Since the beginning of the 20th century, stocks have delivered the highest average annual return among popular investment vehicles, such as bonds, gold, and other commodities.
Leading the charge is Bitcoin at the beginning of July 2010, to a peak of more than $68,000 per coin.
However, this surge in cryptocurrencies — specifically Bitcoin — is also fueling growth for select companies.
Perhaps it’s no surprise that one of the fastest-growing companies on the planet over the next three years is leading cryptocurrency exchange and ecosystem Coinbase Global .
Considering that Coinbase has 7.4 million monthly transacting users in the third quarter, which is more than triple last year’s MTUs, the company appears to be doing a good job of courting new investors.
If businesses become more accepting of Bitcoin, and governments are more tolerant of its use, demand for Bitcoin could grow.
Even though Coinbase is the clear crypto leader in verified users , it wouldn’t be difficult for a competing exchange to undercut the fees Coinbase charges.
Furthermore, since most cryptocurrency investors are young or new to the investing realm, they could be in for a surprise next year when they learn about wash-sale rules or have to pay tax on their capital gains.
Following the roughly $12 million the company reported in sales last year, Wall Street is looking for Riot to hit $623 million in full-year revenue by 2023.
For those unfamiliar, cryptocurrency mining involves a person or business using high-powered computers to solve complex mathematical equations that validate groups of transactions on a digital ledger, known as a blockchain.
In April, the company announced a $138.5 million order for 42,000 S19j Antminers, and recently added a $54 million order for 9,000 S19j Pro miners.
While this might sound like a slam-dunk investment idea, Bitcoin miners might be the worst way to invest in the world’s top digital currency.
The crème-de-la-crème of expected revenue growth among Bitcoin stocks comes from Marathon Digital Holdings , which is another cryptocurrency mining company.
First, whereas Riot expects to cap its miner fleet at 90,150 units by the fourth quarter of 2022, Marathon Digital will have a larger fleet of miners deployed by roughly the midpoint of next year.
Although both companies hang on to the Bitcoin they mine, Marathon made a $150 million investment in January that netted the company 4,812.6 Bitcoin .
But even with its larger fleet and beefed up balance sheet that holds 7,453 Bitcoin , Marathon is facing a number of hurdles that could derail its business.