Cryptocurrencies and the blockchain technology underlying them have been on fire on Wall Street in recent months, for better or worse. The Bitcoin Investment Trust (GBTC) is one of the most direct ways investors can trade the volatile cryptocurrency market, but a handful of companies have hitched a ride on the crypto train as well. Here’s a look at five stocks with ties to cryptocurrency that have more than doubled in share price in the past three months alone.
1. Nodechain Inc (VPTK), formerly Vapetek Inc., has gained 110 percent in the past three months after changing its name and business direction in December. Vapetek was focused on the smokeless tobacco business, but Nodechain will mine for bitcoin, Ethereum and other cryptocurrencies. The company says it should be able to mine $500 in Ethereum or bitcoin from each of its mining rigs every day.
2. Riot Blockchain Inc (RIOT) stock is up 121 percent in the past three months. Riot was once biotech company Bioptix, but it pivoted to cryptocurrency mining in October. Riot has also made a handful of investments in other cryptocurrency companies as well. This week Riot paid about $5.2 billion to acquire 500 bitcoins during an auction of government-seized property.
3. DNA DYNAMICS INC (DNAD) stock is up 124 percent in the past three months. DNA Dynamics was previously involved in mobile gaming apps and operating a medical marijuana website, but has now acquired patents for bitcoin ATMs. DNA plans to force ATM operators to pay royalties on bitcoin transactions.
4. Marathon Patent Group Inc (MARA) stock has surged 127 percent in the past three months. Marathon has long been considered a “patent troll,” but the company recently shifted its attention to the cryptocurrency market. In addition to buying mining machines, Marathon announced in January that it acquired four new patents related to cryptocurrency transmission.
5. Overstock.com Inc (OSTK) stock has jumped 131 percent in the past three months on the strength of its bitcoin exposure. Overstock was one of the first online vendors to accept payment in bitcoin. In August, the company announced it would be keeping half of the bitcoins it receives in payment as a long-term investment. Overstock also owns the tZERO blockchain-powered investment bank and a handful of other blockchain-based investments.
Much like the cryptocurrencies themselves, many of these stocks tied to cryptocurrency and blockchain technology can be difficult to value, at best. Their ties to the cryptocurrency market vary from company to company, and their effectiveness in monetizing those ties hinges on the leadership of each individual company. The SEC has even halted a handful of cryptocurrency stocks, including UBI Blockchain Internet and The Crypto Co., on concerns about potential fraud and market manipulation.
For traders looking for short-term volatility and trading opportunities, these stocks are right where the action is. For long-term investors, these stocks can be risky plays and require more due diligence than the average investment.
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