The cryptocurrency space is gradually becoming like the US stock market, and now engaging in cryptocurrencies requires understanding the US stock market as well.
With the existence of Bitcoin ETFs, Bitcoin was previously very close to the US stock market, but now people in the cryptocurrency industry are starting to get involved in the US stock market.
Let's take a look at which "crypto stocks" are worth paying attention to right now.
The entire crypto stock market can be divided into four categories:
The first category is stablecoin concept stocks, with Circle as the benchmark.
However, Circle currently has a very high premium, with a total market capitalization reaching $58 billion, which is hard for people in the crypto space to understand, but traditional finance individuals are still aggressively investing. @circle
In addition to Circle, other companies worth noting include Tether (a non-public company but USDT dominates the market) and Paxos (issues Pax Dollar and PayPal USD).
The second category is trading platforms, with Coinbase as the benchmark.
Coinbase's assets have already been priced too high, with a stable valuation and limited growth potential. @coinbase
Besides Coinbase, other companies worth keeping an eye on include Robinhood and Kraken.
Robinhood is traditionally a stock trading platform but is actively expanding into cryptocurrencies and has just acquired Bitstamp.
Kraken is the second-ranked compliant exchange in the US, has not yet gone public, and is planning an IPO, which could be promising if successful.
The third category consists of mining stocks that engage in Bitcoin mining.
Typical representatives include Riot Platforms (RIOT), Marathon Digital Holdings (MARA), and CleanSpark (CLSK).
Mining stocks are cyclical; losses are significant in a cryptocurrency bear market, while gains are high in a bull market.
Due to reliance on computing power and energy costs, they will be subject to environmental policy pressures.
In the long run, the enhancement of Bitcoin's status as a reserve asset is still favorable for mining stocks.
The fourth category is cryptocurrency treasuries, represented by MicroStrategy.
MicroStrategy pioneered the "financing-buying coins-pumping" model, raising funds in the market and leveraging to buy BTC. @Strategy
Currently, there are also Ethereum MicroStrategy, Solana MicroStrategy, TRON MicroStrategy, etc.
Many leading cryptocurrency companies are buying shell companies in the US stock market to raise funds and reverse purchase cryptocurrencies.
This greatly tests the fundraising capabilities of cryptocurrency companies, as they need to have funds available, like MicroStrategy.
For example, the Ethereum core circle bought SharpLink, and TRON's Justin Sun invested in SRM Entertainment.
However, these two cases are different; the former raises funds from the market to purchase Ethereum, while the latter injects stablecoins and TRX into the stock company and then cashes out in USD.
Therefore, assets like SRM may carry potential compliance risks.
To summarize:
Stablecoins and trading platforms represent "infrastructure" investments, while mining stocks and cryptocurrency treasuries are more like "high-risk, high-return" speculative assets.
The risks associated with these four categories of crypto stocks are different:
(1) Stablecoin concept carries the lowest risk but has limited growth potential, suitable for institutional investors seeking stable returns.
(2) Trading platforms are highly valued, requiring attention to ecological expansion capabilities, suitable for investors optimistic about the long-term growth of the crypto market.
(3) Mining stocks are highly cyclical, requiring attention to energy and regulatory pressures, suitable for cyclical traders but should dynamically adjust positions based on Bitcoin prices and energy costs.
(4) Cryptocurrency treasuries have the strongest explosive potential, but also the highest leverage and regulatory risks, suitable for high-risk-tolerant speculators who need to conduct in-depth research on a company's fundraising abilities.
Crypto stocks are merging; on one side, stock assets are being tokenized, and on the other, crypto assets are being listed, with liquidity between the two markets being mutually accessible.
We ordinary retail investors also need to adjust our mindset and start learning about the US stock market!
