Crypto Proxy Stocks
It has become increasingly common for companies to adopt policies of maintaining bitcoin and other cryptocurrencies in a corporate treasury. Depending upon the size of the holdings, the stock may begin to trade similarly to the market directions of the cryptocurrencies they hold. As a result, these stocks can be used as a sort of proxy or replacement for owning the actual crypto itself. A benefit to this is that in bullish crypto markets, it can be a boon to a company's stock, but conversely, during a long crypto winter, it can depress the companies stock price. It provides an interesting way to potentially diversify your exposure to crypto because there is still generally an underlying business that brings value to the stock in addition to any gains from the crypto holdings.
There have been cases where a company that's failing in its primary business, will adopt a crypto treasury program in an attempt to salvage their company. This occurs sometimes in the "meme stocks" such as Gamestop (TICKER: GME).
Potential Crypto Proxy Stocks
MicroStrategy [TICKER: MSTR]
This is a business intelligence firm who adopted Bitcoin as it's primary treasury reserve asset. This reserve has grown to be quite large and as a result, these company's stockntends to trade with a high correlation to the Bitcoin proce action. This stock is one of the original, and possibly closest proxies to the underlying crypto it holds.
Tesla [TICKER: TSLA]
While Tesla is a high flying stock that trades on its vast technological potentials, and the vision of its CEO Elon Musk, it also carries nearly a Billion dollars worth of primarily Bitcoin reserves as of March 31, 2025. This is actually a reduction from prior levels in the company. Tesla reportedly sold 75 percent of its crypto holdings back in July of 2022.
Coinbase [TICKER: COIN]
Coinbase is one of the largest and most recognized Crypto exchanges in the U.S. and beyond. Because their business is so closely tied to the fees they collect through crypto investment transactions, the stock relies heavily in the performance of the crypto markets. In appreciating crypto markets, there is an influx of purchases and interest in cryptocurrencies, which drive a large portion of Coinbase's profits. While the exchange is attempting to diversify its revenue streams, it still plays a major role. Additionally, the company also carries a sizeable Bitcoin reserve, which solidifies it's position as a Bitcoin proxy stock, and potentiallybone for the crypto market overall.
Galaxy Digital Holdings [TICKER: GLXY]
This is a diversified financial services and investment management firm. They maintain a massive Bitcoin reserve, that allows this company to serve as a Bitcoin proxy. This company will also appear on our list of Bitcoin Technology Stocks, as it is very active in the adoption of blockchain technologies.
Riot Blockchain [TICKER: RIOT]
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