In 2022 and 2023, the cryptocurrency market has been cooling down due to high interest rates. However, this year, with the approval of the first spot ETF by U.S. regulatory agencies and investors anticipating the upcoming halving (which will slow down Bitcoin's supply growth this year), cryptocurrencies have returned to investors' attention, with Bitcoin prices soaring nearly 50% year-to-date. At the same time, Ethereum prices have risen by over 40%, as the market anticipates regulatory approval for its spot ETF along with the Ethereum network's upcoming updates.
This resurgence has also led many investors to shift their focus back to cryptocurrency-related stocks such as Coinbase (COIN.US), Marathon Digital, and MicroStrategy (MSTR.US). Many analysts believe that if the cryptocurrency market continues to expand, these three stocks will provide a simple way for investors to profit from it.
Coinbase
Coinbase is one of the world's largest cryptocurrency exchanges. In 2023, 34% of its trading volume comes from Bitcoin, 20% from Ethereum, 11% from Tether stablecoin, and the rest from other types of crypto assets. This diversification makes it a good way to profit from the long-term expansion of the cryptocurrency market.
Over the past two years, rising interest rates have pushed investors away from cryptocurrencies and other speculative investments, causing Coinbase to experience a significant slowdown. However, looking ahead, the surge in Bitcoin and Ethereum prices over the past few months may attract more retail investors and reignite its business.
Analysts project that from 2023 to 2026, Coinbase's revenue and adjusted EBITDA will grow at a compound annual growth rate of 9%. Based on these estimates, Coinbase's valuation (stock price is approximately 26 times this year's adjusted EBITDA) still seems reasonable.
However, if Bitcoin, Ethereum, and other top cryptocurrencies soar to new heights, these forecasts may be too conservative. If this most optimistic scenario materializes, Coinbase could even surpass these expectations easily and outperform the market by 2030.
Marathon Digital
Marathon Digital is the world's largest pure Bitcoin miner. In 2023, the company produced a record 12,852 bitcoins, a 210% increase from 2022, while its total hash rate (measuring its total mining capacity) increased by 253%. The company regularly sells the mined bitcoins to raise more cash, but as of the end of last year, it still held 15,126 bitcoins (worth about $947 million) and had cash and cash equivalents of $357 million on its balance sheet.
Marathon Digital may consolidate its position in the Bitcoin mining market in the near future. Over the past year, the company has opened two new facilities, established a mining joint venture in Abu Dhabi, and agreed to acquire several other mining sites.
Therefore,
Although mining becomes increasingly difficult with each halving of Bitcoin, and the mining rewards halve every four years, Marathon Digital can still offset this pressure by expanding its mining operations and diluting costs. Analysts predict that the company's revenue will grow at a compound annual growth rate of 48% from 2023 to 2025. If the price of Bitcoin surges and the company can outperform other top competitors, its growth rate may accelerate even further by the end of this decade.
MicroStrategy
MicroStrategy was once considered a slow-growing enterprise software stock. Everything changed over the past three and a half years when the company began heavily investing in Bitcoin. By 2023, the company held 189,150 Bitcoins on its balance sheet, valued at around $11.9 billion. This accounts for nearly two-thirds of its $18.5 billion enterprise value, and the company plans to continue purchasing Bitcoin in the foreseeable future.
As MicroStrategy accumulates more Bitcoin, it is gradually expanding its subscription-based analytics services to offset its declining licensing and support revenues. Bullish observers believe that in the long run, with the returns from Bitcoin investments, MicroStrategy's software business will become more stable.
Therefore, like Coinbase and Marathon Digital, MicroStrategy provides a simple way to profit from the rising price of Bitcoin without directly purchasing it. The company can also sell some of its Bitcoin to reduce debt, expand its software ecosystem through large-scale investments and acquisitions. If the company can leverage these assets effectively, it is poised to outperform the market with ease by 2030.

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The cryptocurrency market is rebounding, with investors refocusing on related stocks such as Coinbase, Marathon Digital, and MicroStrategy. The surge in cryptocurrency prices, especially Bitcoin and Ethereum, has attracted more investors. As one of the world's largest cryptocurrency exchanges, Coinbase is expected to see future revenue and adjusted EBITDA grow at a compound annual growth rate of 9%.

Cryptocurrency bull market is back! These three US stocks are worth paying attention to!