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Talking around crypto-related stocks has proven merciless.
As stocks in such companies continue to reach major exchanges, you can also participate in one of the most famous indices.
American Bitcoin stocks, a self-labeled “Bitcoin accumulation platform” supported by Trump families, have now become available on the Nasdaq today after a stock merger with Griffon Digital Mining. The ABTC opened for $9.22, shot over $14 and returned to opening price by 1:30pm ET.
The company’s list comes the day after crypto platform Gemini’s expected IPO revealed approximately 16.7 million Class A common stock shares (estimated prices of $17-$19 each). The shares will be traded as Gemi on the Nasdaq Global Select Market.
However, it appears that it’s only a matter of time before Robinhood (Hood) and Strategy (MSTR) enter the S&P 500, so let’s go back to the already available crypto stocks.
Since launching Crypto trading in 2018, Robinhood has doubled its segment with a bigger plan. The trading app also met the SEC’s Cryptographic Task Force yesterday.
When many investors (of course or mistakenly) compare Hood to Coinbase, the August 29 report by Blockworks Research analyst Marc Arjoon offers a view of both sorts.
Hood is widespread over the coins annually, with stock prices increasing by 156% and 18% respectively.
“This difference could be due to the fact that Coin’s equity stories remain connected to crypto prices and volume, but Hood demonstrated resilience by expanding its revenue base across stocks, options, crypto and forecast markets, thereby gaining a wider slice of retail financial activity,” writes Arjoon.
Robinhood’s market capitalization has recently surpassed Coinbase’s market capitalization, highlighting that investors are allocating Hood’s diverse growth and monetization model premiums over Coin’s more cyclical, crypto-driven profile,” he added.
Coinbase has been trying to diversify its revenue stream in recent years, and has been successful to some extent. Second quarter trading revenue fell 39% quarter, while stable revenue increased 12% (Coinbase products averaged USDC balance of $13.8 billion).
The company is currently trying to build what is called all exchanges. This allows even more assets to be traded in the “one-stop shop” of crypto rails.
Coins have revenue benefits over food, but show “a much greater cyclicality” in that area, Aljon says:
Let’s also look at other companies. There are other companies who think they can get into the S&P 500: Strategy soon. You may remember the largest company Bitcoin holder (now 636,505 BTC) that joined the Nasdaq 100 index in December.
MSTR stocks have fallen 14% over the past month. Benchmark analyst Mark Palmer attributed it to its underlying Bitcoin Holdings and the market premium compressed into a choppy macro environment.
You may have seen the strategy take some fever (at least on Crypto Twitter) to relax what Palmer pointed out as “voluntary constraints.” The company told investors in late July that it would simply use a common stock ATM to buy Bitcoin if the MNAV is at least 2.5 times.
However, when MSTR’s MNAV slides 1.6 times, the strategy stated that even if the MNAV is less than 2.5 times, it is tactically issued shares to meet its fixed obligations and “where it is otherwise considered advantageous.” This gives you the option to buy Bitcoin with equity even during the Premium Trough.
“The company’s subsequent decision to adjust the course when the guidelines themselves were counterproductive when the weakness of Bitcoin created an attractive entry point, by starving cheap capital programs, was a proper move,” Palmer argued in a memo on Tuesday.
