background image

Updating our Crypto & Blockchain basket

Equities 5 minutes to read
Picture of Peter Garnry
Peter Garnry

Chief Investment Strategist

Summary:  Three companies have been added to our Crypto & Blockchain equity theme basket extending the basket to 26 companies covering the industry across many different activities. We have added Bakkt Holdings, Stronghold Digital Mining, and CoinShares International, which together with the other companies in the basket now represent $143bn in market value. Our Crypto & Blockchain basket remains the best performing basket this year up 117%.


One of our smallest equity baskets has been our Crypto & Blockchain basket but as companies within the industry have IPO’ed we have added those in bulk with the last update back in May. Last Friday we added three new companies to our basket; Bakkt Holdings, Stronghold Digital Mining, and Coinshares international extending the basket size to 26 companies. The basket now represents $143.2bn in market value across different segments of the industry such as exchange services, asset management, banking, mining, and blockchain software.

NameSegmentMarket Cap (USD mn.)Sales growth (%)P/BDiff to PT (%)5yr return
Coinbase Global IncCrypto exchange69,815139.365.06.9NA
Signature Bank/New York NYBank18,8099.72.513.4174.6
Bakkt Holdings Inc (*)Digital assets platform9,325NA1.1NANA
Galaxy Digital Holdings LtdCrypto services8,513NA5.96.81,640.8
MicroStrategy IncInvestment firm7,5845.116.518.7289.6
Marathon Digital Holdings IncCrypto mining5,5312,739.79.512.677.0
Silvergate Capital CorpBank5,04861.34.7-11.1NA
Riot Blockchain IncCrypto mining2,695798.53.888.01,140.8
Voyager Digital LtdCrypto broker2,33715,123.521.052.0NA
Hut 8 Mining CorpCrypto mining2,29233.47.14.2557.8
Monex Group IncFinancial institution1,69875.31.914.1262.1
Canaan IncInfrastructure1,53622.179.2NANA
Hive Blockchain Technologies LtdCrypto mining1,455265.07.3NA4,570.0
Stronghold Digital Mining Inc (*)Crypto mining1,283NANANANA
Northern Data AGInfrastructure1,261253.77.0100.0NA
Bitfarms Ltd/CanadaCrypto mining1,0027.031.945.2NA
Argo Blockchain PLCCrypto mining834120.016.387.8NA
Bit Digital IncCrypto mining649NA6.118.6NA
Coinshares International Ltd (*)Digital asset management564NA3.210.4NA
Bitcoin Group SECrypto broker290138.73.1NA871.6
Future FinTech Group IncBlockchain e-commerce149146.11.8NA-65.4
Digihost Technology IncCrypto mining145NA6.3NANA
DMG Blockchain Solutions IncInvestment firm1332.71.6102.0NA
Taal Distributed Information Technologies IncBlockchain platform115NA3.194.0NA
Quickbit EU ABCrypto payment services63-44.32.1NANA
Safello Group ABCrypto broker25NA3.3NANA
Aggregate / median143,15097.75.918.6423.7
Source: Bloomberg and Saxo Group
* Added to theme basket on 29 October 2021
** Infrastructure segment means physical computing applications for crypto mining

What are the three new companies doing in the industry?

Bakkt is a digital platform for consumers, businesses, and financial institutions that want to engage in digital assets whether it is buying crypto currencies such as Bitcoin, or pay for goods and services in crypto currency, or send money to friends and family. The company also offers monthly futures and options contracts on Bitcoin, and custody with International Exchange (its second largest shareholder owning 9.4%). The company recently announced a partnership with Mastercard and Fiserv causing interest and its share prices to increase 280% in a few days.

02_PG_2
Source: Saxo Group

Stronghold Digital Mining is a Bitcoin miner that market itself as an environmentally conscious miner as its operations are powered through the reclamation of coal refuse sites across Pennsylvania. Many climate activists would likely oppose the notion that coal refuse is outright an environmental benefit compared to run mining activities on solar, hydro, or wind power.

Coinshares International is a digital asset management firm that launched the world’s first regulated Bitcoin investment fund in 2014 and later in 2015 offering it on a regulated exchange. The company offers exchange traded products (ETPs) on crypto, active investment strategies in crypto for professional investors, advisory services and various index strategies.

Driven by strong price gains in crypto currencies this year our basket is up 116.9% year-to-date delivering the best performance of all our equity theme baskets.

02_PG_1

The next evaluation and potential updating of our basket will take place with our annual review process of all our equity baskets in January. If you want to say informed about the industry our crypto analyst Mads Eberhardt writes a weekly crypto analysis highlighting and analysing the key developments in the industry.

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.