Bitcoin strategic reserve plan triggers heated market discussion
The United States' possible plan to adopt Bitcoin as a national strategic reserve asset is sparking heated discussion in the market. According to a report by Mike Colonnesse, an analyst at H.C. Wainwright & Co., this policy could bring significant benefits to Bitcoin and its mining industry. Republican presidential candidate and former President Trump laid out his cryptocurrency policy at the Bitcoin 2024 conference, saying he would establish a government reserve of approximately $12 billion in Bitcoin and pledging to make the United States the global leader in Bitcoin mining.
According to Bernstein’s report, the Bitcoin mining industry is potentially worth $20 billion, further supporting the argument for Bitcoin’s mass adoption and global acceptance. Senator Lummis has also proposed a plan to create a strategic Bitcoin reserve, while independent candidate Robert F. Kennedy has suggested amassing 1 million Bitcoins. These policy plans have made the market more optimistic about Bitcoin’s prospects.
The three best stocks to buy
As the U.S. potentially builds a strategic Bitcoin reserve, the following three stocks are believed to benefit the most:
Coinbase Global（NASDAQ: COIN）
As one of the world's largest cryptocurrency exchanges, Coinbase stands to benefit from increased demand for Bitcoin from governments and institutions. If the U.S. government holds large reserves of Bitcoin, the need for secure and compliant trading and custody platforms will increase significantly. Coinbase has established a comprehensive infrastructure and regulatory compliance system to meet these needs.
Notably, Coinbase is expanding its services to include custody solutions for large institutional investors, which fits well with the needs of national Bitcoin reserves. Coinbase's share price is bullish overall going into 2024, and government involvement in Bitcoin will be a strong driver for its stock price. At press time, Coinbase shares were trading at $204.44, up 30.32% year-to-date despite falling more than 18.22% over the past week.
Source: Google Finance Coinbase stock price chart
MicroStrategy（NASDAQ: MSTR）
MicroStrategy is a business intelligence company and a significant institutional investor in Bitcoin. Its former CEO Michael Saylor is a well-known supporter of Bitcoin, and the company has incorporated large amounts of Bitcoin into its financial strategy. If the U.S. adopts Bitcoin as a strategic reserve asset, it would validate MicroStrategy's investment strategy, potentially boost its stock price and encourage other companies to follow suit.
Notably, MicroStrategy continues to purchase Bitcoin, strengthening its leadership position in enterprise Bitcoin adoption. The company’s stock price typically moves with the price of Bitcoin, which could soar under the proposed strategic reserve policy. MicroStrategy shares are up more than 111.34% so far in 2024 and are currently trading at $1,447.99.
Source: Google Finance MicroStrategy stock price chart
Marathon Digital Holdings（NASDAQ: MARA）
Marathon Digital is one of the largest Bitcoin mining companies in North America. Government holdings of Bitcoin as reserve assets will increase demand for newly mined Bitcoins and potentially drive up their prices. Marathon’s large-scale mining operation will benefit from the rise in the value of Bitcoin.
At the same time, Marathon continues to expand its mining capabilities and holdings. The company recently added $100 million worth of Bitcoin reserves, positioning itself to handle rising Bitcoin prices. Although Marathon's stock price is down 25.03% so far in 2024 and is currently trading at $17.19, the company has huge potential for future growth as its Bitcoin strategic reserve plan moves forward.
Source: Google Finance Marathon Digital stock price chart
Potential Impact of Bitcoin Strategic Reserve Plan
In view of the possible plan by the United States to establish a strategic reserve of Bitcoin, it is expected to completely change the financial market landscape and promote significant growth of Bitcoin-related companies. Against this backdrop, Coinbase, MicroStrategy, and Marathon Digital are the three stocks with the greatest potential to benefit and are worth keeping an eye on for investors looking to capitalize on this growing opportunity.
With the widespread adoption of Bitcoin and the active promotion of the US government, the value of Bitcoin is likely to rise further. This will not only bring direct benefits to the above three companies, but will also promote the development of the entire cryptocurrency market. Investors should pay close attention to the policy trends of the U.S. government in order to invest at the appropriate time.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
