Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
You can access both of our platforms from a single Saxo account.
Updating our Crypto & Blockchain basket
Peter Garnry
Chief Investment Strategist
Summary: Three companies have been added to our Crypto & Blockchain equity theme basket extending the basket to 26 companies covering the industry across many different activities. We have added Bakkt Holdings, Stronghold Digital Mining, and CoinShares International, which together with the other companies in the basket now represent $143bn in market value. Our Crypto & Blockchain basket remains the best performing basket this year up 117%.
One of our smallest equity baskets has been our Crypto & Blockchain basket but as companies within the industry have IPO’ed we have added those in bulk with the last update back in May. Last Friday we added three new companies to our basket; Bakkt Holdings, Stronghold Digital Mining, and Coinshares international extending the basket size to 26 companies. The basket now represents $143.2bn in market value across different segments of the industry such as exchange services, asset management, banking, mining, and blockchain software.
| Name | Segment | Market Cap (USD mn.) | Sales growth (%) | P/B | Diff to PT (%) | 5yr return |
| Coinbase Global Inc | Crypto exchange | 69,815 | 139.3 | 65.0 | 6.9 | NA |
| Signature Bank/New York NY | Bank | 18,809 | 9.7 | 2.5 | 13.4 | 174.6 |
| Bakkt Holdings Inc (*) | Digital assets platform | 9,325 | NA | 1.1 | NA | NA |
| Galaxy Digital Holdings Ltd | Crypto services | 8,513 | NA | 5.9 | 6.8 | 1,640.8 |
| MicroStrategy Inc | Investment firm | 7,584 | 5.1 | 16.5 | 18.7 | 289.6 |
| Marathon Digital Holdings Inc | Crypto mining | 5,531 | 2,739.7 | 9.5 | 12.6 | 77.0 |
| Silvergate Capital Corp | Bank | 5,048 | 61.3 | 4.7 | -11.1 | NA |
| Riot Blockchain Inc | Crypto mining | 2,695 | 798.5 | 3.8 | 88.0 | 1,140.8 |
| Voyager Digital Ltd | Crypto broker | 2,337 | 15,123.5 | 21.0 | 52.0 | NA |
| Hut 8 Mining Corp | Crypto mining | 2,292 | 33.4 | 7.1 | 4.2 | 557.8 |
| Monex Group Inc | Financial institution | 1,698 | 75.3 | 1.9 | 14.1 | 262.1 |
| Canaan Inc | Infrastructure | 1,536 | 22.1 | 79.2 | NA | NA |
| Hive Blockchain Technologies Ltd | Crypto mining | 1,455 | 265.0 | 7.3 | NA | 4,570.0 |
| Stronghold Digital Mining Inc (*) | Crypto mining | 1,283 | NA | NA | NA | NA |
| Northern Data AG | Infrastructure | 1,261 | 253.7 | 7.0 | 100.0 | NA |
| Bitfarms Ltd/Canada | Crypto mining | 1,002 | 7.0 | 31.9 | 45.2 | NA |
| Argo Blockchain PLC | Crypto mining | 834 | 120.0 | 16.3 | 87.8 | NA |
| Bit Digital Inc | Crypto mining | 649 | NA | 6.1 | 18.6 | NA |
| Coinshares International Ltd (*) | Digital asset management | 564 | NA | 3.2 | 10.4 | NA |
| Bitcoin Group SE | Crypto broker | 290 | 138.7 | 3.1 | NA | 871.6 |
| Future FinTech Group Inc | Blockchain e-commerce | 149 | 146.1 | 1.8 | NA | -65.4 |
| Digihost Technology Inc | Crypto mining | 145 | NA | 6.3 | NA | NA |
| DMG Blockchain Solutions Inc | Investment firm | 133 | 2.7 | 1.6 | 102.0 | NA |
| Taal Distributed Information Technologies Inc | Blockchain platform | 115 | NA | 3.1 | 94.0 | NA |
| Quickbit EU AB | Crypto payment services | 63 | -44.3 | 2.1 | NA | NA |
| Safello Group AB | Crypto broker | 25 | NA | 3.3 | NA | NA |
| Aggregate / median | 143,150 | 97.7 | 5.9 | 18.6 | 423.7 |
* Added to theme basket on 29 October 2021
** Infrastructure segment means physical computing applications for crypto mining
What are the three new companies doing in the industry?
Bakkt is a digital platform for consumers, businesses, and financial institutions that want to engage in digital assets whether it is buying crypto currencies such as Bitcoin, or pay for goods and services in crypto currency, or send money to friends and family. The company also offers monthly futures and options contracts on Bitcoin, and custody with International Exchange (its second largest shareholder owning 9.4%). The company recently announced a partnership with Mastercard and Fiserv causing interest and its share prices to increase 280% in a few days.
Stronghold Digital Mining is a Bitcoin miner that market itself as an environmentally conscious miner as its operations are powered through the reclamation of coal refuse sites across Pennsylvania. Many climate activists would likely oppose the notion that coal refuse is outright an environmental benefit compared to run mining activities on solar, hydro, or wind power.
Coinshares International is a digital asset management firm that launched the world’s first regulated Bitcoin investment fund in 2014 and later in 2015 offering it on a regulated exchange. The company offers exchange traded products (ETPs) on crypto, active investment strategies in crypto for professional investors, advisory services and various index strategies.
Driven by strong price gains in crypto currencies this year our basket is up 116.9% year-to-date delivering the best performance of all our equity theme baskets.
The next evaluation and potential updating of our basket will take place with our annual review process of all our equity baskets in January. If you want to say informed about the industry our crypto analyst Mads Eberhardt writes a weekly crypto analysis highlighting and analysing the key developments in the industry.
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...