Can You Invest in Crypto Companies? A Clear Guide for Investors

Crypto and especially Bitcoin are often all over the headlines, but owning the most well-known token isn’t the only way to get involved. You can still tap into the growth of the crypto sector by investing in companies and funds connected to blockchain. These investments may let you gain exposure without needing to store or trade tokens yourself. Let’s explore your options and what to consider before jumping in.

Investing in Crypto Companies

One of the most direct ways to gain exposure to the crypto world that doesn’t require you to hold any tokens is buying shares in companies that operate in this space. These are businesses that make money from the crypto market, either by offering services, mining coins, or building the tools behind the scenes.

Crypto exchanges like Coinbase (COIN) run platforms that allow people to buy and sell digital currencies. Their income depends on trading activity, so when crypto interest rises, these companies often benefit.

Then there are mining firms such as Marathon Digital (MARA) and Riot Platforms (RIOT). These businesses earn crypto through mining and help keep blockchain networks running. Their performance often reflects Bitcoin price trends.

Hardware makers like NVIDIA (NVDA) and AMD produce the machines that power mining operations. Even though they serve other industries too, their sales can rise when mining demand is high.

These businesses offer a way to gain crypto exposure with regular stocks. They’re easier to access through traditional brokers and may offer more familiar investment terms.

Watch for Companies Holding Crypto

Another way to invest indirectly is by buying stock in firms that hold digital currency on their balance sheets. These companies see crypto as a long-term asset or part of their business strategy.

This is where you might come across mentions of a new crypto currency being adopted or held by one of these firms. As the crypto space keeps growing, new tokens are regularly introduced with specific use cases like those for payments, smart contracts, or powering blockchain apps. 

Some companies choose to support these newer coins early, either for strategic reasons or because they believe in the underlying technology. When larger firms show interest in a new token, it often signals potential for growth and wider adoption.

For example, MicroStrategy (MSTR) is known for its massive Bitcoin holdings with over 500,000 coins. Its share price often rises and falls with the value of Bitcoin. But other companies are exploring different digital assets that may play unique roles in the future of finance and tech.

Further, Block (SQ), previously Square, owns Bitcoin and includes crypto features in its Cash App. While not a pure crypto play, its exposure is meaningful and continues to grow. Another famous company, Tesla (TSLA), and MassMutual have also made headlines for holding crypto. While these holdings don’t always drive their core value, they add an extra layer for investors to consider.

If you want crypto exposure without diving into wallets or exchanges, these stocks may be a good place to start. Keep an eye on the ones experimenting with newer tokens, as those bets can sometimes offer fresh upside.

Private Investments and Startups in Crypto

If you're open to more risk and less liquidity, investing in early-stage crypto companies and startups could be another option. Many of these businesses aren’t on the stock market. Instead, they raise money through private funding rounds, and some accept individual investors with the right connections or capital.

Crypto startups often work on new blockchains, wallets, security tools, or payment systems. Some focus on DeFi (decentralized finance) or NFTs. Because they’re still young, they usually come with higher risk, but also higher potential reward if the project succeeds.

But keep in mind that access can be limited. Some investments require accreditation or involve venture capital platforms. But in recent years, platforms like Republic and SeedInvest have made it easier for non-institutional investors to join select private offerings, including ones in crypto.

If you're looking for something earlier than stocks or ETFs and have the risk appetite, these startup opportunities might be worth exploring. Just be sure to research deeply. Early wins are possible, but losses are common too.

Companies Using Blockchain in Everyday Business

Crypto isn’t just about tokens but about the blockchain, which powers it, and plenty of companies are putting this tech to work.

Tech firms like IBM build blockchain platforms for secure transactions, logistics, and data storage. Even Amazon and Alibaba are using blockchain through their cloud services. They offer tools for supply chain tracking, digital identity checks, and business contracts.

In banking, JPMorgan uses blockchain to settle trades, process payments, and has recently even pushed for creating a stablecoin-like token. It helps lower costs and speed up cross-border transactions. These companies are worth watching if you’re more interested in the real-world uses of blockchain than the ups and downs of crypto prices.

Investing in Crypto Funds and ETFs

If picking individual stocks feels like too much work, you can still gain crypto exposure through funds. These include ETFs (exchange-traded funds) and mutual funds built around the crypto theme.

Some funds hold digital currencies directly. For example, the Fidelity Advantage Bitcoin ETF (FBTC) owns Bitcoin. Others track crypto stocks. The Schwab Crypto Thematic ETF (STCE) holds shares in crypto-focused companies, offering a broader, more balanced exposure.

Mutual funds like Fidelity’s Bitcoin Strategy ProFund (BTCFX) may invest in crypto futures or stocks connected to blockchain. Funds are simple to buy through most brokerages and let you spread risk across many companies or coins. They’re also regulated, which adds some peace of mind.

Final Thoughts

You don’t need to buy coins to invest in crypto. Stocks, funds, and blockchain-focused companies all offer ways in. Whether you back a mining company, a Bitcoin ETF, or a firm adopting a new crypto, there’s a path that fits your style.

Just remember: the crypto world moves fast. Choose carefully, stay informed, and invest with a clear goal in mind.