As Bitcoin and Ethereum dominate the headlines, it's the companies building crypto infrastructure that are arguably more likely to leave an indelible mark on the future of finance — and your portfolio. Enter the era of blockchain giants, with three companies leading the way: NU Holdings Ltd. (NU), Coinbase Global (COIN), and Core Scientific Inc. (CORZ) — the six companies at the forefront of this transformative technology.
These industry giants are not just riding the crypto fever wave: they are building the infrastructure and mining new Bitcoins necessary for decentralized finance to function. From crypto exchanges that process billions of dollars in daily trading volume to companies developing blockchain products for enterprises, these companies are the largest publicly traded companies in the U.S. or Canada, either directly or through American Depositary Receipts (ADRs), when ranked by mid-2024 revenue.
Key Takeaways
- Blockchain is the core database technology behind Bitcoin and other cryptocurrencies.
- Blockchain is now a major industry that has spawned numerous multi-billion dollar companies.
- One of the most successful and well-known blockchain companies is Coinbase, an online cryptocurrency broker with annual revenue of $3.11 billion in fiscal year 2023. However, the company has been in the news not only for its operations but also for its disputes with the U.S. Securities and Exchange Commission (SEC).
- Affiliated companies include companies involved in mining hardware, investments, and trading platform provision.
What is Blockchain?
Blockchain is a distributed database shared among nodes in a computer network. It is best known for its role in maintaining a secure, decentralized record of transactions in cryptocurrencies such as Bitcoin. It does this by ensuring the authenticity and security of data records. Companies in this industry include financial technology (fintech) companies, cryptocurrency miners, and manufacturers of blockchain technology.
#1 New Holdings Co., Ltd. (NU)
- Revenue (last 12 months): $9.146 billion
- Revenue (2023): $8,029 million
- Net income (last 12 months): $1.268 billion
- Market capitalization (market cap): $64.11 billion
- 1-year price/earnings ratio: 72.8% (as of July 15, 2024)
- Exchange: NYSE
NU specializes in providing digital banking services, and its subsidiary, Nubank, has partnered with Fireblocks, a US-based enterprise platform that manages digital asset operations and develops blockchain products.
Nu has made impressive progress in growing its customer base and revenue per customer, and is the fourth-largest bank in Brazil by number of members. It is also growing in Mexico and Colombia. Despite operating in a region often considered high risk, Nu Holdings has remained profitable and has experienced impressive growth so far. Shortly after the end of the first quarter of 2024, Nu Holdings announced that it had gained 100 million customers in Brazil, Mexico and Colombia.
#2 Coinbase Global (COIN)
- Revenue (last 12 months): $3.973 billion
- Revenue (2023): $3.108 billion
- Net profit (TTM): $1,349,000
- Market cap: $53.54 billion
- Price return over the past 12 months: 153.7% (as of July 15, 2024)
- Exchange: Nasdaq
Coinbase is the largest cryptocurrency exchange in the United States by trading volume. Coinbase offers a variety of products to both retail and institutional investors, including Coinbase Pro, Coinbase Wallet, and USD Coin. Founded in 2012 by Brian Armstrong, Coinbase is headquartered in San Francisco, California.
The approval of a Bitcoin exchange-traded fund (ETF) in the United States has boosted Coinbase's stock price, as the company plays a key role as the ETF's custodian and prime broker. Coinbase is embroiled in a legal battle with the SEC, which has accused the company of operating as an unregistered securities exchange. This ongoing legal issue poses a risk to the company's future revenue and regulatory standing.
#3 Core Scientific (CORZ)
- Revenue (last 12 months): $561.04 million
- Revenue (2023): $502.4 million
- Net profit (TTM): -$35.41 million
- Market cap: $1.8 billion
- Price return over the past 12 months: 153.7% (as of July 15, 2024)
- Exchange: Nasdaq
Core Scientific is a cryptocurrency miner that also offers hosting services. While it mines Bitcoin on behalf of the company, its hosting division focuses on providing infrastructure support and services for third-party clients. Founded in 2017 by Michael Jeffrey Levitt and Darin Feinstein, CORZ is based in Dover, Delaware.
#4 MicroStrategy, Inc. (MSTR)
- Revenue (last 12 months): $489.59 million
- Revenue (2023): $496.26 million
- Net profit (TTM): -$85.19 million
- Market cap: $24.77 billion
- 1-year price-to-earnings ratio: 237.8% (as of July 15, 2024)
- Exchange: Nasdaq
MicroStrategy is a well-known enterprise analytics and mobility software company. The company will soon release its decentralized identity product, MicroStrategy Orange. As of the end of Q1 2024, MSTR held 214,400 BTC. In July 2024, it announced a 10-for-1 stock split.
#5 Marathon Digital Holdings (MARA)
- Revenue (last 12 months): $501.57 million
- Revenue (2023): $387.51 million
- Net income (TTM): $605.58 million
- Market cap: $5.67 billion
- Historical 1-year price return: 23.19% (as of July 15, 2024)
- Exchange: Nasdaq
Marathon is a leading cryptocurrency mining company founded in 2010 and based in Las Vegas, Nevada. As of mid-2024, it holds 18,536 BTC.
#6 Riot Platforms (RIOT)
- Revenue (last 12 months): $286.74 million
- Revenue (2023): $280.68 million
- Net income (last 12 months): $217.99 million
- Market cap: $2.83 billion
- Price return over the past 12 months: -44.5% (as of July 15, 2024)
- Exchange: Nasdaq
Riot Platforms, Inc. is a Bitcoin mining company that offers specialized cryptocurrency mining computers. It has investments in companies such as Verady, Coinsquare, and Tess. The company operates in three segments: Bitcoin mining, data center hosting, and engineering. Founded in 2000, RIOT is headquartered in Castle Rock, Colorado.
How do blockchain companies make money?
Blockchain itself is essentially a technology and does not directly generate revenue, but many companies are finding ways to make money through transaction fees, block rewards, network services, initial coin offerings, token sales, consulting and development services, enterprise products and subscriptions, and staking.
Which is the most powerful blockchain?
“Strong” can refer to standard metrics such as transaction speed or throughput, network security, decentralization, developer activity, adaptability, etc. Blockchains that are considered strong include Bitcoin, Ethereum, Solana, Cardano, Polkadot, and Cosmos.
Which blockchain is growing the fastest?
Blockchain technology is rapidly evolving and expanding, with many platforms seeing significant increases in user adoption, trading volumes, and developer activity. Fast-growing blockchains include Solana, Polygon, Avalanche, and Cardano. According to the company, the number of developers working in Solana's ecosystem will increase from 2,500 to 3,000 in 2023, and its native token, SOL, saw a 920% increase from January to December 2023.
Conclusion
Nubank, Coinbase, Core Scientific, MicroStrategy, Marathon Digital Holdings and Riot Platforms are among the highest revenue earners in the blockchain space. Nubank is expanding its cryptocurrency offerings in Brazil and working with Fireblocks to bolster security. Coinbase operates a major bitcoin trading platform (which the SEC alleges is also an unlicensed securities exchange) and offers digital payment products for businesses.
Core Scientific offers digital mining and hosting services, as well as blockchain-related services. MicroStrategy is developing a decentralized identity system using the Bitcoin blockchain. Marathon Digital Holdings and Riot Platforms are significant cryptocurrency mining companies that are also investing in blockchain infrastructure. Following the SEC's approval of a spot cryptocurrency ETF in 2024, the sector is experiencing significant growth.
