These 6 Stocks Offer the Highest Exposure to Crypto and Blockchain - Goldman Sachs

April 7, 2022 9:37 AM EDT
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Goldman Sachs' analysis of companies with market caps over $1 billion yielded 26 US stocks that have high exposure to blockchain and/or cryptocurrency.

14 companies from last year remained on the bank’s list, while 12 new were added. Also, 5 companies from last year were dropped after the latest screening process. 11 of the total 26 stocks operate in the Software & Services industry, while 8 are finance-related companies.

Following Bitcoin’s slump late last year, these companies have significantly underperformed the S&P 500 index during the period between October and the end of January. Since January end, the stocks have outperformed the S&P 500 by 3 pp, driven by Bitcoin’s 19% recovery.

The correlation between an equal-weighted portfolio of the stocks with BTC and the Bloomberg Galaxy Crypto Index stood at roughly 67%, while correlations for the S&P 500 index were 47%, according to Goldman Sachs strategist David Kostin.

Although the constituents are correlated with Bitcoin, the world’s largest cryptocurrency has also demonstrated a strong correlation with equity index returns in the recent period.

Out of 26 stocks, these 6 companies offer investors by far the highest exposure to track or trade blockchain and/or cryptocurrencies as a theme in the equity market.

  • Marathon Digital (NASDAQ: MARA)
  • Riot Blockchain (NASDAQ: RIOT)
  • MicroStrategy (NASDAQ: MSTR)
  • Silvergate (NYSE: SI)
  • Block (NYSE: SQ)

By Senad Karaahmetovic

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