Crypto Stock Pioneers COIN, CRCL, and MSTR Set to Capitalize on Latest Bitcoin Surge

Business Insider

2 days ago

Bitcoin (BTC-USD) has soared to a new all-time high of $122,757, pulling a wave of crypto-related stocks up with it. More broadly, the U.S. stock market offers several strongly performing crypto options for investors to consider, including Coinbase Global (COIN), Circle Internet Group (CRCL), and MicroStrategy (MSTR).
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Whether you're a believer or a skeptic, it's becoming increasingly clear: Bitcoin—and the broader crypto ecosystem, including Ethereum (ETH-USD) and a host of altcoins—are cementing their place in the mainstream investment landscape. Crypto is gaining traction among both retail and institutional investors alike. Furthermore, a pro-crypto administration currently occupies the White House, and Ric Edelman, one of the nation's most influential financial advisors, has recently suggested allocating 10–40% of investment portfolios to crypto. The influential advisor has been bullish on crypto for several years, with TipRanks maintaining coverage throughout.
Against this backdrop, here are three standout crypto stocks that equity investors may want to consider for gaining exposure to this rapidly expanding sector.
Coinbase Global (NASDAQ:COIN)
Any conversation about crypto-related stocks naturally starts with Coinbase (COIN)—the original publicly traded crypto giant and arguably still the most recognized name in the space. Its direct listing on the NASDAQ in 2021 marked a milestone moment, lending newfound legitimacy to the broader crypto industry.
Coinbase is best known as a go-to exchange and brokerage platform for both retail and institutional investors. But its offerings extend well beyond trading: the company provides secure crypto custody, staking services, crypto-reward credit cards, and even direct deposit options that allow users to receive paychecks in cryptocurrency.
With a platform holding $328 billion in assets, quarterly trading volume of $393 billion, and a market cap nearing $100 billion (as of the latest earnings report), Coinbase sits at the intersection of crypto's mainstream adoption and its market upside. It's not only facilitating the growth of the ecosystem, it's one of the biggest beneficiaries of it. For investors bullish on the long-term future of crypto, Coinbase is a cornerstone stock.
That said, valuation is the one caveat. After surging 65% over the past year, the stock is trading at about 67x projected 2025 earnings, rich by most standards. However, on a price-to-sales basis, it looks more grounded at roughly 13x 2025 revenue estimates. Even so, for those with a long-term view on crypto, Coinbase remains a compelling bet.
Is COIN a Good Stock to Buy?
Turning to Wall Street, COIN earns a Moderate Buy consensus rating based on 13 Buys, 11 Holds, and one Sell rating assigned in the past three months. The average COIN stock price target of $326.40 implies ~21% downside potential.
Circle Internet Group (NYSE:CRCL)
If Coinbase is the 'tried and true' heavyweight in crypto, then newly public Circle Internet Group (CRCL) is the shiny new breakout, drawing massive attention right out of the gate.
Since its IPO at $31 in June, Circle's stock has skyrocketed nearly 1,000%, peaking just under $300 before settling at a recent price of $233.20. That meteoric rise in less than two months has pushed the company's market cap to nearly $45 billion—not a bad debut by any standard.
For those less familiar, Circle is the issuer of USDC, a dollar-pegged stablecoin designed to maintain a 1:1 value with the U.S. dollar and fully backed by dollar reserves held by the company. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, USDC offers price stability, making it an attractive option for crypto traders seeking a safe, dollar-backed asset, as well as international users looking for a reliable store of value or a fast, low-cost method for cross-border transactions. The stablecoin has become a powerhouse, reaching a $63.5 billion market cap and facilitating over $25 trillion in on-chain transactions.
Circle's revenue model is deceptively simple and highly effective: it earns interest on the reserves backing USDC. In Q1 alone, that model generated $578.6 million in revenue and $122.4 million in adjusted EBITDA. Looking ahead, the company has also hinted at monetizing its network through new fee-based transaction services, potentially opening up another lucrative revenue stream.
While Circle's fundamentals are strong, the near-term concern is valuation. After its explosive rally, the stock is now trading at a lofty 147x projected 2025 earnings—more than double Coinbase's forward P/E. On a price-to-sales basis, it also looks stretched at 17x 2025 revenue estimates. I like the company and the model, but after such a dramatic run, the valuation gives me pause in the short term.
What is the CRCL Target Price?
CRCL carries a Hold consensus rating based on five Buys, five Holds, and two Sell ratings assigned in the past three months. The average CRCL stock price target of $185.73 implies almost 21% downside potential over the next 12 months.
Strategy (NASDAQ:MSTR)
Finally, let's turn to Strategy (MSTR), the company formerly known as MicroStrategy before a recent rebrand. Originally a business intelligence software firm that went public in 1998—well before Bitcoin even existed—Strategy has completely reinvented itself. Under the leadership of founder and now Bitcoin evangelist Michael Saylor, the company pivoted to a bold new direction: using Bitcoin as a corporate treasury asset. It all began with a $250 million purchase of 21,545 BTC. Since then, the company has aggressively expanded its holdings to an astonishing 601,550 BTC —by far the most significant corporate stash in existence.
The strategy has paid off handsomely. As Bitcoin's value surged, so did Strategy's market cap and share price. In fact, the stock has skyrocketed 3,748% over the past five years, essentially tracking the company's accumulation of Bitcoin.
Saylor deserves credit for his vision and conviction—buying Bitcoin early and in size has delivered major gains for shareholders. But despite that success, I'm hesitant to buy the stock at current levels. The vast majority of Strategy's value is tied directly to its Bitcoin holdings, making traditional metrics like price-to-earnings largely irrelevant. Instead, the more meaningful comparison is the market cap versus the value of its Bitcoin. Currently, there's a disconnect: Strategy's market cap stands at $123.5 billion, while its Bitcoin holdings are valued at approximately $71.2 billion. That's a hefty premium.
Moreover, Strategy no longer holds a monopoly on this approach. As noted by short seller Jim Chanos, over 100 public companies now hold Bitcoin on their balance sheets, meaning Strategy's once-unique position is becoming increasingly common—and that could erode its valuation premium over time.
If the company's market cap were to dip below the value of its Bitcoin holdings, I'd reconsider. But for now, I see little justification for buying Strategy at this elevated valuation.
What is the Target Price for MSTR?
MSTR stock carries a Strong Buy consensus rating based on 11 Buys, zero Holds, and one Sell rating assigned in the past three months. The average MSTR stock price target of $541 implies almost 20% upside potential over the next 12 months.
Coinbase Leads the Crypto Pack
Bitcoin and the broader crypto ecosystem have firmly established themselves as part of the mainstream financial landscape. For equity investors seeking to capitalize on this growth, crypto-related stocks provide a compelling means of gaining exposure.
Among the major players, I'm most bullish on Coinbase. Its comprehensive suite of products—spanning everything from trading and custody to staking and crypto-reward cards—gives investors broad exposure across the entire digital asset spectrum, including Bitcoin, Ethereum, altcoins, and stablecoins. Coinbase also enjoys strong brand recognition and a long-standing reputation in the industry. While the stock has had a strong run and is trading at a premium, its valuation still appears reasonable, especially when compared to the much more richly priced Circle.
Speaking of Circle, I appreciate the company's long-term outlook and its core business model, centered around USDC, one of the most widely used stablecoins globally. However, after its post-IPO surge, the stock now looks significantly overvalued. I'd prefer to wait for a meaningful pullback before considering a position.
As for Strategy (formerly MicroStrategy), there's no denying that CEO Michael Saylor made a bold and savvy move by pivoting early into Bitcoin. But at this point, the stock's value is almost entirely tied to its Bitcoin holdings, and it trades at a significant premium to the actual value of those assets. With other public companies now following a similar playbook, Strategy's unique edge has diminished. Of the three, it's the least compelling buy at current levels.
In short, for investors bullish on the long-term future of crypto, Coinbase remains the most balanced and attractive equity play in the space today.