We recently published a list of 12 Best Bitcoin Stocks To Buy According To Billionaires. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against other best bitcoin stocks to invest in.
Bitcoin was the top-performing asset of 2024, driven by the launch of new ETFs and optimism about potential deregulation under a new US administration. However, the cryptocurrency remained volatile, with significant price swings throughout the year. By the end of 2024, Bitcoin had more than doubled in value from its starting price of around $40,000, reaching nearly $94,000, according to a report by CNBC. The most significant surge occurred in the weeks following the US presidential election. By mid-December, Bitcoin surpassed $108,000 for the first time, fueled by expectations that President Donald Trump’s victory over former VP Kamala Harris would lead to clearer regulations and increased investment in the crypto space.
One of the main factors influencing Bitcoin’s price movements is the halving mechanism, a fundamental feature of its network. Bitcoin halving is a built-in mechanism in the Bitcoin network that reduces the rewards miners receive for processing transactions and adding new blocks to the blockchain. This event occurs roughly every four years, or after 210,000 blocks are mined, gradually slowing the introduction of new bitcoins into circulation. Its main purpose is to regulate Bitcoin’s supply, ensuring it remains limited to a maximum of 21 million coins. Halving can influence Bitcoin’s value by reducing the number of new coins entering the market. The first halving took place on November 28, 2012, cutting the block reward from 50 to 25 bitcoins. This was followed by a significant price increase, a trend observed in later halvings. The most recent halving occurred on April 20, 2024, at block 740,000, reducing the reward from 6.25 BTC to 3.125 BTC. Historically, halvings have been linked to price increases as the reduced supply can boost demand. This scarcity strengthens Bitcoin’s role as a digital store of value, often compared to gold. Additionally, market anticipation around halving events tends to drive investor interest and trading activity, further impacting Bitcoin’s price.
Bitcoin’s growing influence is also reflected in broader financial markets and institutional investment trends. By the end of 2024, global investable assets surpassed $200 trillion, with cryptocurrencies accounting for over $3 trillion, or 1.5% of the market. Institutional investors increasingly embraced Bitcoin exchange-traded products (ETPs), with inflows surpassing $34 billion as Bitcoin gained wider acceptance in multi-asset portfolios. Bitcoin has solidified its status as both a benchmark for the crypto market and a measure of investor risk appetite. Its fixed supply and decentralized structure set it apart from traditional investments, making it an alternative growth asset in today’s changing economic environment. This view is further supported by the US proposal to classify Bitcoin as a strategic reserve asset. The proposal comes as the US faces rising debt and borrowing costs. President Trump’s “America First” policies which combine tax cuts and tariffs could add to inflation concerns, which are already evident in bond markets, where 30-year yields neared 5% in early 2025.
Despite the cryptocurrency sector’s volatility, some billionaire investors remain optimistic about its future. Michael Saylor, executive chairman of a leading business intelligence firm, was the top crypto billionaire gainer by percentage on Forbes‘ 2024 list. The software company he founded in the 1990s has since transformed into a major Bitcoin investment entity. By 2024, it held approximately 193,000 bitcoins, making it the largest corporate bitcoin holder globally, according to its CFO. Tech billionaire Mark Cuban is also investing in crypto. He believes its value could rise as adoption increases and it becomes more integrated into the global financial system. In fact, he has even speculated that it could one day replace the US dollar as the world’s reserve currency.
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 12 companies operating in the cryptocurrency industry with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Coinbase Global, Inc. (NASDAQ:COIN)
Number of Billionaire Investors: 11
Coinbase Global, Inc. (NASDAQ:COIN) operates a cryptocurrency platform serving both US and international markets. It provides a primary financial account for digital assets, a brokerage platform with strong liquidity for institutions, and tools for developers to build on-chain applications. On March 11, the company announced its registration with India’s Financial Intelligence Unit, enabling it to offer crypto trading services in the country. This move aligns with the growing interest in digital assets among young Indians, many of whom are exploring crypto trading as a way to supplement their income. It is one of the best Bitcoin stocks to invest in, given the company’s dominance in the crypto space.
In 2024, Coinbase Global, Inc. (NASDAQ:COIN)’s revenue more than doubled, reaching $6.6 billion, with $3.3 billion in adjusted EBITDA, marking its second consecutive year of positive adjusted EBITDA. Subscription services saw a 64% year-over-year growth, generating $2.3 billion, driven by USDC, staking, and Coinbase One. International revenue accounted for 19% in Q4, supported by improved payment systems and localization efforts. By year-end, Coinbase’s USD holdings had grown to $9.3 billion.
On March 7, Rosenblatt Securities initiated coverage on Coinbase Global, Inc. (NASDAQ:COIN) with a Buy rating and a price target of $305. The firm’s analysts expressed confidence in the future of cryptocurrency-related stocks, pointing to potential regulatory shifts and growing institutional adoption as key factors driving their outlook.
Overall, COIN ranks 1st on our list of the best bitcoin stocks to buy according to billionaires. While we acknowledge the potential of COIN to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COIN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.