The largest company in the industry is Coinbase, which accounts for more than 60% of the capitalization.
Mining companies grew the most in valuation during 2021.
If someone wanted to buy all the companies in the bitcoin (BTC) and cryptocurrency industry listed on the world’s stock exchanges, they would have to shell out USD 94.547 billion (equivalent to almost 2 million BTC at the time of writing).
The figure comes from a study
conducted by research company CoinShares, which is titled “The Arrival of Cryptocurrency Stocks”. There, investment analyst Alexandre Schmidt details the numerical growth of these companies, which the specialist describes as “a dramatic increase”.
Between January and August this year, almost as many companies came to the stock market as in 2019 and 2020 combined.
Between exchanges, mining equipment manufacturers, mining companies, fintechs and hardware manufacturers for the bitcoin industry, a total of 57 listed companies are accounted for. The most well-known names include Marathon, Silvergate, Canaan, Ebang and Northern Data. Most of the cryptocurrency companies listed on the stock market are in the United States, followed by Canada, Sweden, Germany, the United Kingdom and Hong Kong.
since April 14.
Coinbase is the company with the largest market capitalization on the stock market, of those that make up the cryptocurrency industry: USD 72.4
billion at the time of writing this article. The market capitalization of Coinbase, a company listed on the Nasdaq, is USD 72.4 billion. Source: Yahoo Finance.
In bull cycles, the stock market bitcoinizes
The CoinShares report shows an apparent relationship between the price of bitcoin
and the number of companies going public in global markets.
It is evident, as seen in the graph below, the coincidence between the all-time high reached by BTC in 2017, close to USD 20,000, with a considerable increase in bitcoiner companies hitting the exchanges the following year. The number of additions went from 3 in 2017 to 14 in 2018
Something similar is observed in 2021, a year that began with the cryptocurrency market breaking price records and continued to do so in the following months. 16 companies in the industry hit the stock markets so far this year, twice as many as last year.
The number of cryptocurrency companies going public increases or decreases along with the price of bitcoin. Source: CoinShares.
Coinbase effect: money is going to exchanges
The CoinShares report breaks down cryptocurrency
industry companies going public by subsector.
The largest sector, in terms of number of companies, is mining (35%); this is followed by financial services companies (33%); exchanges (26%); then hardware manufacturers (4%) and other companies (2%).
In terms of market capitalization, the order is different. The first place, with the help of the giant Coinbase, which has almost the entire market, goes to exchanges (64%), followed by financial services (19%). Mining companies are relegated to third place (15%) and hardware manufacturers are last, with just 2% of the market.
Cryptocurrency mining is the industry with the most publicly traded companies, but exchanges have the lion’s share of the capitalization. Source: CoinShares.
China effect: mining companies are increasing their valuation the most
CoinShares also compares cryptocurrency companies by percentage increase in valuation so far in 2021
In this regard, mining companies lead the ranking with 121% increase, on average. They are followed by financial services companies with 105% average increase. Exchanges lag behind, with a growth of only 34% in their valuation.
Unlike the rest of the industry, hardware manufacturers have seen their valuation decline by 9%, which is attributed to the 62% price drop in Ebang shares so far this year.
The notable increase in the valuation of mining companies is attributable to several factors. One of them, according to the study, is the rise in cryptocurrency prices, with the bull cycle starting in 2020.
, a fact that was reported in a timely manner by CryptoNews, would also have had an influence.
A low mining difficulty, facilitates the resolution of the <a href=”https://www.criptonoti
cias.com/criptopedia/how-to-mining-bitcoin-cryptocurrencies/” target=”_blank” rel=”noopener”>mathematical puzzles by mining computers. It would be because of this, according to CoinShares, that “despite the declines in cryptocurrency prices since May, mining operations remain very profitable.”
The industry will continue to be interesting for investors, with one condition
In conclusion, Alexandre Schmidt speculates that the cryptocurrency business will remain attractive to large-cap investors, provided that the price of BTC continues to rise.
The specialist also predicts that, from now on, with the restrictions on exchanges and miners in China, the Bitcoin industry could gain renewed interest for Western investors.