Goldman Sachs has unearthed the stocks of 19 crypto companies that have drastically outperformed the S&P 500.
This was revealed by Forbes, citing a company memo sent to its clients yesterday.
Goldman Sachs analysts went in search of stocks of US blockchain and cryptocurrency-related, publicly traded companies that have dramatically outperformed the stock market, and put together a basket of 19 stocks with a high level of exposure to crypto assets.
These are companies with market capitalizations of more than $1 billion, and with high exposure to blockchain and cryptocurrency, and have averaged a 43% return this year, or more than three times that of the 13% return of the S&P 500.
Goldman Sachs’ analysis of crypto company stocks
The two with the highest growth are mining companies that operate industry-sized facilities, namely Las Vegas-based Marathon Digital Holdings and Colorado-based Riot Blockchain, which have grown by +218% and +151% respectively since the start of the year.
The 19 stocks identified by Goldman Sachs also include Tesla, Facebook, and most notably MicroStrategy, as well as Square.
The investment bank also mentions BNY Mellon and JPMorgan Chase, two large banks that offer services related to cryptocurrencies, as well as Mastercard, Visa and PayPal.
There is of course Coinbase, despite the fact that it was only listed a week ago, and Goldman Sachs also includes Overstock.com, IBM, Nvidia and the financial services companies InvestView, Broadridge Financial and Ideanomics.
In the note, Wedbush analyst Dan Ives said:
“The story and theme here is much larger than just investing in bitcoin and predicting its potential price path… It’s about the potential ramifications that crypto, blockchain and bitcoin could have across the corporate world for the next decade. Given the still-nascent and volatile nature around bitcoin, we believe less than 5% of public companies will head down the bitcoin investment path over the next 12 to 18 months, but that could move markedly higher as more regulation and acceptance takes hold further down the road”.
It’s unclear whether this analysis had any ulterior motive, or if it was just to highlight the best performing US crypto companies, but given that Goldman Sachs offers services related to crypto products it’s not unreasonable to think that it is looking at new products to offer its clients, perhaps based on exposure to equities in the sector.