Shares of listed companies with a high degree of exposure to blockchain technology and cryptocurrencies have “dramatically outperformed” the rest of the stock market this year.
Analysts at Goldman Sachs, the major US investment bank, have identified 19 different listed companies that outperform the S&P 500. These companies have delivered an average return of 43% this year, three times more than the S&P 500’s 13%, but still far below 90% of bitcoin (BTC).
On the list we find several companies that are now known in the crypto industry for their large investments. For example, Tesla and MicroStrategy are mentioned with their billions of investments in bitcoin.
Facebook is also mentioned with the plan to launch its own stablecoin, as well as Square, the payment company of Twitter CEO Jack Dorsey. From the traditional financial sector, we find PayPal, Mastercard and Visa on the list. Furthermore, video card maker Nvidia and the large American cryptocurrency exchange Coinbase are also mentioned.
The biggest winners on the list are two crypto-mining companies. Shares of Las Vegas-based Marathon Digital Holdings are up 218% this year and shares of Colorado-based Riot Blockchain are up 151%. Analyst Dan Ives says the following about it:
“The story here is much bigger than just investing in bitcoin and predicting potential prices. It’s about the possible consequences that crypto, blockchain and bitcoin could have in the corporate world for the next decade.
Given the still burgeoning and volatile nature of bitcoin, we think less than 5% of listed companies will invest in the next 12 to 18 months, but that could be significantly higher as regulation and adoption increase. ”