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Top 6 Blockchain Companies
While Bitcoin and Ethereum dominate the headlines, it is the companies building crypto infrastructure that are perhaps most poised to make an indelible mark on the future of finance and your wallet. Enter the era of blockchain giants, with NU Holdings Ltd. (NEW), Coinbase Global (CURRENCY) and Core Scientific Inc. (CORZ), leading a group of six companies at the forefront of this transformative technology.
These industry giants aren’t just riding the wave of cryptocurrency hype; they’re building the infrastructure decentralized finance needs to function and mining new bitcoin. From cryptocurrency exchanges processing billions in daily volume to companies developing blockchain products for businesses, these companies are the largest publicly traded companies in the U.S. or Canada, either directly or through American Depositary Receipts (ADRs), as ranked by revenue as of mid-2024.
Key points
- Blockchain is the database technology that underpins Bitcoin and cryptocurrencies.
- Blockchain is now a major industry that has spawned several billion-dollar companies.
- One of the most successful and recognized blockchain companies is Coinbase, an online cryptocurrency broker with annual revenues of $3.11 billion in the financial year ending 2023. However, it has found itself in the spotlight as much for its battles with the U.S. Securities and Exchange Commission (SEC) as for its operations.
- Related companies include those that mine hardware, invest, or provide trading platforms.
What is Blockchain?
Blockchain are distributed databases shared between nodes in computer networks. They are best known for their role in cryptocurrencies like bitcoin, to maintain a secure, decentralized ledger of transactions. They do this by ensuring the authenticity and security of a data record. Companies in the industry include financial technology (fintech) companies, cryptocurrency miners, and blockchain technology manufacturers.
#1 Nu Holdings Ltd (NU)
- Revenue (TTM): $9.146 billion
- Turnover (2023): 8.029 billion
- Net income (TTM): $1.268 billion
- Market Capitalization (Market Cap): 64.11 billion dollars
- 1-year trailing price yield: 72.8% (as of July 15, 2024)
- Stock Exchange: NYSE
NU specializes in providing digital banking services. One of its holdings, Nubank, has partnered with Fireblocks, a US-based enterprise platform that manages digital asset transactions and develops blockchain products.
Nu has made significant progress in expanding its customer base and revenue per customer and is the fourth largest bank in Brazil in terms of members. It is also growing in Mexico and Colombia. Despite operating in regions often perceived as risky, Nu Holdings has maintained profitability and has had impressive growth so far. Shortly after the end of the first quarter of 2024, Nu Holdings announced that it had reached 100 million customers in Brazil, Mexico and Colombia.
#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 yield: 153.7% (as of July 15, 2024)
- Stock Exchange: Nasdaq
Coinbase is the largest cryptocurrency exchange in the United States by trading volume. Coinbase offers a variety of products for both retail and institutional investors, including Coinbase Pro, Coinbase Wallet, and USD Coin. Founded by Brian Armstrong in 2012, Coinbase is headquartered in San Francisco, California.
The approval of spot bitcoin exchange-traded funds (ETFs) in the United States has boosted Coinbase shares as it plays a crucial role as their custodian and prime broker. Coinbase is embroiled in a legal battle with the SEC, which has accused the company of operating as an unregistered exchange. This ongoing legal issue poses risks to its future earnings and regulatory standing.
#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 yield: 153.7% (as of July 15, 2024)
- Stock Exchange: Nasdaq
Core Scientific is a crypto miner that also provides hosting services. It mines bitcoin on behalf of the company itself, while its hosting segment focuses on providing infrastructure support and services for third-party clients. Founded by Michael Jeffrey Levitt and Darin Feinstein in 2017, CORZ is headquartered in Dover, Delaware.
#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
- 1-year trailing price yield: 237.8% (as of July 15, 2024)
- Stock Exchange: Nasdaq
MicroStrategy is a well-known enterprise analytics and mobility software company. The company is expected to launch MicroStrategy Orange, a decentralized identity product, soon. At the end of Q1 2024, MSTR held 214,400 BTC. In July 2024, it announced a 10-for-1 stock split.
#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
- 1-year trailing price yield: 23.19% (as of July 15, 2024)
- Stock Exchange: Nasdaq
Marathon is a leading crypto mining company. Founded in 2010, the company is headquartered in Las Vegas, Nevada. As of mid-2024, it held 18,536 BTC.
#6 Riot, Inc. (RIOT) Platforms
- Revenue (TTM): $286.74 million
- Revenue (2023): $280.68 million
- Net Income (TTM): $217.99 million
- Market cap: $2.83 billion
- 1-year trailing price return: -44.5% (as of July 15, 2024)
- Stock Exchange: Nasdaq
Riot Platforms, Inc. is a bitcoin mining company that provides specialized computers for cryptocurrency mining. It maintains investments in companies such as Verady, Coinsquare, and Tess. The company operates in three segments: bitcoin mining, data center hosting, and engineering. Founded in 2000, RIOT is headquartered in Castle Rock, Colorado.
How do blockchain companies make money?
Blockchains themselves are essentially technologies, not entities that generate revenue directly. However, many companies have found ways to make money through transaction fees, block rewards, network services, Initial Coin Offeringstoken sales, consulting and development services, enterprise products and subscriptions, and staking.
What is the most powerful blockchain?
“Powerful” could refer to standard metrics such as transaction speed and throughput, network security, decentralization, developer activity, and adaptability. Some of the blockchains considered powerful include Bitcoin, Ethereum, Solana, Cardano, Polkadot, and Cosmos.
What is the fastest growing blockchain?
Blockchain technology is rapidly evolving and expanding, with many platforms experiencing significant growth in user adoption, transaction volume, and developer activity. Some of the fastest-growing blockchains include SolanaPolygon, Avalanche, and Cardano. In 2023, Solana went from 2,500 to 3,000 developers working on its ecosystem, and its native token SOL saw a 920% gain from January to December 2023, according to the company.
The bottom line
Nubank, Coinbase, Core Scientific, MicroStrategy, Marathon Digital Holdings, and Riot Platforms have the highest revenues in the blockchain space. Nubank is expanding its cryptocurrency offerings in Brazil, partnering with Fireblocks to improve security. Coinbase operates a leading bitcoin trading platform (the SEC says it is also an unregistered exchange) and offers digital payment products for businesses.
Core Scientific provides digital mining and hosting services, along with other blockchain-related offerings. MicroStrategy is developing decentralized identity systems using the Bitcoin blockchain. Marathon Digital Holdings and Riot Platforms are major cryptocurrency mining companies that are also investing in blockchain infrastructure. The sector is seeing significant growth in the wake of the SEC’s 2024 approval of spot cryptocurrency ETFs.