Blockchain concept stocks: A new high ground for liquidity outside the crypto world

As the global financial regulatory environment becomes clearer, the cryptocurrency market is gradually moving from a niche circle towards the mainstream financial system. The results of the U.S. elections have had a positive impact on the cryptocurrency industry, promising to adopt more favorable regulatory policies, including the establishment of a national Bitcoin reserve and encouraging the U.S. to expand Bitcoin mining activities, which have boosted market confidence. In the coming days, the capital markets have begun to experience widespread transmission, and against this backdrop, several Blockchain concept stocks have seen an increase.

Currently, more and more listed companies have realized the enormous potential of Blockchain technology and are actively incorporating it into their strategic layout. Many Blockchain concept stock companies are experiencing strong development momentum and have gained significant attention and investment in the market. These companies are driving the digital transformation and value creation of their businesses by introducing Blockchain technology, gradually becoming important players in the industry. In the future, greater development opportunities are expected to emerge under the push of Blockchain.

In recent years, especially with the regulatory benefits brought by the launch of cryptocurrency-related ETFs in the United States, it signifies that cryptocurrencies are no longer limited to a closed digital currency market, but are deeply integrated with traditional capital markets. Data shows that the asset management scale of a certain trading platform's Bitcoin spot ETF has reached $17.243 billion, and it has almost been in a state of net inflow since the beginning of the year. Meanwhile, another platform's Bitcoin spot ETF has an asset management scale of $13.659 billion, demonstrating investors' interest and confidence in this emerging asset class.

The total market capitalization of the current cryptocurrency market is approximately $3.2 trillion, which can be divided into the following three main categories based on asset class:

1. Bitcoin ( BTC ) Bitcoin, as the core asset of the entire crypto market, currently has a market capitalization of approximately $1.9 trillion, accounting for more than 50% of the total cryptocurrency market value. It is not only recognized as a store of value by both traditional finance and the native crypto world but also, due to its anti-inflation characteristics and limited supply, has become the preferred choice for institutional investors, being hailed as "digital gold". Bitcoin plays a key role as a pivotal hub in the crypto market, stabilizing the market while also providing an interconnected bridge between traditional assets and native on-chain assets.

2. Native on-chain assets include public chain tokens ( such as Ethereum ETH ), decentralized finance ( DeFi ) related tokens, as well as functional tokens in on-chain applications, etc. This field is diverse, highly volatile, and its market performance is driven by technological updates and user demand. Currently, the market capitalization is approximately $1.4 trillion, which is significantly lower than the market's high growth expectations.

3. The combination of traditional assets and crypto technology This field encompasses on-chain real-world asset ( RWA ) tokenization, blockchain-based securitized assets, and other emerging projects. Currently, its market value is only a few hundred billion dollars, but with the popularization of blockchain technology and the deep integration of traditional finance, this field is rapidly developing. By tokenizing traditional assets and enhancing liquidity, it is also one of the main driving forces for the growth of the future crypto market. This part will promote the transformation of traditional finance towards a more efficient and transparent digital direction, unlocking tremendous market potential.

Why are we so optimistic about the growth potential of traditional assets?

In the past six months, the asset attributes of Bitcoin have undergone a new evolution, and the dominant forces in the capital market have completed the transition from old powers to new funds.

In 2024, the position of cryptocurrency in the traditional financial sector will be further consolidated. Major financial giants have launched exchange-traded products for Bitcoin and Ethereum, providing both institutional and retail investors with more convenient channels for digital asset investment, which further confirms the connection with traditional securities.

At the same time, the tokenization trend of real-world assets ( RWA ) is also accelerating, further enhancing the liquidity and coverage of financial markets. For example, Germany's state-owned development bank KfW issued two digital bonds totaling 150 million euros in 2024 using blockchain technology. These bonds are settled using distributed ledger technology ( DLT ). The French computer equipment manufacturer Metavisio issued corporate bonds, utilizing tokenization to provide capital support for its new manufacturing facility in India. This also demonstrates that traditional financial institutions are leveraging blockchain technology to optimize operational efficiency, and many financial institutions have incorporated crypto technology into their business models.

Nowadays, a capital circulation model centered around Bitcoin as the core asset, utilizing ETFs and the stock market as the main channels for capital inflow, and leveraging listed companies as the carrier platform, is continuously absorbing USD liquidity and fully unfolding.

The combination of traditional finance and Blockchain will give rise to more investment opportunities than native on-chain assets. Behind this trend is the market's emphasis on stability and practical application scenarios. The traditional financial market has a solid infrastructure and mature market mechanisms, and when combined with Blockchain technology, it will release greater potential.

From these perspectives, it can be seen that the future development of the crypto market is not just an increment of digital currencies themselves, but the huge potential of integration with traditional finance. From regulatory dividends to changes in market structure, Blockchain concept stocks are at a critical juncture of this major trend, becoming the focus of global investors.

Blockchain Concept Stock Classification

1. Asset-Driven Concept

Regarding the concept of asset allocation in blockchain stocks, the company's strategy is to use Bitcoin as the main reserve asset. This strategy was first implemented by a certain company in 2020 and quickly attracted market attention. This year, other companies such as the Japanese investment company MetaPlanet and the Hong Kong-listed company Boyaa Interactive have also joined in, with the acquisition of Bitcoin continuously increasing. MetaPlanet announced the introduction of the key performance indicator "Bitcoin Yield" ( BTC Yield ), which had a BTC Yield of 41.7% in the third quarter, and as of October 25, (, it reached as high as 116.4% in the fourth quarter.

Specifically, these companies' strategy is to introduce the "Bitcoin Yield" key performance indicator to provide investors with a new perspective for assessing the company's value and investment decisions. This indicator is based on the diluted number of outstanding shares, calculating the amount of Bitcoin held per share without considering Bitcoin price fluctuations, aiming to help investors better understand the company's behavior of purchasing Bitcoin through the issuance of additional common stock or convertible instruments, focusing on measuring the balance between the growth of Bitcoin holdings and equity dilution. As of now, a certain company's Bitcoin investment yield has reached 41.8%, indicating that while the company continuously increases its holdings, it has successfully avoided excessive dilution of shareholder interests.

However, despite achieving significant results in Bitcoin investment, the company's debt structure has still drawn market attention. It has been reported that a certain company currently has an outstanding debt total of $4.25 billion. During this period, the company has raised funds through multiple rounds of issuing convertible bonds, some of which also come with interest payments. Market analysts are concerned that if the price of Bitcoin drops sharply, the company may need to sell some of its Bitcoins to repay its debts. However, there are also views that, due to the company's reliance on its stable traditional software business and low interest rate environment, its operating cash flow is sufficient to cover debt interest, so even if the Bitcoin price crashes, it is unlikely to force the company to sell its Bitcoin assets. In addition, the company's stock market capitalization currently stands at $43 billion, and the proportion of debt in its capital structure is relatively small, which further reduces liquidation risk.

Despite many investors being optimistic about the company's firm Bitcoin investment strategy, believing it will bring considerable returns to shareholders, there are also some investors who express concerns about its high leverage and potential market risks. Due to the extreme volatility of the crypto world, any adverse market changes could significantly impact the asset value of such companies, and their stock prices are trading at a notable premium relative to their net asset value, raising questions about the sustainability of this status. If there is a correction in the stock price, it could affect the company's financing ability, which in turn may impact its future Bitcoin purchasing plans.

)# 1、Microstrategy###MSTR(

The company was founded in 1989, initially focusing on the fields of business intelligence and enterprise solutions. However, starting in 2020, the company transformed into the world's first publicly listed company to use Bitcoin as a reserve asset, a strategy that fundamentally changed its business model and market position. The founder played a key role in driving this transition, evolving from an early Bitcoin skeptic to a staunch supporter of cryptocurrency.

Since 2020, the company has continuously purchased Bitcoin through its own funds and bond financing. As of now, the company has accumulated about 279,420 Bitcoins, with a current market value of nearly 23 billion USD, accounting for about 1% of the total Bitcoin supply. The most recent purchase occurred between October 31 and November 10, 2023, where 27,200 Bitcoins were acquired at an average price of 74,463 USD. The average holding price of these Bitcoins is 39,266 USD, while the current Bitcoin price has reached approximately 90,000 USD, resulting in a paper profit of nearly 2.5 times.

Despite facing a paper loss of about $1 billion on its Bitcoin investments during the bear market of 2022, the company has never sold its Bitcoin but instead chose to increase its holdings. Since 2023, the strong rise of Bitcoin has significantly boosted the company's stock price, with an investment return rate of 26.4% year-to-date and a cumulative investment return rate exceeding 100%. The current business model can be seen as a "BTC-based circular leverage model," raising funds through bond issuance to purchase Bitcoin. Although this model brings high returns, it also carries certain risks, especially during significant fluctuations in Bitcoin prices. According to analysis, the company would only face liquidation risk if Bitcoin prices fell below $15,000, and with current Bitcoin prices nearing $90,000, this risk is minimal. Additionally, the company has a low leverage ratio and strong demand in the bond market, which further enhances its financial stability.

For investors, the company can be seen as a leveraged investment tool in the Bitcoin market. With the expectation of a steady rise in Bitcoin prices, the company's stock has significant potential. However, caution is needed regarding the medium to long-term risks that may arise from debt expansion. In the next 1 to 2 years, the company's investment value will still be worth paying attention to, especially for investors who are optimistic about the prospects of the Bitcoin market, as this is a high-risk, high-reward asset.

)# 2、Semler Scientific###SMLR(

Semler Scientific is a company focused on medical technology, and one of its innovative strategies is to use Bitcoin as a primary reserve asset. In November 2024, the company disclosed that it had recently purchased 47 coins, increasing its total holdings to 1,058 coins, with a total investment amounting to approximately $71 million. Part of the funds for these acquisitions came from operating cash flow, indicating that the company is attempting to strengthen its asset structure through its Bitcoin holdings, becoming a representative of innovation in asset management.

However, the company's core business still focuses on its QuantaFlo device, which is primarily used for diagnosing cardiovascular diseases. However, the company's Bitcoin strategy is not just a financial reserve; in the third quarter of 2024, the company achieved an unrealized gain of $1.1 million from its Bitcoin holdings. Despite a 17% year-on-year decline in revenue for that quarter, it still provided the company with a financial hedge amid economic fluctuations.

Despite the current market capitalization of only $345 million, which is far lower than other similar companies, its strategy of adopting Bitcoin as a reserve asset has led investors to view it as a "mini" asset-driven company.

)# 3. Boya Interactive

Boyar Interactive is a Hong Kong-listed company primarily engaged in games, ranking among the top developers and operators in China's board game industry. Since the second half of last year, it has begun to test the waters in the crypto market, aiming for a comprehensive transformation into a Web3 public company. The company has purchased large amounts of cryptocurrencies such as Bitcoin and Ethereum, as well as invested in multiple Web3 ecological projects. Additionally, it signed a subscription agreement with Waterdrip Capital ### under the Pacific Waterdrip Digital Asset Fund ( for strategic development in the fields of Web3 game development and the Bitcoin ecosystem.