Increasing Your Exposure to Crypto Through Stocks
The crypto market continues to sizzle with Bitcoin prices holding steady above $60,000, despite a recent dip. While buying Bitcoin directly is one way to get in on the action, there are other avenues to explore, including investing in conventional stocks with exposure to the crypto space.
One such stock to watch is PayPal (PYPL), a company known for its payment services with over 400 million users worldwide. PayPal made a strategic move in 2013 by acquiring Venmo, a popular peer-to-peer money app. Venmo has seen explosive growth in recent years, with users transacting nearly $70 billion last quarter, a portion of which involved crypto payments. With the introduction of crypto payments on Venmo, users can now buy and transact in various cryptocurrencies, including Bitcoin.
While PayPal’s traditional business has faced challenges, the company’s foray into crypto could be a game-changer. With a massive user base and the potential to integrate crypto seamlessly, PayPal is poised for significant growth in the crypto space. The stock is currently trading at a discount, presenting an attractive opportunity for investors looking to capitalize on the crypto boom.
Another stock worth considering is Block (SQ), which also has exposure to crypto payments through its Cash App. In addition to offering crypto transactions, Block has other crypto-related business lines, including software divisions that support the development and adoption of crypto. Its Square platform allows merchants to accept crypto payments, while its music streaming app, Tidal, could benefit from blockchain technology in the music industry.
Like PayPal, Block stock is currently undervalued, trading at just 2 times sales compared to its historical multiple of over 10. While growth has slowed for the company, long-term believers in the crypto space see Block as a prime opportunity for direct exposure to the crypto market.
Both PayPal and Block stocks offer investors a unique opportunity to ride the wave of the crypto revolution. With the potential for explosive growth in the coming years, these stocks are ones to watch for those looking to capitalize on the red-hot crypto market.
