As cryptocurrency continues to gain mainstream attention, many investors are looking for ways to get exposure to the market without directly owning cryptocurrencies that can be highly volatile or lack a regulatory framework. Investing in companies that are involved in the cryptocurrency market is an easy way to give your portfolio this exposure and capitalize on the profits this burgeoning industry can produce.

Two stocks that are well suited for this investment strategy are Riot Blockchain (RIOT) and Coinbase Global (COIN -0.73%)

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The Bitcoin mining champ

Riot Blockchain is a Bitcoin miner that offers investors a way to gain exposure to the world's most valuable cryptocurrency. In recent years, few rivals have been able to keep pace with Riot's production and ability to cut costs and make money. 

Since the beginning of 2022, the company has mined the second most Bitcoins in the industry with more than 8,200. This production is likely a reflection of its massive facilities in west Texas that continue to boost Riot's mining capabilities.

By successfully mining Bitcoin, Riot is then able to capture profits by selling the coins immediately at market prices or add then to its reserves and wait for Bitcoin's price to increase. Inevitably, Riot's stock is highly correlated to Bitcoin's price. 

As for expenses, Riot employs a unique business model to ensure energy costs (the primary expense of Bitcoin mining companies) are kept in check. Thanks to the unique energy grid in Texas, Riot is actually able to sell energy that would have been dedicated to mining Bitcoin back to the electricity market. This proves to be especially strategic when the cost to mine a Bitcoin is greater than the potential profit, a scenario that is common in bear markets. As a result of this business model, Riot was able to generate more than $27 million in power credits through voluntary power curtailments in 2022.

Expanding on those low costs, the company spent around $17,900 on average per Bitcoin mined, the second lowest of all mining companies. Riot has a debt-free balance sheet and plans to expand its operations in west Texas by the end of the year, which could further reward investors.

An international cryptocurrency leader

There are few companies on the stock market today that allow investors to gain exposure to the entire crypto industry the way Coinbase Global does. Unlike Riot, whose business model revolves around Bitcoin, Coinbase is a cryptocurrency exchange that relies on the crypto market as a whole. 

Although the shares remain well off their all-time highs, there is promise for Coinbase as its new revenue-producing strategies are finally bearing fruit.

While the company wasn't able to turn a profit this most recent quarter, it's as close as it has been in more than a year. This is directly related to the company's goal of shifting away from its dependence on transaction fees for profits.

To create revenue in even the toughest of markets, Coinbase has developed a suite of products called subscriptions and services. These products primarily consist of blockchain rewards, custodial fees, and interest income. Subscriptions and services now represent 49% of total revenue.

In addition to a more comprehensive offering of products, Coinbase plans on expanding its reach globally. Although the company already had a presence internationally, there is a renewed effort to prioritize overseas expansion. Progress is already being made with Coinbase recently launching its own International Exchange last March.

Thanks to this adaptability and agility, Coinbase has navigated multiple crypto bear markets in the past and looks as though it has made it through this one as well. 

With the prospects of a rally in the cryptocurrency market looking more likely, Coinbase could provide investors with an easy way to gain exposure to an industry that is budding with potential.