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When examining cryptocurrency stocks, chatting with the co-portfolio manager of the long-term blockchain-focused Amplify Transformational Data Sharing ETF (BLOK) makes for good conversation.
Dan Weiskopf told me he's more optimistic about 2025 now than he was this year at the end of 2023.
Main reason? A “crazy opportunity” for BLOK investors is set to come as more cryptocurrency companies go public.
Some expect Stablecoin source circuit He could be among the next to do so. Weiskopf has his eye on it, too Shape techniques.
Weiskopf noted that while a few bitcoin miners could also go public, this is a crowded field. But BLOK may consider retaining cloud computing company CoreWeave – one of the mining giants Core Scientific's largest customer.
Speaking of Core Scientific, this stock — which is up nearly 320% year-to-date — is the #1 stock on BLOK (4.67%). Another interesting miner for Weiskopf is Hut 8 – the ETF's sixth-largest holding, at 4.16%.
“I think we've done a really good job of repositioning and recalibrating among miners in taking advantage of diversification On the AI side The Prime Minister said.
Hut 8 is weighted slightly above MicroStrategy - a stock that is scheduled to enter the Nasdaq 100 next week (I'll write more about that on Monday). BLOK started buying MSTR in August 2020 (when it was priced at $14), Weiszkopf and co-prime minister Mike Venuto male.
MSTR shares were trading at around $350 this afternoon (up over 400% year-to-date). Benchmark analysts on Monday raised their price target on the stock to $650 after MicroStrategy increased its bitcoin holdings to 439,000 BTC.
However, they added that Weiskopf and Venuto recently reduced BLOK's exposure to MSTR and CORZ as the shares rose "beyond our weighting limits." In other words, they cut back on winners in hopes of moving on to other successes.
And on that diversification point: While BLOK money managers wait for more IPOs in 2025, they started buying Japan-based Metaplanet last month.
While more companies Add BTC to their treasuries (~60 by Weiskopf count), many of which are small. He said that so-called “zombie companies” are unlikely to rebound simply because they bought crypto assets.
“They make headlines, but do they have a real strategy?” Weiskopf added about the evaluation of these BTC buyers.
He said Metaplanet, which in April She revealed her intention To emulate MicroStrategy's efforts, he is one of the people committed to purchasing BTC. The company said this week that it will issue 5 billion yen in ordinary bonds to accelerate Bitcoin purchases.
So, for those keeping an eye on crypto stocks, BLOK holdings seem worth a look. Then there are the opportunities yet to emerge during what could be a transformative year for the sector.
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