Who's Investing In Crypto? Exploring Corporate Crypto Investors

The cryptocurrency market has attracted a wide range of companies, from well-known corporations to smaller startups. These companies vary in their level of involvement in the crypto space, with some investing directly in cryptocurrencies like Bitcoin, while others develop crypto-related products and services or use blockchain technology for various applications.

Some prominent examples of companies with significant exposure to crypto include:

- Microsoft Corporation: The tech giant has shown interest in crypto and blockchain, impacting the market.

- Mastercard Incorporated: Mastercard has explored blockchain technology and digital currencies, including partnerships with crypto companies.

- PayPal Holdings, Inc.: PayPal was one of the first major payment processors to embrace cryptocurrencies, allowing its users to buy, sell, and hold crypto directly.

- MicroStrategy Incorporated: MicroStrategy is known for its massive Bitcoin purchases, adopting it as its primary reserve asset.

- Coinbase Global, Inc.: Coinbase is a leading crypto exchange that went public in 2021, offering an easy way for individuals and institutions to invest in cryptocurrencies.

- Tesla: The electric vehicle manufacturer made waves by investing in Bitcoin and even accepting it as payment for a brief period.

- Riot Platforms, Inc.: Riot is a crypto mining company with a significant Bitcoin treasury, leveraging its mining operations to generate revenue.

- Galaxy Digital Holdings: This crypto-focused merchant bank holds a substantial amount of Bitcoin and is involved in various crypto-related ventures.

These companies represent just a fraction of the diverse range of businesses entering the crypto space. As the industry continues to evolve and mature, it is likely that more companies, big and small, will explore the potential of cryptocurrencies and blockchain technology.

Publicly traded companies that invest in cryptocurrency

Several publicly traded companies are heavily invested in cryptocurrencies like Bitcoin. Here are some examples:

Coinbase Global, Inc.

Coinbase (COIN) runs one of the largest cryptocurrency exchanges in the US. It became the first pure-play crypto trading platform to go public on Wall Street in April 2021. Coinbase allows users to buy, sell, and store cryptocurrencies and NFTs, and also offers access to crypto wallets and a designated Coinbase debit card.

MicroStrategy Inc.

MicroStrategy (MSTR) is an analytics software company that has built up a vast reserve of Bitcoin. As of September 24, 2023, MicroStrategy owned 158,245 Bitcoins. The company has adopted Bitcoin as its primary reserve asset and has aggressively pursued a Bitcoin buying spree, with CEO Michael Saylor claiming that their "Bitcoin strategy" enabled them to outperform rival enterprise software companies.

Marathon Digital Holdings Inc.

Marathon Digital Holdings (MARA) is a company heavily involved in Bitcoin, giving investors a way to gain exposure to the asset without buying it directly. As of September 30, 2023, Marathon owned 13,726 Bitcoins. The company operates a data center with over 2,000 ASIC Bitcoin miners and aims to build the largest Bitcoin mining operation in North America with one of the lowest energy costs.

Block Inc.

Block Inc. (SQ), formerly known as Square, is a financial services and payment processing company. It has several lines of business related to blockchain technology and Bitcoin. Its popular Cash App product allows users to invest in stocks and Bitcoin, and the company holds almost $300 million worth of Bitcoin on its balance sheet.

Riot Platforms Inc.

Riot Blockchain (RIOT) is a company focused on Bitcoin mining, with its facility in Rockdale, Texas, being the largest such operation in North America. By the end of Q3 2023, Riot's mining resulted in a Bitcoin balance of 7,327 coins, worth $255 million.

Advanced Micro Devices Inc.

Advanced Micro Devices (AMD) manufactures computing equipment, including gaming processing units (GPUs) that are often used in cryptocurrency mining. The company has seen increased demand for its products with the growing interest in crypto and has partnered with other blockchain companies to create blockchain gaming and rendering platforms.

PayPal Holdings Inc.

PayPal (PYPL) is a well-known technology company that facilitates digital and mobile payments. It has added crypto payment and investing tools to its PayPal and Venmo apps, allowing users to buy, store, and exchange various cryptocurrencies.

CME Group Inc.

CME Group (CME), formerly the Chicago Mercantile Exchange, operates one of the largest markets for trading futures and derivatives. In late 2017, CME Group was one of the first international stock exchanges to offer trading in Bitcoin futures, opening the door for new investors and exchange-traded funds to enter the crypto community.

SoFi Technologies Inc.

SoFi Technologies (SOFI) is a financial services company offering a range of products, including a secure platform for trading cryptocurrencies. With its vast diversification, SoFi provides investors with exposure to crypto while maintaining a balanced portfolio.

These companies offer investors various ways to gain exposure to cryptocurrencies, whether through direct investments, providing infrastructure for crypto-related activities, or integrating blockchain technology into their existing businesses.

Crypto mining companies

Some of the major players in the crypto mining space include:

• Marathon Digital Holdings Inc.: A Bitcoin mining company that holds 17,631 BTC in its corporate treasury, worth around $1.23 billion as of May 2024. The company aims to become the largest Bitcoin mining operation in North America with one of the lowest energy costs.
• Hut 8 Mining Corp: A Bitcoin mining firm listed on the Nasdaq Global Select Market. It holds 9,109 BTC, worth around $644 million. The company generates fiat income by leveraging its reserve of self-mined and held Bitcoin through yield account arrangements.
• Riot Platforms, Inc.: A U.S.-based crypto mining outfit with 9,084 BTC, valued at $643 million. The company has expanded aggressively, investing in Bitcoin mining facilities and diversifying its business model beyond crypto mining.
• CleanSpark: A U.S. Bitcoin mining firm with 6,154 BTC, worth approximately $439 million as of June 2024. CleanSpark expanded its operations ahead of the 2024 Bitcoin halving, adding multiple mining facilities to increase its mining capacity.

These companies are at the forefront of the crypto mining industry, leveraging their resources and expertise to secure and validate blockchain transactions while also generating profits from their crypto holdings.

Crypto exchange companies

Coinbase:

Coinbase is one of the most popular crypto exchange companies, offering users the ability to buy, sell, and trade a wide range of cryptocurrencies. As of June 2024, Coinbase held 9,000 BTC in its treasury, worth just under $642 million. Coinbase also provides merchant payment solutions, allowing businesses to accept cryptocurrency payments.

Binance:

Binance is another leading crypto exchange, offering a wide range of trading options, including futures, leveraged tokens, and OTC trading. Binance also has its own cryptocurrency, Binance Coin (BNB), which can be used as a payment method on the exchange.

Kraken:

Kraken is a well-established and secure crypto exchange that enables users to buy, sell, and trade a long list of cryptocurrencies against various fiat currencies, including USD, CAD, GBP, and JPY. Kraken was the first exchange to pass a cryptographically verifiable proof-of-reserves audit.

FTX Exchange:

FTX Exchange is a cryptocurrency derivatives exchange that is backed by Binance. It offers a range of trading options, including futures, leveraged tokens, and OTC trading. FTX Exchange is designed to cater to the needs of professional trading firms.

Gemini:

Founded by the Winklevoss twins, Gemini is a trusted next-generation crypto exchange and custodian service. It offers a fully regulated and secure platform for all types of users, from beginner traders to institutions. Gemini provides 14 trading pairs and prides itself on being a highly secure crypto platform.

Crypto investment funds

Crypto Hedge Funds

These are actively managed funds that aim to generate returns by trading cryptocurrencies. They pool capital from individual and institutional investors to purchase digital assets. Crypto hedge funds employ various portfolio weighting strategies and risk management techniques to optimise returns and protect against potential losses. As of 2020, the total assets under management (AUM) in crypto hedge funds were approximately $3.8 billion USD. Examples of crypto hedge funds include Polychain Capital and Digital Currency Group.

Crypto Venture Capital (VC) Funds

Crypto VC funds invest directly in cryptocurrencies or blockchain-related companies, often focusing on early-stage startups. They provide capital and support to young companies in the digital asset ecosystem. Examples of crypto VC funds include Blockchain Capital, Gemini Frontier Fund, and Coinbase Ventures.

Crypto Index Funds

Crypto index funds passively track cryptocurrency indices, providing diversified exposure to the market. They are similar to traditional index funds but focus on specific crypto assets instead of companies. Examples of crypto index funds include the Bitwise 10 Crypto Index Fund and the CRYPTO10 Hedged Index Fund.

Crypto Exchange-Traded Funds (ETFs)

Crypto ETFs are traded on stock exchanges and hold crypto assets. They provide investors with an opportunity to invest in a basket of cryptocurrencies or blockchain companies. The approval of spot bitcoin ETFs by the Securities and Exchange Commission (SEC) has further boosted the popularity of crypto ETFs. Examples of crypto ETFs include the Amplify Transformational Data Sharing ETF and the Fidelity Crypto Industry and Digital Payments ETF.

Crypto payment services

Some popular crypto payment services include Coinbase Commerce, Coinomi, BitPay, Circle Pay, CoinGate, Cryptopay, GoCoin, and Paytomat Wallet. These services support a range of cryptocurrencies, with Bitcoin being the most commonly supported.

When using a crypto payment gateway, customers can opt to make payments in cryptocurrency at checkout. The payment is then instantly converted into the chosen fiat currency by the service provider, who deposits the funds into the merchant's designated bank account at regular intervals. This process ensures that merchants do not have to worry about the volatility of the cryptocurrency markets.

Overall, crypto payment services play a crucial role in facilitating cryptocurrency transactions and enabling businesses to accept digital currencies as a form of payment.

Frequently asked questions