Amid soaring investor enthusiasm for cryptocurrencies, Bitcoin is once again approaching its all-time high. However, directly holding cryptocurrencies might not be the best way to participate in this wave of excitement. In contrast, some cryptocurrency-related stocks have not only outperformed the S&P 500 index but also provide investors with an effective path to participate in the appreciation of crypto assets through their business models supported by actual revenue, while demonstrating stronger business resilience. Among them, IREN and Coinbase have already outperformed Bitcoin itself in terms of stock price performance this year. If the cryptocurrency market continues to strengthen, they are poised to deliver steady returns for patient investors.
IREN has cleverly transformed its identity from a cryptocurrency miner to an artificial intelligence data center operator, thereby enabling it to secure significant partnerships with tech giants like Alphabet and Meta Platforms. Faced with the massive energy and computing power demands of AI projects, IREN’s core advantages lie in its 810 megawatts of data center capacity and nearly 3 gigawatts of contracted grid power. Referencing similar deals, such as the $17.4 to $19.4 billion, five-year, 300-megawatt data center agreement between Nebius and Microsoft, IREN’s power resources are sufficient to support a deal ten times that size. As energy bottlenecks in the AI field become increasingly prominent, the value of such collaborations is expected to continue rising. Although Bitcoin mining currently remains IREN’s primary revenue source, its cloud business is experiencing explosive growth. The company expects its annual recurring cloud revenue to reach $200 to $250 million by the end of this year and further forecasts that this figure will exceed $500 million by the first quarter of 2026, indicating strong market demand for its AI data center services. Meanwhile, the Bitcoin mining business continues to contribute substantial profits; for example, in August, it mined 668 Bitcoins, achieving $50.8 million in hardware profit with a 66% profit margin.
On the other end of the financial transformation, Coinbase, as a leading US cryptocurrency exchange, continues to benefit from the deepening development of the industry. While investors can now conveniently trade Bitcoin or related ETFs through numerous brokers, Coinbase has established a central role in the industry through its first-mover advantage and comprehensive service capabilities. Its business scope extends far beyond trading, also encompassing cryptocurrency staking, payment applications, digital wallet custody, and fast, free global transfer services. Although trading revenue has seen slight fluctuations year-over-year, its stablecoin business revenue surged by 38.3%. This growth is attributed to the regulatory pathway paved for stablecoins and other digital assets by the *GENIUS Act*, hinting at broader adoption prospects. Furthermore, Coinbase’s role as custodian for over 80% of US Bitcoin and Ethereum ETFs makes it the preferred channel for institutional fund inflows. As Bitcoin prices approach all-time highs and market trading activity increases, this will directly boost the company’s trading revenue. It is worth noting that holding Coinbase stock also gives investors indirect exposure to another hot sector – stablecoins – as it holds 8.5 million shares of Circle stock, which has risen over 70% year-to-date, bringing substantial investment gains to Coinbase.
In summary, IREN and Coinbase are not merely simple cryptocurrency concept stocks. IREN has successfully seized the opportunity presented by AI infrastructure development, while Coinbase continues to lead innovation in digital financial services. Their year-to-date performance has already surpassed that of Bitcoin itself. If the cryptocurrency market, particularly Bitcoin, can sustain its upward momentum, these two companies’ stock prices are poised for even greater potential upside.
