The value of cryptocurrencies fluctuates from time to time, affecting prices of related stocks. Crypto stocks are stocks of public companies dealing directly or indirectly with cryptocurrencies. A rise in price of a certain cryptocurrency may lead to an increase in the value of certain crypto stocks and vice versa.
As a result, experts predict crypto stocks which may dominate the market in 2021 and beyond. Among the top rated stocks are PayPal (NASDAQ:PYPL), Square (NYSE:SQ, MicroStrategy (NASDAQ:MSTR), Riot Blockchain (NASDAQ:RIOT), Facebook (NASDAQ:FB), CME Group (NASDAQ:CME), Grayscale Bitcoin ETF (OTCMKTS: GBTC) and more.
PayPal, one of the top payment processors globally, allows people to buy cryptocurrencies using its system. Currently, individuals and entities can purchase only major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. In the future, it will increase the number of digital assets, which people can buy and sell using PayPal. Therefore, investors anticipate PayPal’s new crypto business to boom, resulting in more investment in its stock, (NASDAQ:PYPL).
- Market Cap: $259.6 billion
- Earnings growth rate: 121%
Many investors are likely to demand a large volume of Square’s stocks (NYSE:SQ) since Square, a mobile payment processor, is well-known for its point of sale software and hardware. It processes transactions executed through credit and debit cards for different merchants. More importantly, it enables customers to buy and sell Bitcoin using its Cash App. For example, in 2018 it racked in $37 million in revenue from its Bitcoin trading business.
- Market Cap: $99.2 billion
- Earnings growth rate: 24.2%
MicroStrategy stocks are most likely to firm in 2021 and beyond because of its huge investment in Bitcoins. As a fact, MicroStrategy buys and holds Bitcoin rather than trading it. After the initial investment of $47 million, MicroStrategy invested additional $650 million in bitcoins.
According to Bloomberg.com, MicroStrategy holds bitcoins worth $38 250 billion. As a result, there is a possibility of a higher demand for its stocks in 2021 than in 2020.
Facebook, a giant in social media technology, has a very promising stock (NASDAQ:FB). This is because within the last two decades Facebook expanded remarkably, through Messenger, Whatsapp, and Instagram.
Recently, it introduced a new expansion path, venturing into cryptocurrency. It developed its cryptocurrency, formerly called Libra, now known as Diem. As soon as it launches this cryptocurrency, we expect a high rise in value of its stocks.
- Market Cap: $780 billion
This is another company with a very promising crypto stock as it mines cryptocurrencies. Specifically, it supports the bitcoin blockchain through participating in the bitcoin consensus protocol, through mining. It aims to become the largest yet lowest cost producer of bitcoins in North America. As a result, its stock value is likely to increase in 2021.
CME Group (NASDAQ:CME)
CME Group emerged from a merger of the Chicago Mercantile Exchange and the Chicago Board of Trade in 2007. It is probably the world’s biggest trading platform for derivatives. Therefore, hordes of investors trade in futures and options related to various sectors such as currencies, energy, stocks, agricultural and mining products.
Apart from these, it also has a market for bitcoin futures and options. As the list of merchants that accept bitcoins grows, the value of CME Group stocks is likely to rise.
- Market Cap $64. 06 billions
- Volume: 475.26k
HIVE Blockchain Company, based in Toronto, is a cryptocurrency mining company. It is a partnership between Genesis Mining and Foire Group and has modern cryptocurrency mining sites in Iceland and Sweden. It mines different cryptocurrencies.
- Market Cap: $130 million
Other crypto mining companies
There are other crypto mining companies whose stocks are expected to perform well in 2021 and beyond. Examples of these companies are Northern Bitcoin (NB2), Bitcoin Services Inc. (BTCS) and MGT Capital Investments (MGTI),
However, there are other diverse companies whose stocks are likely to perform well in 2021.
AMD: Advanced Micro Devices (AMD) provides GPU for mining cryptocurrencies. It also offers PC and gaming equipment.
Overstock (OSTK): This is a United States-based online retailer which accepts bitcoin for its transactions.
Grayscale Bitcoin ETF (GBTC): It enables investors to trade shares in trusts with large pools of bitcoins.
Visa and MasterCard: The increase in transactions using cryptocurrencies will drive the prices of Visa and MasterCard’s stocks up since people buy cryptocurrencies through them.
It is most likely that any bullish trend of bitcoin and other major coins or tokens may lead to higher prices of stocks of companies that directly or indirectly deal with related cryptocurrencies.