While Bitcoin and Ethereum often dominate headlines, the companies building the underlying infrastructure for cryptocurrencies are poised to have a lasting impact on the financial landscape. These ‘blockchain behemoths’ are crucial for the decentralized finance (DeFi) revolution, and many are publicly traded companies that offer potential investment opportunities.
Key Players in the Blockchain Ecosystem
Several companies stand out as leaders in this rapidly evolving sector. Here are some of the biggest publicly traded blockchain companies in the U.S. and Canada by revenue as of mid-2024, either directly or through American depositary receipts (ADRs):
1. NU Holdings Ltd. (NU)
- Revenue (TTM): $9.146 billion
- Revenue (2023): $8.029 billion
- Net income (TTM): $1.268 billion
- Market Cap: $64.11 billion
- One-year trailing price return: 72.8% (as of July 15, 2024)
- Exchange: NYSE
NU Holdings specializes in digital banking services. Its subsidiary, Nubank, has partnered with Fireblocks, a U.S.-based enterprise platform, to manage digital asset operations and develop blockchain products. NU has seen strong growth in its customer base and revenue per customer, becoming the fourth-largest bank in Brazil by member count. Expansion efforts in Mexico and Colombia have also shown promise. In early 2024, NU Holdings announced it had reached 100 million customers.
2. Coinbase Global, Inc. (COIN)
- Revenue (TTM): $3.973 billion
- Revenue (2023): $3.108 billion
- Net income (TTM): $1.349 million
- Market cap: $53.54 billion
- One-year trailing price return: 153.7% (as of Jul 15, 2024)
- Exchange: Nasdaq
Coinbase is the largest cryptocurrency exchange in the U.S. Its platforms cater to both retail and institutional investors with products like Coinbase Pro, Coinbase Wallet, and USD Coin. Coinbase’s role as a custodian and prime broker for spot bitcoin exchange-traded funds (ETFs) has significantly increased its value. However, the company is currently engaged in a legal battle with the Securities and Exchange Commission (SEC).
3. Core Scientific, Inc. (CORZ)
- Revenue (TTM): $561.04 million
- Revenue (2023): $502.4 million
- Net income (TTM): -$35.41 million
- Market cap: $1.80 billion
- One-year trailing price return: 153.7% (as of Jul 15, 2024)
- Exchange: Nasdaq
Core Scientific is involved in both cryptocurrency mining and hosting services. The company mines Bitcoin and provides infrastructure and services for third-party clients.
4. MicroStrategy Inc. (MSTR)
- Revenue (TTM): $489.59 million
- Revenue (2023): $496.26 million
- Net income (TTM): -$85.19 million
- Market cap: $24.77 billion
- One-year trailing price return: 237.8% (as of Jul 15, 2024)
- Exchange: Nasdaq
MicroStrategy is a software company that specializes in enterprise analytics and mobility. They plan to launch MicroStrategy Orange, a decentralized identity product. As of Q1 2024, MicroStrategy held 214,400 BTC and announced a 10-for-one stock split in July 2024.
5. Marathon Digital Holdings, Inc. (MARA)
- Revenue (TTM): $501.57 million
- Revenue (2023): $387.51 million
- Net income (TTM): $605.58 million
- Market cap: $5.67 billion
- One-year trailing price return: 23.19% (as of Jul 15, 2024)
- Exchange: Nasdaq
Marathon is a major player in cryptocurrency mining, focusing on Bitcoin. As of mid-2024, the company held 18,536 BTC.
6. Riot Platforms, Inc. (RIOT)
- Revenue (TTM): $286.74 million
- Revenue (2023): $280.68 million
- Net income (TTM): $217.99 million
- Market cap: $2.83 billion
- One-year trailing price return: -44.5% (as of Jul 15, 2024)
- Exchange: Nasdaq
Riot Platforms, Inc. is involved in Bitcoin mining and offers specialized cryptocurrency mining computers. The company also invests in other blockchain-related firms and operates across three segments: Bitcoin mining, data center hosting, and engineering.
How These Companies Make Money
Blockchain itself is a technology, but the companies that utilize blockchain are often generating revenue from multiple sources. Companies in this space generate revenue through:
- Transaction fees
- Block rewards
- Network services
- Initial coin offerings (ICOs) and token sales
- Consulting and development services
- Enterprise products and subscriptions
- Staking
The Growing Blockchain Industry
The blockchain industry is seeing significant growth, fueled by advancements in technology and increased adoption across various sectors. The approval of spot crypto ETFs is one example of the sector’s expanding reach.
Many factors contribute to the rapid growth of blockchain technology. These include the increasing number of developers working on various blockchain ecosystems, rising transaction volumes, and growing user adoption. The rapid development and expansion of these technologies also continue to shape future opportunities.
In conclusion, Nubank, Coinbase, Core Scientific, MicroStrategy, Marathon Digital Holdings, and Riot Platforms are key players in the blockchain sector, with revenue figures that indicate strong growth potential. As the industry matures and the DeFi space evolves, these companies are on the cutting edge of innovation, building the future of finance.
