This October has been good for cryptocurrencies so far. As I write this (Oct. 8), Bitcoin (CRYPTO: BTC) has gained 7% since the start of the month and 10% in the past 30 days. One driver was the government shutdown, which increased the appeal of alternative assets like crypto and gold that may act as safe havens.
Strong crypto performance is usually good news for cryptocurrency stocks and Bitcoin corporate treasury companies. Indeed, these two have outperformed Bitcoin in the past month.
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1. Bullish
Bullish (BLSH -9.44%) has gained almost 35% in the past 30 days, buoyed by several announcements. The institution-focused global digital asset platform launched a U.S. spot trading exchange and a crypto options platform for clients outside the U.S.
It also announced a corporate banking partnership with Deutsche Bank (NYSE: DB) that includes fiat deposits and withdrawals for clients in Hong Kong and Germany.
2. MARA Holdings
MARA Holdings (MARA -7.77%) is up over 30% in the past 30 days. It reported that September's Bitcoin production was up 4% month over month and showed it is taking a higher proportion of overall miner rewards.
MARA is a Bitcoin mining company with a twist: It reduces the cost of mining through renewable energy generation and clean energy conversion. It's also expanding into AI data centers, making it more than a one-trick Bitcoin pony.
Bitcoin corporate treasury companies can be risky
There are various ways to get exposure to Bitcoin, including buying it directly, investing in Bitcoin ETFs, and using corporate treasury companies. For some -- like the two above -- Bitcoin is a core part of their business.
For others, like Strategy (NASDAQ: MSTR), Bitcoin accumulation sits outside their original business activities. Strategy has led the way in using leverage, which can generate outsized returns. However, that also adds risk.
If you're considering investing in a Bitcoin treasury company, take a good look at the role crypto plays in their business. Consider how much Bitcoin it holds, what it paid for it, and how the business will handle any prolonged price drops.
