In this piece, we will take a look at ten crypto stocks billionaires are loading up on. For more stocks, head on over to 5 Crypto Stocks Billionaires Are Loading Up On.
Cryptocurrency is perhaps the most disruptive technological effect of the internet revolution over the past few decades. What even the world’s biggest investment banks and the most preeminent economist couldn’t see coming is an entirely new asset class that is not based in anything tangible but only on the countless zeroes and ones that form the fabric of the digital universe. The world’s foremost cryptocurrency Bitcoin has made countless millionaires and perhaps bankrupted even more people. Over the past five years, Bitcoin has returned more than the shares of the world’s largest technology company Apple Inc. (NASDAQ:AAPL). Yet, since Bitcoin has primarily been a growth asset that sees funds flow when either plenty of money is available or when risk appetite is high in a growth environment. It declines during times of economic turmoil.
This tiny fact has been true throughout June 2023. This is because 2023 has been a year of cautious optimism about the Federal Reserve finally pausing and then reducing its interest rate cycles. This has led to the stock market and Bitcoin both appreciating this year. However, this upward trend was snapped by the end of the first week of June as the Labor Department released the employment statistics for May 2023. This data showed that the American economy added 339,000 jobs in the month, surpassing estimates. The market, still shaken by the rapid interest rate hike cycle, was in no mood for risk and as a result, Bitcoin dropped by 5%. This drop came despite the fact that unemployment slightly picked up, indicating that as far as the Bitcoin crowd is concerned, the data was a bearish indicator.
Bitcoin isn’t the only cryptocurrency you can get your hands on though. And its high price point also makes it quite unattractive despite the ability to make an investment in portions. In fact, there are almost 23,000 different cryptocurrencies that anyone can choose from according to data compiled by CoinMarketCap. Cumulatively, they have a market capitalization of $1.1 trillion, more than thousands of companies, yet lower than the biggest of the biggest firms.
So what does the future hold for the cryptocurrency market? Well, Coinbase has an outlook for what to expect from the market this year. It believes that 2023 will continue to provide a stressful environment for Bitcoin miners in particular. This is because of the volatility in energy prices. After the bloodbath of 2022, which saw the market get cut in half, investors are unwilling to put their faith in altcoins. This trend also holds true for the institutional crowd, for which, according to Coinbase, the fundamental thesis for investing in Bitcoin has not changed.
Additionally, investing in cryptocurrencies is not limited only to buying the ‘coins.’ There is a diverse ecosystem of companies that operate in the industry, ranging from those that provide a platform to trade the cryptocurrencies to those that provide the hardware and others that do the mining. Looking at some of these industries, the global cryptocurrency market has some growth left in it for the next ten years according to research from Precedence Research. The research firm believes that the market was worth $1.9 billion in 2022 and is expected to grow at a compounded annual growth rate (CAGR) of 12.90% until 2032 to be worth $7 billion by the end of the forecast period. Part of this growth will come from developing countries adopting cryptocurrency, even as North America was the largest market in 2022.
There is no mining without hardware, and therefore it’s no surprise that relative to the broader market, this subsegment is also quite lucrative. According to a report from Allied Markets Research released in January 2023, the Bitcoin mining hardware market was worth $528 million in 2021 and should reach $1.7 billion by 2031 through a CAGR of 12.6%.
Taking stock of the situation on the ground, management of CME Group Inc. (NASDAQ:CME) shared some light on the cryptocurrency market during its earnings call for the fourth quarter of 2022 where it shared:
So, when we look at the digital asset space and the cryptocurrency business at CME, we remain seeing very strong growth in our offering. So, just as a reminder, our approach to the cryptocurrency products as being the regulated venue, offering regulated products in a way that provides bonafide risk management and trusted access to the marketplace. We have seen that value proposition remain true in Q4 with some of the more widespread events in the cryptocurrency space, where we saw record volumes in November, record large open interest holders of 439 holders in the month of November. And that momentum hasn’t slowed down with respect to the adoption and continued growth at CME. What I mean by that is, let’s look at the number of accounts.
Typically, we add about 450 accounts per month in our cryptocurrency business. And in November, we added 934, over doubling the normal account opening. And in January, we have seen over 700 accounts €“ new accounts opened with respect to trading cryptocurrency products at CME. That’s really a testament to the marketplace broadly turning to CME in times of stress in the rest of the cryptocurrency ecosystem. When we look at the product development front, we have focused on additional pricing products. These are non-tradable reference rates in real-time indices. We did in last month, introduced three new reference rates around the Metaverse, that complements some of the additional indices we introduced with respect to D5 sector in cryptocurrency as well as the more than dozen so more traditional cryptocurrency tokens that we also have reference rates on.
With these details in mind, let’s take a look at some cryptocurrency stocks that billionaires are buying. Out of these, some top picks are CME Group Inc. (NASDAQ:CME), NVIDIA Corporation (NASDAQ:NVDA), and Interactive Brokers Group, Inc. (NASDAQ:IBKR).
Photo by andre-francois-mckenzie on Unsplash
Our Methodology
To compile our list of the top cryptocurrency stocks that billionaires are buying, we first compiled a list of firms that allow crypto trading on their platform, mine cryptocurrency, and make the equipment for crypto mining. Then, the number of their billionaire investors as of the first quarter of 2023 was determined using Insider Monkey’s database of billionaire-owned stocks, and the top billionaire cryptocurrency stock picks are listed below.
Crypto Stocks Billionaires Are Loading Up On
10. Greenidge Generation Holdings Inc. (NASDAQ:GREE)
Number of Billionaire Investors In Q1 2023: 2
Greenidge Generation Holdings Inc. (NASDAQ:GREE) is one of the oldest companies on our list. Classified as a financial services firm, the company runs cryptocurrency data centers. It is based in Dresden, New York, and was set up in 1935.
By the end of Q1 2023, five of the 943 hedge funds part of Insider Monkey’s database had bought a stake in the firm. Out of these, Greenidge Generation Holdings Inc. (NASDAQ:GREE)’s largest shareholder is Seth Fischer’s Oasis Management and its two billionaire investors are Jim Simons and Israel Englander.
Along with NVIDIA Corporation (NASDAQ:NVDA), CME Group Inc. (NASDAQ:CME), and Interactive Brokers Group, Inc. (NASDAQ:IBKR), Greenidge Generation Holdings Inc. (NASDAQ:GREE) is a crypto stock popular among billionaires.
9. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE)
Number of Billionaire Investors In Q1 2023: 3
HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is a Canadian cryptocurrency mining firm based in Vancouver, Canada. The firm has mining operations in several countries and was set up in 1987.
Three of the 943 hedge funds profiled by Insider Monkey had invested in HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) as of March 2023. All three of these are billionaire-run funds.
8. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Billionaire Investors In Q1 2023: 4
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a blockchain company based in Fort, Lauderdale, Florida. It primarily operates in the United States.
As of the first quarter of 2023, 13 of the 943 hedge funds part of Insider Monkey’s database had held a stake in the firm. Out of these, four are headed by billionaires.
7. Iris Energy Limited (NASDAQ:IREN)
Number of Billionaire Investors In Q1 2023: 4
Iris Energy Limited (NASDAQ:IREN) is an Australian company based in Sydney, Australia. The firm operates Bitcoin mining facilities.
Insider Monkey’s fourth quarter of 2023 survey of 943 hedge funds revealed that six had bought Iris Energy Limited (NASDAQ:IREN)’s shares.
6. Canaan Inc. (NASDAQ:CAN)
Number of Billionaire Investors In Q1 2023: 4
Canaan Inc. (NASDAQ:CAN) is a Singaporean hardware company. It sells Bitcoin mining hardware products and has a global operations base.
As of Q1 2023, eight of the 943 hedge funds profiled by Insider Monkey had held a stake in Canaan Inc. (NASDAQ:CAN). Out of these, the largest shareholder is Douglas Harold Hart Polunin’s Polunin Capital with a $3.7 million investment.
CME Group Inc. (NASDAQ:CME), Canaan Inc. (NASDAQ:CAN), NVIDIA Corporation (NASDAQ:NVDA), and Interactive Brokers Group, Inc. (NASDAQ:IBKR) are some hot crypto stocks being bought by billionaires.
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Disclosure: None. 10 Crypto Stocks Billionaires Are Loading Up On is posted on Insider Monkey.