S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
NIH to fund unproven ALS drugs under patient-backed law
Russia blindfolds, detains Ukraine nuclear plant chief
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
NIH to fund unproven ALS drugs under patient-backed law
Russia blindfolds, detains Ukraine nuclear plant chief
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
NIH to fund unproven ALS drugs under patient-backed law
Russia blindfolds, detains Ukraine nuclear plant chief
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
Market Wizard Reveals: The One Ticker Retirement Plan (Ad)
NIH to fund unproven ALS drugs under patient-backed law
Russia blindfolds, detains Ukraine nuclear plant chief

3 Stocks With Crypto Exposure Forming Price Consolidations

3 Stocks With Crypto Exposure Forming Price ConsolidationsCrypto mania is bringing attention not only to the ever-burgeoning universe of currencies, but also to stocks like Coinbase Global (NASDAQ: COIN) and Marathon Digital Holdings (NASDAQ: MARA), as well as companies with high crypto exposure, like MicroStrategy (NASDAQ: MSTR)

Sure, the underlying industry or business case for a company makes a huge difference when selecting investments or trades. If there’s an industry-wide downturn or some kind of economic development affecting a company’s broader environment, the stock itself has a good chance of languishing. 

It’s also not necessarily the case that every stock from a “hot” industry will be a winner. 

There’s no shortage of new fintech companies. Of course, companies focused on blockchain and cryptocurrency are among those. 

Bitcoin and other cryptocurrencies are off their recent highs, but that’s not necessarily a ding on companies involved in various aspects of the crypto industry. 

These days, companies not involved in crypto mining or trading are staking much of their value on crypto. There are several new twists on “crypto exposure,” and investors can probably expect to see more. 

Are these stocks shrewd buys, or should you avoid them?

Coinbase went public on April 14, using a direct listing, rather than a traditional IPO. Ultimately, for retail investors, the means of bringing a company public doesn’t matter, if you are thinking of buying shares. Yes, the lack of IPO can affect the company’s financial structure and ability to raise capital, but that may or may not affect investors and traders down the road.


The crypto-buying app popped the day of its listing, then immediately pulled back. That’s not at all unusual for a new stock, and doesn’t mean the listing was a failure. 

It shouldn’t come as a shock that the company was profitable in 2020, when people were home with extra cash from stimulus checks, and wanted a piece of the crypto trade. 

If there’s a knock on the company, it may be that prices will tank or investors will sour on ethereum and bitcoin, two popular cryptocurrencies that generate revenue for Coinbase. There’s precedent for that: Revenue was erratic in 2019, as crypto prices were volatile. 

It’s far too early in the company’s life as a public company to purchase shares. Let it develop a trading history, and watch how the company is able to maintain sales and earnings growth. 
3 Stocks With Crypto Exposure Forming Price Consolidations

MicroStrategy, which is not a crypto company per se, has heavy balance-sheet exposure to bitcoin. The company was on the receiving end of a major investment bank ban on buying its shares - something you don’t see every day with stocks listed on a major exchange. 

Last month, British bank HSBC said it would ban customers on its InvestDirect platform from buying shares of MicroStrategy. 

Why would it take such a seemingly drastic move? Because it was concerned about CEO Michael Saylor’s moves to invest the company’s cash holdings into bitcoin. Not only did the company park cash in bitcoin, but in February, it issued debt to purchase more. 

MicroStrategy provides enterprise business intelligence and analytics for use in various industries. 

Unfortunately for investors, revenue at the enterprise software business - the part of the company that’s not a bitcoin bet - has been on the decline. 

So what is the long-term plan here? Other companies, such as Tesla and Square have also invested heavily in bitcoin. It remains to be seen how much companies from other industries will pivot to being “crypto” companies, or if they settle down and refocus their attention on their stated business models.

The company reported a first-quarter loss of $11.40 per share after the close Thursday. Adjusted for costs and a one-time gain, the company earned $1.54 per share. Revenue was $122.9 million. 

MicroStrategy is expected to see an earnings decline to the tune of 32% this year. That combined with the risky and uncertain nature of its bitcoin adventures, makes it something to avoid, for now, anyway. 
3 Stocks With Crypto Exposure Forming Price Consolidations

Cryptocurrency miner Marathon Digital Holdings is currently forming a correction after pulling back from its April 6 high of $57.75. 

The company has been busy. Last month, it announced a North American mining pool. A crypto mining pool is composed of miners who share the computing power in the process of mining. Rewards are also shared among the miners in the pool. 

Earlier this month, Marathon said its bitcoin mining capacity grew more than 100% in the first quarter of the year. 

Marathon has had an erratic history of moving in and out of profitability, not ideal when you’re considering an investment. 

The company’s fate, at least for the moment, seems to rest largely on bitcoin prices. 

Wall Street is optimistic about the Marathon’s fortunes, expecting earnings of $2.10 per share this year, a change of direction after four years of losses. 
3 Stocks With Crypto Exposure Forming Price Consolidations

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
MicroStrategy (MSTR)
1.8899 of 5 stars
$212.26+0.2%N/A-1.80Hold$500.67
Coinbase Global (COIN)
2.3833 of 5 stars
$64.49+4.1%N/A-31.93Moderate Buy$151.18
Coinbase Global (COIN)
2.3833 of 5 stars
$64.49+4.1%N/A-31.93Moderate Buy$151.18
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in MicroStrategy right now?

Before you consider MicroStrategy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and MicroStrategy wasn't on the list.

While MicroStrategy currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Kate Stalter

About Kate Stalter

Contributing Author: Retirement, Asset Allocation, and Tax Strategies

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies. Kate also serves as a capital-markets contributor at Forbes.com, and is an expert columnist for the investment advisory channel at U.S. News & World Report.
Contact Kate Stalter via email at stalterkate@gmail.com.
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