Better Crypto Stock Play: MicroStrategy or Coinbase?
I’ll look at two of the best crypto stocks and which one will be a better crypto play moving forward in this bull market.
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Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2024-03-16 11:30

Better Crypto Stock to Play: MicroStrategy or Coinbase?
Plain and simple: there is nothing hotter than the crypto market right now. You might not believe in it or trust it, but the crypto industry is minting millionaires way faster than the stock market ever has. With Bitcoin trading at all-time highs, Blackrock scooping up more BTC daily, and Solana’s meme coin casino hitting more than $3.5 billion in daily transactions, we can now firmly say: we are so back.
Better Crypto Stock Play: MicroStrategy or Coinbase?
But for those who do not want to dip their toes into the crypto waters, how can you play this industry from the stock market? There are the spot Bitcoin ETFs but some crypto stocks have provided incredible gains over the past year. In this article, I’ll look at two of the best crypto stocks and which one will be a better crypto play moving forward in this bull market.

MicroStrategy (NASDAQ: MSTR)
Nobody really even knows what MicroStrategy does aside from buying Bitcoin and holding it. Before Blackrock came along, MicroStrategy was the largest corporate holder of Bitcoin in the world. The company is led by founder Michael Saylor who is the leader of the laser-eyed Bitcoin bulls.

So if you don’t even know what a company does, how can it be a good investment? Well, so far in 2024, shares of MSTR have gained about 160% or nearly $1,100 per share. Not a bad return and all of it is from the value of Bitcoin. MicroStrategy holds nearly 200,000 BTC on its balance sheet and Saylor says that he is never selling it. This makes MSTR stock a proxy for Bitcoin more than anything. Since the company doesn’t invest in or hold any other cryptos, you’ll find that MSTR trades as Bitcoin does.

Does that make it a good investment? It’s probably a bit safer than investing in Bitcoin. You don’t have to worry about cold storage or signing up for an exchange. The stock price is getting a little high for retail interest so I wouldn’t rule out a stock split at some point during this crypto bull run.

Coinbase ($225.86|7.04%)
Coinbase has become the de facto crypto exchange to use in the United States. After the demise of FTX and the lack of trust in Binance, Coinbase stepped up to become the go-to crypto exchange for Americans. But Coinbase isn’t just huge in America. The company has made a major effort to expand into other regions, establishing offices in Canada and Europe.

It is one of the easiest on-ramps for casual crypto traders and one of the more recognizable brands in the industry. Coinbase’s stock hasn’t gained as much as MSTR but is still up a respectable 55% this year. Over the past 52 weeks, Coinbase has gained nearly 260%!

With Coinbase, you’ll get more of a proxy for the entire crypto industry. The exchange offers hundreds of different cryptos including Ethereum, Solana, and even meme coins like Bonk. Coinbase is also the custodian for most of the main spot Bitcoin ETFs which earns it custody fees from the likes of Blackrock and Fidelity.

My Pick: Coinbase
I understand why you might want to invest in MicroStrategy as a proxy for Bitcoin. But for me, Coinbase is a better play for the whole industry. Coinbase has an actual business that I can follow and see where it is making revenues from. As the primary custodian for the spot Bitcoin ETFs, Coinbase should continue to benefit as long as in-flows are coming in. For a crypto bull market, Coinbase is the better stock to own!


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2024-03-16 11:30

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About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


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