Enterprise Bitcoin (CCC:BTC-USD) miner Marathon Digital Holdings (NASDAQ:MARA) reported its April production numbers on May 3. Instead of moving higher on the news, MARA stock moved lower.
Further, over the past month, Marathon Digital’s stock’s lost one-third of its value. It would seem that investors have decided MARA stock is not the best way to play crypto in 2021.
If that’s the case, what are the best bets over the next eight months and beyond? I’ve got three suggestions.
InvestorPlace’s Faizan Farooque recently discussed five Blockchain ETFs that are making things happen. Of the five, Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK) has gathered the most assets at $1.29 billion. It’s also the only ETF of the bunch that owns some of the crypto miners, including Marathon Digital, at 3.87% of its portfolio.
So, I’m going to go with three of its holdings.
The First Choice Other Than MARA Stock
“[W]e intend to concentrate our efforts in identifying a target in the disruptive technology market with an equity value of approximately $300 million to $1 billion,” states its prospectus. “We believe disruptive technology companies that focus on blockchain and artificial intelligence are potential attractive targets.”
I realize it’s a bit of a moonshot, but given the SPAC’s CEO is already involved in a moonshot artificial intelligence company backed by high-profile investors such as the Gigafund, I couldn’t resist.
I’ve lost some of my interest in SPACs, but given it’s trading below its $10 IPO price as I write this, I feel as though the downside isn’t nearly as high as what might happen to MARA stock should it report any bad news in the next 2-3 months.
The Second Choice Is BLOK’s Top Holding
MicroStrategy (NASDAQ:MSTR) is the top holding in BLOK with a weighting of 5.41%. If you’re unfamiliar with MSTR, it is a provider of enterprise data analytics and business intelligence software.
However, the company’s decision to purchase Bitcoin for its balance sheet has garnered so much interest.
“In 2020, our company determined that there was a tectonic shift taking place in the financial markets and overall economy. To meet the cost of capital and to enhance the value of the company, we took the innovative approach of adopting bitcoin as our primary treasury reserve asset,” CEO Michael Saylor wrote in MicroStrategy’s 2020 shareholder letter. “We were the first publicly-traded company to pursue this
strategy and purchase bitcoin on a large scale.”
It held 91,579 Bitcoin as of Apr. 5, 2021. These were purchased at an average price of $24,311 per Bitcoin. As I write this, Bitcoin is trading at $56,127. That’s a 131% return on its investment to date.
In a Time Marathon Digital’s Bitcoin Production Heads Higher While MARA Stock Heads Lower