3 Surprising Non-Crypto Stocks to Buy Before the Next Crypto Bull Run Explodes

Optimism has returned to the cryptocurrency market, making crypto investors look forward to the next crypto bull run. That’s partly because the Securities and Exchange Commission’s (SEC) long-awaited spot Bitcoin (BTC-USD) ETF approval has finally been confirmed. In the four days following the approval, cumulative volume for the 11 spot Bitcoin ETFs surpassed $11.1 billion.

This, combined with the upcoming Bitcoin halving event – ​​a cyclical process that halves the BTC rewards distributed to crypto miners and has historically signaled a crypto bull run – has led to predictions that a new all-time high on the horizon is.

Geoff Kendrick, Standard Chartered’s head of digital assets, has suggested that the SEC’s mock Bitcoin ETF approval will see BTC reach a value of nearly $200,000 by the end of 2025. Such a seismic estimate would require Bitcoin’s market cap should climb to $2.6 trillion. This represents an influx that will cause non-native cryptocurrency stocks to rise as a result.

These stocks can offer greater comfort to investors looking to add crypto exposure to their portfolios without the risk. With these stocks, investors won’t have to rely on cryptocurrency exchanges, counterparty risk, or unfamiliar operating processes.

Micro Strategy (MSTR)

Founded in 1989 as a business intelligence software company, MicroStrategy (NASDAQ:MSTR) evolved to become a form of Bitcoin proxy for Wall Street investors.

Led by co-founder Michael Sailor, MicroStrategy owns 189,150 BTC as of December 2023 and this investment strategy has seen MSTR grow by over 90% over the past year.

“The reason we decided to buy Bitcoin is because Bitcoin represents a form of digital gold,” Saylor explained when he initially announced the company’s crypto-focused strategy. “It’s harder than gold. It’s smarter, it’s stronger, it’s faster than gold.”

The vast majority of MicroStrategy’s market cap is Bitcoin. Therefore, the software firm is an excellent option for investors to gain exposure to cryptocurrency markets without going through the rigmarole of navigating the crypto landscape and using cryptocurrency exchanges.

For investors, this can be a major benefit of MSTR. Confidence in crypto took a significant hit during the high-profile collapse of the FTX exchange. Reports of wallets being targeted by cybercriminals may lead investors to embrace MicroStrategy’s secure access point.

Additionally, MicroStrategy’s fundamentals look promising. The firm’s revenue for the third quarter of 2023 was $129.5 million, representing an increase of 3% year-over-year. Meanwhile, MicroStrategy’s consolidated statement of operations was $45 million, equivalent to a 16% year-over-year increase.

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) needs little introduction after an astonishing 2023 performance. The semiconductor giant has been supported by the generative artificial intelligence (AI) boom. It has seen nearly 200% growth in the past year to reach a market capitalization of over $1.5 trillion.

The market position of Nvidia has been strengthened by the firm’s status as a market leader in the production of graphics processing units (GPUs).

This status has helped the company create the GPUs that are set to support the widespread adoption of generative AI software by enterprises in the future. However, these processors are also likely to become essential in cryptocurrency mining and production.

On an operational level, Nvidia is making good use of its newfound status as a generative AI leader. The company’s return on equity stands at 57%, which comfortably beats the industry average of 15%.

This helps clarify Nvidia’s five-year net revenue growth of 28%. Moreover, it provides the semiconductor leaders with a strong platform to continue to innovate ahead of its industry competitors.

Block (SQ)

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Block (NYSE:SQ) has evolved to add high levels of exposure to cryptocurrencies in recent years.

Best known as a payment provider, Block’s CashApp offers users a convenient way to buy, sell and transfer crypto. Co-founder Jack Dorsey is an avid cryptocurrency enthusiast. Investors will likely see Block’s relationship with assets like Bitcoin strengthen in the future.

According to Block’s Q3 2023 earnings, the firm’s total net income reached $5.62 billion in the quarter, representing a 24% year-over-year increase. Most importantly, Bitcoin revenue accounts for 43% of net revenue.

With the company’s profit increasing 21% year-over-year to $1.9 billion and its flagship product, CashApp showing growth of 27% and profit of $984 million, Block represents a strong stock that likely has a lot of upside in ‘ will see a cryptocurrency bull market.

At the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.