While stocks languish below all-time highs, the cryptocurrency market has entered a new bull phase, with Bitcoin hitting all-time highs last week. As direct cryptocurrency investment has gained traction, many investors are now exploring public companies with significant exposure to digital assets.
Investing in cryptocurrencies is easier for those of us who already have a brokerage account, though it’s crucial to understand the risks.
Cryptocurrency markets are inherently volatile, even more so than small caps. Dramatic price swings driven by speculation and sentiment are common. The ever-evolving regulations and technological developments give the space a Wild West feel.
Investing in stocks with fortunes tied to Bitcoin or other digital currencies introduces an even greater layer of unpredictability and risk than conventional stock picking.
That unpredictability and volatility is a risk. But it can also send these stocks soaring.
In this article, we'll pick four stocks that can outperform in a Bitcoin bull market based on technical signals, earnings potential, and the amount of digital assets they hold. Word to the wise: always use an extra measure of caution when investing in crypto-adjacent companies.
Coinbase Global Inc.
Coinbase COIN, one of the first companies to offer cryptocurrency investing to retail traders, became the first cryptocurrency exchange to go public in April 2021. The stock quickly shot over $300 per share following the IPO, topping out at $353 at the peak of the 2021 Bitcoin bull market in November. However, like the broader crypto market, Coinbase entered a bear market in 2022, dropping under $50 per share by the start of 2023. Despite its massive market cap and customer base, the stock didn't participate in the 2023 market recovery and only started showing renewed strength once the rally extended to 2024.
Much like the price of Bitcoin, COIN shares declined for the second half of 2024 before rallying again on Donald Trump's presidential victory in hopes of relaxed crypto regulation. Then, another extended decline followed Inauguration Day, and the stock suffered a 50% haircut. However, now that Bitcoin is reaching new all-time highs, COIN shares have joined in on the fun again, and a new all-time high for the exchange might not be far behind.
The daily chart above shows the stock breaking out of its downtrend thanks to a 16% gain on May 13 on heavy volume. Coinbase reported over $1.2 trillion in trading volume in 2024. Analysts at Goldman Sachs, Benchmark, Oppenheimer, and Rosenblatt have all boosted price targets in the last two weeks. Based on current prices, Coinbase also owns 6,885 Bitcoins in its treasury, worth an estimated $750 million.
Robinhood Markets Inc.
Robinhood HOOD ushered in the commission-free stock trading era, and its 2021 IPO was one of the most heavily anticipated issues in years. But after jumping over $50 per share in the fall of 2021, the stock swooned and, unlike Coinbase, did not experience a new bull run when the market turned in 2023. It took until September 2024 for HOOD shares to sustain a price over $20, but the recent rally has been impressive and should have legs if crypto keeps ascending.
Today, Robinhood offers retirement accounts, banking services, premium features through its Gold subscription program, and a new platform called Legends for active traders. But the company's bread and butter is still crypto and options trading. In Q1 2025, the company reported $583 million in annual transaction-based revenue, including $252 million from cryptocurrency trading. The $252 million figure represents a 100% increase year-over-year; the company expects to grow total revenue by 30% in 2025.
Technical signals are also strong, with the price trading above the 50- and 200-day simple moving averages (SMAs) and recently reaching a new all-time high. Goldman Sachs, Deutsche Bank, and Needham boosted their price targets this month in defense of their Buy ratings. The average of $69 indicates an upside of nearly 10% from current levels.
Strategy Inc.
Formerly known as MicroStrategy, Strategy MSTR is the planet’s largest public holder of Bitcoin by a fairly wide margin. According to its most recent treasury report, Strategy now owns over 576,000 Bitcoins, more than 2.7% of the total supply and nearly 530,000 more than any other public company. CEO Michael Saylor has replaced much of his former software business with cryptocurrency management, and the stock has swung violently along with Bitcoin's price gyrations.
Despite a poor track record of Bitcoin profits (the company has spent over $40 billion on its tokens and current holdings are worth just under $63 billion), MSTR shares often move in lockstep with the price of Bitcoin. The chart above is also flashing some interesting technical signals. After failing to sustain a breakout above the 50-day SMA, the stock finally busted through in mid-April and appeared to be tracking a new high before the RSI triggered an overbought signal, and shares declined. This pullback could be a new entry point for the latest Bitcoin bull market run, as Strategy is likely to continue adding Bitcoins to its treasury as the price action accelerates.
Tesla Inc.
Tesla TSLA shares have been caught in a tug-of-war ever since CEO Elon Musk threw his hat into the political ring. Following Trump's November election win, TSLA shares jumped from $242 to $488 in six weeks. However, following the inauguration, shares plummeted to $225 as auto sales dipped globally amidst Musk's declining popularity.
Musk recently announced plans to forgo political dealings and concentrate on his companies. While that might be a difficult promise to hold in the future, TSLA stock has reacted positively. Despite declining sales, Tesla remains one of the best Bitcoin investors. The company is the fifth largest public owner with 11,500 Bitcoins, and the buys have been well-timed. The entry value of TSLA's Bitcoin holdings is $330 million, but the current value is over $1.2 billion, a gain of nearly 300% that dwarfs the returns of Strategy, which have barely topped 50%. The daily chart also looks bullish, as a double bottom pattern is receiving confirmation from a breakout on the MACD.
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