Updating our Crypto & Blockchain basket

Updating our Crypto & Blockchain basket

Equities 5 minutes to read
PG
Peter Garnry

Head of Equity Strategy

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.

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.

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.

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