Pro-Business Crypto Policies Under Trump Administration
During the upcoming 2024 election cycle, current President Donald Trump has pledged a new business-friendly approach to the cryptocurrency sector. This commitment, along with a comprehensive reassessment of global trade anticipated for 2025, is prompting investors to concentrate on top-tier American crypto companies. Here are three noteworthy crypto stocks that are currently on my radar, all leveraging domestic innovation for future growth, and are well-positioned to benefit from the pro-crypto policies championed by the Trump administration.
Coinbase Global: A Major Player in Crypto Trading
Established in 2012, Coinbase Global (COIN -1.07%) has risen to become the world’s second-largest cryptocurrency exchange. The company made headlines with its initial public offering (IPO) in April 2021, which remains the largest in the history of the crypto sector. Fast forward four years, and Coinbase has successfully entered the S&P 500, marking a significant milestone as the first cryptocurrency trading platform to achieve this status. For many investors, Coinbase serves as a proxy to gain exposure to the broader crypto market without directly purchasing cryptocurrencies. Although Bitcoin (BTC 1.21%) and Ethereum (ETH 1.27%) dominate nearly half of Coinbase’s trading volume, the platform now supports trading for over 200 different digital assets. Coinbase is at the forefront of product innovation, consistently introducing new digital assets for trading. Additionally, the company advocates for improved and transparent regulations within the industry, along with new pro-business initiatives from the government. This positions Coinbase for robust growth as a leading competitor in the market.
Strategy: The Bitcoin Treasury Innovator
Strategy (MSTR 0.75%), previously known as MicroStrategy, has emerged as the largest corporate owner of Bitcoin. The company initiated an ambitious Bitcoin acquisition strategy in August 2020, led by its founder and executive chairman, Michael Saylor, who has become a prominent advocate for Bitcoin. Strategy has pioneered the model of a Bitcoin treasury company, essentially focusing solely on acquiring Bitcoin. Utilizing various leverage methods, including convertible debt, Strategy has the potential to outperform Bitcoin itself. This may sound improbable, but the numbers speak for themselves: while Bitcoin has appreciated by a respectable 13% this year, Strategy has surged an impressive 44%. Over the past five years, Strategy has not only outperformed Bitcoin but has also surpassed nearly every stock in the S&P 500. Unsurprisingly, this success has inspired a wave of similar companies, including recent entrants like entrepreneur and politician Vivek Ramaswamy, who is converting his business, Strive Asset Management, into a Bitcoin treasury company through a reverse merger. Moreover, Strategy has played a key role in advocating for a Strategic Bitcoin Reserve for the federal government, with Saylor currently encouraging the U.S. Treasury to initiate its own Bitcoin acquisition efforts. Such developments could significantly enhance Strategy’s fortunes, given its substantial Bitcoin holdings.
MARA Holdings: Leading Bitcoin Mining Stock
MARA Holdings (MARA -0.67%), formerly Marathon Digital Holdings, stands as the largest publicly traded Bitcoin mining company. In terms of Bitcoin holdings, the company ranks second only to Strategy, with its Bitcoin assets valued at approximately $5 billion. During his 2024 campaign, Trump discussed a vision where all Bitcoin mining occurs within the United States, which makes MARA particularly attractive. The company operates extensive mining facilities in Texas, North Dakota, and Nebraska, all of which may benefit from future government investments in the Bitcoin mining sector. Looking ahead, MARA is also investigating innovative ways to utilize its substantial computing power, including applications in artificial intelligence (AI). While this is still in the early stages, MARA has proposed the idea of becoming a foundational computing resource for AI technologies.
The Global Landscape of Cryptocurrency
While being an American crypto company does not inherently guarantee success, the cryptocurrency industry is undeniably global, with numerous international competitors striving to replicate the achievements of American crypto leaders. For instance, Tokyo-based Metaplanet has rebranded itself as “Asia’s Strategy” following an $800 million Bitcoin acquisition initiative, while Binance (BNB 1.57%), a platform originally founded in China, continues to outpace Coinbase in terms of size and global influence. Nevertheless, the Trump administration has clearly prioritized the cryptocurrency sector, which is likely to enhance the prospects of these three notable crypto stocks—each a leader in its field with substantial growth potential on the horizon.
