For those who want to invest in both crypto money and stocks, we searched blockchain and crypto-friendly companies for Kriptokoin.com readers. So which companies whose stock performance increases as Bitcoin rises? What is the connection of companies such as Paypal, Nvidia, Tesla, AMD, CME Group and many others with Bitcoin?
Cryptocurrencies, Bitcoin, metaverse, NFT… These are all concepts of the new era. Cryptocurrency and blockchain-based new investment tools have emerged as a strong alternative to traditional investment tools such as gold, foreign currency, bonds, and deposits, especially with the Z generation. This alternative has also attracted the attention of global governments, thanks to the billions of investors it has found on a global basis. And today, we are talking about government policies on the establishment of the legal infrastructure of these markets, and we see that global central banks have started to issue their own cryptocurrencies.
On the other hand, we have also experienced that there have been escapes to the stock markets, as in the last few years of crypto winter with the crypto money markets that grew like an avalanche in the years when Bitcoin or altcoins showed very sharp rises. For example, it is estimated that there were millions of crypto money investors who came to Borsa Istanbul last year, especially with public offerings. However, it is a fact that this year, when Bitcoin started to rise again from 15-16 thousand dollars, the same investors quickly returned the money they earned in the stock market to the crypto markets.
So, do stock markets and crypto money markets always have to be competitors of each other? For example, isn’t it possible for the most fanatical investors of the stock markets to invest in cryptocurrencies? Or let’s ask the other way around: Does the cryptocurrency investor have to exit the stock market completely while investing in Bitcoin?
Actually, it doesn’t have to be like that anymore. Because although we do not see many examples of this in Turkey yet, the stocks of many companies that are now considered as crypto companies are traded on global stock markets. According to the data we obtained by examining close to 100 thousand companies from 100s of stock exchanges one by one, there are nearly 70 stocks that operate with blockchain technologies or directly related to cryptocurrencies and generate income from these activities. There is also the opportunity to invest in these stocks through various applications, which we will examine as another news item in the future.
So what are these companies? How do the price rises of Bitcoin or altcoins affect the performance of these stocks? Let’s start with the blockchain and crypto-friendly companies with the highest market capitalization…
NVIDIA CORPORATION (NVDA) – Market Cap: $783 billion
Let’s start with the obvious question first.
Why is Nvidia crypto friendly?
High-spec graphics processing units are actually the top hardware of choice for cryptocurrency mining operations. So if you look at the issue from the cryptocurrency side, the industry is connected with Nvidia. But if we turn to the Nvidia side of the issue, the company is interestingly uncomfortable with being heavily associated with crypto money and denies that it has an organic connection with this industry at every opportunity. If you look at it, it is not quite right to say that the sales of Nvidia graphics cards have an astronomical share in their total sales. But we also know that especially during the pandemic period, after the decrease in production capacity due to semiconductor production and supply problems, he does not hesitate to take decisions that will increase the production capacity in this area, after the graphics cards went into a scramble at incredible prices in the second-hand market. So maybe Nvidia insists on denying it, but both the ties of cryptocurrency to Nvidia and the share of crypto and blockchain-related hardware in Nvidia’s sales are increasing.
Now, the rise in artificial intelligence technologies, the transition to new stages in the metaverse, and the fact that artificial intelligence is actually gradually advancing with blockchain and crypto are causing Nvidia to move towards a point where it can no longer escape.
And at the end of the day, Nvidia’s stocks traded on the NASDAQ are already separated from the technology sector, both during the bull periods in cryptocurrencies and the recent rise of AI initiatives.
NVIDIA vs BTC
In fact, the correlation between NVIDIA shares and Bitcoin price has been the subject of statistical studies from time to time through econometric models. According to one of these studies, there has been a 69 percent inverse correlation between Bitcoin price and NVIDIA stocks in the last 3 months. The size of this correlation is at the level of 1.28. In other words, the 1-unit rise in Bitcoin is accompanied by an increase of 1.28 units in NVIDIA shares. In other words, NVIDIA earns 28 percent more than the rise in Bitcoin.
There is even a recent proof of this. Nvidia shares were the only S&P 500 shares to outperform Bitcoin in terms of returns in the first quarter.
TESLA INC (TSLA) – Market cap: $560 billion
When you say Tesla, Elon Musk, when you say Elon Musk, crypto money, Bitcoin (BTC) and even Dogecoin (DOGE) come to mind inevitably. We’re not just saying this for Musk’s twitter chills. This guy is making moves that show he truly believes in cryptocurrencies. And he doesn’t just say it, he also proves it with Tesla’s independent audit reports. Tesla is one of the most notable Bitcoin investor companies in the world. As you know, he has Bitcoin among his financial investments. Moreover, some traditional companies, or the most famous representatives of the old economy, still describe cryptocurrencies as a scam.
The amount of Bitcoin in Tesla’s portfolio changes from time to time according to the situation in the market. But even in the worst bear market, the company still continues to hold the Bitcoins it collected from very cheap levels. Let’s take a look at his latest balance sheet. How much Bitcoin is Tesla holding and what is its market value?
In early 2022, the company had actually invested $1.5 billion in Bitcoin. According to estimates at that time, he had 43,200 Bitcoins. Although it is not known exactly when he did this, the dollar equivalent of these Bitcoins appeared clearly on Tesla balance sheets.
In the second quarter of 2022, Tesla sold 75 percent of its Bitcoins and converted them into a fiat currency. Yes, it may not be a good time to sell, but we have no idea in which month of the second quarter he sold these Bitcoins. If he sold it at the beginning, there is a possibility that he sold it for 48 thousand dollars. There’s also the possibility that if he eventually sold it, he sold it for $18,000. However, some reports and analyzes show that Tesla sold its BTCs with a loss of only $ 34 million, despite all the price drops. It is estimated that he currently has 9720 Bitcoins. The market value of these BTCs is around 260 million dollars as of today (with a BTC price of 26 thousand 785 dollars). We don’t know if Tesla started raising Bitcoin again in the recent crypto boom. We will find out about this with the announcement of the balance sheets for the second quarter financial reporting period, which will be completed one week later, approximately in August. But one thing is certain: If a crypto bull comes along and the most conservative $100,000 price predictions for Bitcoin, for example, come true, the market value of Tesla’s 9720 BTC will approach nearly $1 billion.
On top of that, it actually makes Tesla one of the crypto-friendly companies in terms of adoption, due to its statements that it can accept payments with cryptocurrencies. And of course, above all, the owner Musk seizes every opportunity to chill cryptocurrencies.
TSLA vs BTC
Now let’s come to the performance of Bitcoin and Tesla (TSLA) stocks. In fact, the chart you will see below clearly shows an incredible correlation between Tesla and Bitcoin prices, except for some periods. Fakau, the most striking point in this chart is that the correlation between the prices of the two assets becomes almost one-to-one when the TSLA stock is Bitcoin bulls.
ADVANCED MICRO DEVICES (AMD) – Market cap: $174 billion
Unlike NVIDIA, AMD is a hardware manufacturer that directly targets the cryptocurrency market and expresses this at every opportunity. AMD, the manufacturer of GPUs and CPUs needed by cryptocurrency miners, actually provides hardware that allows fast transactions on the blockchain, thanks to the microprocessors it produces. This makes it one of the companies directly integrated with the cryptocurrency markets.
Of course, AMD’s revenue from the demand of crypto miners actually has a very serious competitor. Income from players. It seems almost impossible for crypto miners to replace this income for now. The biggest reason for this is, of course, that despite the drop in demand during the crypto winter, the intense demand from the gaming market never drops. That front is getting bigger. However, this assessment should perhaps be re-talked during the crypto spring, which is expected to take place in the next few years and will be supported by the halving. Because then we will see again how big the demand will be and the new demand created by the transactions.
AMD vs BTC
As for the BTC correlation with AMD stocks. AMD, like many other semiconductor manufacturers, is a company that targets altcoin miners more than Bitcoin. This clearly explains the lagged reflection in the apparent correlation between the price of Bitcoin and the price of AMD stocks. In other words, while Bitcoin is rising first, then the arrival of the altcoin season seems to affect AMD shares faster.
PAYPAL HOLDINGS (PYPL) – Market cap: $68 billion
In fact, the emotional relationship between PayPal and cryptocurrencies first began in 2014. PayPal, which started to accept Bitcoin for the first time in this history, followed a wait-and-see policy for a long time. In October 2020, a new move started. PayPal, one of the world’s most widespread electronic payment institutions that has allowed crypto trading since this date, has limited this relationship to only intermediating trade for a long time. Until June 2022. By this date, PayPal has turned into a fully crypto-friendly company after opening this route in the middle of last year, allowing crypto investors to withdraw funds from crypto platforms to their external wallets. And when it started to show with independent audit reports how much of customer assets are held in crypto assets as per the SEC rules, it has actually proven how widely used a platform PayPal is in this respect. According to the latest data, PayPal holds approximately $609 million worth of customer cryptocurrencies. But this is just the image at the time the current balance sheet photo was taken. Because PayPal’s function is not to host its customers’ crypto assets. Rather, it is to mediate these transactions, facilitate their flow between platforms, and establish the transfer relationship between held cryptocurrencies and fiat currency wallets. In other words, when we look at PayPal’s balance sheet, we most likely see assets that were caught passing through PayPal for the moment. Of course, it is known that there are some assets held in PayPal as it also offers a digital wallet feature, but most of the crypto assets are either in hot wallets on exchanges or in cold wallets of crypto investors. It is not possible to know how much of the crypto money moving between these wallets is moving through PayPal. At least the available data provides enough evidence to believe that PayPal is a serious crypto partner.
BITCOIN vs PAYPAL
But is the correlation between PayPal stocks and Bitcoin the same as the stocks of other crypto-friendly companies?
In fact, a direct correlation with a lagged effect until this year is evident. However, it is not overlooked that PayPal stocks reacted later to Bitcoin’s upward returns, and that after the reaction started, this reaction was much harsher than Bitcoin’s rise.
It should be underlined that PayPal shares are in a similar situation in BTC’s reversal from the bottom, which started this year.
CME GROUP (CME) – Market Cap: $65 billion
There is no need to explain the relationship between CME Group and Bitcoin or cryptocurrencies (such as Ethereum) at length. Because CME Group is one of the players of this market directly. It occupies a very important volume in the market, especially with crypto money future contracts.
CME is also a very important data provider. The data it provides also plays an important role in the cryptocurrency ecosystem.
BITCOIN vs CME
Interestingly, it is noteworthy that the correlation between BTC and CME shares broke down between 2018 and 2020, although it normally has more direct links to cryptocurrencies than other companies. Moreover, this period coincides with the historical peak of Bitcoin. However, with the end of 2020 and the beginning of 2021, Bitcoin price and CME stocks have started to have a close to one-to-one correlation again. Especially with Bitcoin’s recovery this year, its correlation with CEM stocks has started to resemble almost like its twin brother.
After these shares, there is no need to examine one by one, since all the shares to be mentioned are the actual actors of the crypto market. What follows is our table showing the performance evaluation between the numbers and Bitcoin price and the shares of the companies.
As you can see from the table, the shares of a crypto news organization (although it has a board that does not have a lot of depth) have gained more value than Bitcoin in the 6-month period when Bitcoin provided 72 percent return and made 9X for its investor. Next comes the shares of Cipher Mining, a mining company. It is followed by Riot Platforms shares.
As we pointed out in the article, it is the only crypto and blockchain-linked stock that is included in the Nvidia S&P 500 index and has gained more value than Bitcoin. PayPal, on the other hand, seems to have experienced a loss in value while Bitcoin gained value in this period. But the delayed reaction to crypto rebounds is hardly new at PayPal. It is not overlooked that stocks such as Tesla and CME Group are still far behind the Bitcoin return with a very weak performance.
EQUITY AND PERFORMANCES RELATED TO BITCOIN OR BLOCKCHAIN
|WEBB:USP||WEB BLOCKCHAIN MEDIA INC||0.0001||0.001||900|
|CIFR:USN||CIPHER MINING INC.||0.7511||2.38||217|
|RIOT:USN||RIOT PLATFORMS INC.||3.99||11.07||177|
|BTBT:USN||BIT DIGITAL INC.||0.9026||2.45||171|
|IREN:USN||IRIS ENERGY LTD||1.53||3.93||157|
|DGHI:USN||DIGIHOST TECHNOLOGY INC.||0.6328||1.58||150|
|CBTTF:USP||CATHEDRA BITCOIN INC.||0.04015||0.0815||103|
|BNXAF:USP||BANXA HOLDINGS INC.||0.25||0.5||one hundred|
|MSTR:USN||MICROSTRATEGY INC. (A)||167.08||287.58||72|
|HUT:USN||HUT 8 MINING CORP||1.155||1.95||69|
|APETF:USP||ALPHA METAVERSE TECHNOLOGIES INC||0.0417||0.0649||56|
|NPPTF:USP||NEPTUNE DIGITAL ASSETS CORP||0.12||0.18145||51|
|ARBK:USN||ARGO BLOCKCHAIN PLC (DR)||0.7998||1.19||49|
|HIVE:USN||HIVE BLOCKCHAIN TECHNOLOGIES LTD||2.12||3.12||47|
|BCNWF:USP||BITCOIN WELL INC.||0.028||0.0411||47|
|MARA:USN||MARATHON DIGITAL HOLDINGS INC.||6.42||9.38||46|
|ARBKF:USP||ARGO BLOCKCHAIN PLC||0.08685||0.125||44|
|AMD:USN||ADVANCED MICRO DEVICES INC.||75.25||107.93||43|
|COIN:USN||COINBASE GLOBAL INC.||43.39||60.26||39|
|BTCM:USY||BIT MINING LTD (DR)||2.1||2.87||37|
|6AX:DEF||DMG BLOCKCHAIN SOLUTIONS INC.||0.1376716||0.1857673||35|
|GLXY:CAT||GALAXY DIGITAL HOLDINGS LTD||3.142729173||4.1481481||32|
|DMGGF:USP||DMG BLOCKCHAIN SOLUTIONS INC.||0.1496||0.1948||30|
|CONMF:USP||COINSMART FINANCIAL INC.||0.123105||0.1559||27|
|MIGI:USN||MAWSON INFRASTRUCTURE GROUP INC||2.1||2.64||26|
|BULT:USP||BULLET BLOCKCHAIN INC.||0.041||0.05||22|
|BIGG:CAN||BIGG DIGITAL ASSETS INC.||0.1754255||0.2||14|
|ICG:USN||INTCHAINS GROUP LTD (DR)||8||8.88||11th|
|ALCBI:FR||CRYPTO BLOCKCHAIN INDUSTRIES SA||0.61644||0.6801377||10|
|BBKCF:USP||BIGG DIGITAL ASSETS INC.||0.179||0.1965||10|
|SOFI:USN||SOFI TECHNOLOGIES INC.||4.64||5.07||9|
|CME:USN||CME GROUP INC (A)||167.7413248||181.81||8|
|CBTC:USP||XTRA BITCOIN INC.||0.00185||0.002||8|
|2425:TW||CHAINTECH TECHNOLOGY CORP||0.868227982||0.9165962||6|
|GBBK:USN||GLOBAL BLOCKCHAIN ACQUISITION CORP||9.94||10.4||5|
|BTCWF:USP||BLUESKY DIGITAL ASSETS CORP||0.0345||0.0353||2|
|MHUBF:USP||MINEHUB TECHNOLOGIES INC.||0.16||0.16175||one|
|BCII:USP||BCII ENTERPRISES INC.||0.0998||0.1||0|
|GBCHF:USP||METAVERSE CAPITAL CORP||0.000001||0.000001||0|
|XNET:USN||XUNLEI LTD (DR)||1.66||1.64||-one|
|HOOD:USN||ROBINHOOD MARKETS INC. (A)||9.09||8.62||-5|
|BWQ:DEF||ADVANCED BLOCKCHAIN AG||3.246584||3.038453||-6|
|BVCI:CAN||BLOCKCHAIN VENTURE CAPITAL INC||0.612123022||0.5481481||-10|
|BLOX:CAN||CRYPTOBLOX TECHNOLOGIES INC.||0.013063601||0.0111111||-15|
|PYPL:USN||PAYPAL HOLDINGS INC.||79.91||61.27||-23|
|SAI:USN||SAI.TECH GLOBAL CORP||2.68||2.03||-24|
|GBLC:CAN||GRAPH BLOCKCHAIN INC.||0.037324574||0.0222222||-40|
|GREE:USN||GREENIDGE GENERATION HOLDINGS INC.||5.5||3.27||-41|
|LQAVF:USP||LIQUID AVATAR TECHNOLOGIES INC||0.02046||0.012||-41|
|CINGF:USP||COINSILIUM GROUP LTD||0.0204||0.011||-46|
|CRKR:USP||PRAIRIE OPERATING CO.||0.1639||0.085||-48|
|BTDR:USN||BITDEER TECHNOLOGIES GROUP||10.35||5.06||-51|
|ABIT:USP||ATHENA BITCOIN GLOBAL||0.4075||0.165||-60|
|SLNH:USN||SOLUNA HOLDINGS INC.||0.7695||0.2107||-73|
|VYGVQ:USP||VOYAGER DIGITAL LTD||0.0605||0.0089||-85|
|CRCW:USP||THE CRYPTO CO.||0.23205||0.015725||-93|
|BITCF:USP||FIRST BITCOIN CAPITAL CORP||0.004||0.0001||-98|