The company has a market capitalization of $6.8 billion and a bitcoin investment worth $5.3445 billion. That is equivalent to 78 percent of its market value.
(4) Marathon Digital Holdings (NASDAQ: MARA)
The company has a market capitalization of $4.8 billion. The bitcoin mining firm produced 196 Bitcoins in the first quarter of 2021. At the moment, the company has 5, 134.2 bitcoins in its treasury. For $58, 360 per bitcoin, the company bitcoins are worth $299.4 million.
Provided that Marathon Digital’s Bitcoin holding has adequate miners, the company will continue increasing its production. The company will also continue growing whether the bitcoin price remains the same or increase.
(5) Galaxy Digital Holdings Ltd (NASDAQ: BRPHF)
The company has a market capitalization of $7.69 billion. The company is both an asset management firm and a merchant bank. It has its investment in bitcoin and other cryptocurrencies. Michael Novogratz, the fund manager, hinted that Ethereum and not bitcoin will be used as a digital currency in the next five years. Galaxy owns 4, 000 bitcoins which in today’s price are worth $233.28 million. This is about 3 percent of its capitalization.
(6) Grayscale Bitcoin Trust (NASDAQ: GBTC0
The bitcoin trust is the largest institutional fund that has invested in bitcoin. It currently manages $34 billion in bitcoin, Ethereum, and other digital cryptocurrencies. The company has announced that it intends to become an ETF.
(7) Coinbase Global (NASDAQ: COIN)
The company has about $100 billion in capitalization. The digital exchange company provides the storage, spending, and earning in more than 40 crypto assets. In 2020, the company made $1.3 billion in revenue. The company has 43 million users who make about 3 million transactions in a month. The company is expected to have 56 million users by December and about 6.1 million transactions in a month.