A Rollercoaster Year for Cryptocurrency Stocks

A milestone year for the cryptocurrency market set the stage for a rollercoaster year for crypto-related stocks traded in the U.S. Among the standout developments were the debut of spot Bitcoin ETFs, the latest Bitcoin halving in April, and an embrace from President-elect Donald Trump.

These events brought renewed focus to the sector. Trump’s endorsement added a political dimension to the Bitcoin narrative, bolstering its mainstream appeal and injecting fresh optimism into the market.

The introduction of spot Bitcoin ETFs marked a significant milestone, providing retail and institutional investors with a streamlined way to gain direct exposure to the cryptocurrency. The Bitcoin halving, meanwhile, added a layer of complexity for miners. While some companies capitalized on the year's opportunities, others grappled with operational difficulties and declining stock prices.

Overall, the S&P 500 has appreciated 25% year-to-date while the price of bitcoin has risen nearly 120%. Of note, crypto-adjacent stocks such as Robinhood, up 203%, and Block (formerly known as Square), up 24%, had a strong year.

Best and Worst Performers of 2024

Best

1. MicroStrategy (MSTR): +402%, $83 billion market cap
   Ostensibly a business intelligence firm, it is the largest corporate holder of bitcoin and has kept buying cryptocurrency during the year.
   As of Dec. 23, MicroStrategy held an approximated aggregate of 440,000 bitcoin worth over $40 billion.

2. Core Scientific (CORZ): +307%, $3.9 billion market cap
   This North American bitcoin mining and hosting services provider signed a series of 12-year contracts with AI Hyperscaler CoreWeave in July, giving it a first-mover advantage among peers following the April halving.

3. Terawulf (WULF): +142%, $2.15 billion market cap
   The infrastructure-focused bitcoin mining company has increased its self-mining hashrate capacity of 10.0 EH/s as of Sept. 30.

4. Hut 8 (HUT): +75%, $2.06 billion market cap
   Recently rated “overweight” by Cantor Fitzgerald, Hut 8 has accumulated significant power capacity.

5. Bitdeer Technologies (BTDR): +122%, $2.75 billion market cap
   Bitdeer is set to boost its self-mining efforts by integrating a portion of the rigs into its own mining fleet.

6. Iris Energy (IREN): +65%, $2.4 billion market cap
   Achieved a 33% increase in installed capacity in November, reaching 28 EH/s.

7. Coinbase (COIN): +69%, $66.5 billion market cap
   Announced a $1 billion share repurchase program and significant resource increase.

8. Cipher Mining (CIFR): +28%, $1.8 billion market cap
   Macquarie analysts said Cipher is “hitting its stride.”

9. Canaan (CAN): -5%, $620 million market cap
   Focused on ASIC high-performance computing chip design and development.

10. CleanSpark (CLSK): -6%, $2.9 billion market cap
    Targeting a significant increase in hash rate by 2025.

Worst

1. MARA Holdings (MARA): -16%, $6.5 billion market cap
   Recently accelerated its bitcoin buying and holds a significant amount of BTC.

2. Bit Digital (BTBT): -17%, $485 million market cap
   Pioneered a business model integrating Bitcoin mining and Ethereum staking.

3. Hive Digital (HIVE): -32%, $522 million market cap
   Reported improved losses and mined 340 bitcoins in the quarter.

4. Riot Platforms (RIOT): -27%, $3.7 billion market cap
   Increased BTC holdings to 17,429.

5. Bitfarms (BITF): -43%, $917 million market cap
   Involved in a takeover saga that lasted much of the year.

6. Greenridge Generation (GREE): -74%, $25 million market cap
   Faced a permit denial over compliance with state climate regulations.

7. Argo Blockchain (ARBK): -80%, $44 million market cap
   Focused on cryptocurrency mining with operations in the U.S and Canada.

8. Gryphon Digital Mining (GRYP): -92%, $23 million market cap
   Reported a revenue decline with a net loss in the latest quarter.