Coinbase’s Market Leadership Highlights Potential Shift in Publicly Traded Blockchain Companies Amid Crypto Sector Evolution

• Publicly traded blockchain companies account for just 5.8% of the total crypto market cap, highlighting private sector dominance.

• Coinbase leads with a $71.2 billion market cap, while NASDAQ hosts 24 blockchain firms, with mining operations being the most common.

• The trend of diversification into AI and high-performance computing among mining companies signals the evolving landscape of blockchain firms.

A recent CoinGecko report reveals publicly traded blockchain firms hold only 5.8% of the total crypto market cap, showcasing private sector strength.

Publicly Traded Blockchain Companies in Crypto

The report, released on February 4, shows only 46 notable publicly traded blockchain companies. The majority, 24 in total, are listed on NASDAQ, with Coinbase (COIN) leading by a significant margin. Coinbase, the largest US-based crypto exchange, boasts a market cap of $71.2 billion.

As the table indicates, Coinbase’s valuation is more than ten times that of the second-largest company, Galaxy Digital (GLXY), which stands at $6.68 billion. The New York Stock Exchange (NYSE) hosts only two blockchain-focused firms: Bit Mining (BTCM) and Hyperscale Data (GPUS). The latter recently rebranded from Ault Alliance (AULT) to emphasize its shift from cryptocurrency mining to providing artificial intelligence (AI) data center infrastructure. This reflects a broader industry trend of diversification.

In Canada, 47 blockchain companies are listed across various exchanges. The Toronto Stock Exchange (TSX), TSX Venture, and the Canadian Securities Exchange (CSE) are key highlights. However, many of these firms have micro-cap valuations under $10 million or are exchange-traded funds (ETFs). Galaxy Digital stands out as a significant entity listed solely on the TSX.

Meanwhile, publicly traded blockchain companies are classified into five primary sectors. Cryptocurrency mining operations are the most prevalent, accounting for 25 of the 46 companies.

Notable mining firms include Marathon Digital Holdings (MARA), which has a market cap of $6.09 billion; Riot Platforms (RIOT), which has a market cap of $4.12 billion; and Core Scientific (CORZ), with a valuation of $3.44 billion.

Diversification Strategies and Upcoming IPOs

The CoinGecko report also indicates several mining companies diversifying into high-performance computing (HPC) and AI data centers. It ascribes the shift to Bitcoin’s fourth halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC.

As part of the diversification, firms like Core Scientific are leveraging their server scaling and infrastructure maintenance expertise. This helps the firm, among others like Hut 8 Mining (HUT), TeraWulf, HIVE Digital Technologies, and CleanSpark, to explore these emerging sectors.

This data highlights the relatively small footprint of publicly traded companies within the expansive crypto market. Despite the industry’s fast-paced growth, the diversification strategies of key players suggest a calculated future.

Looking ahead, several crypto companies plan to enter public markets, potentially increasing the sector’s representation. BitGo, a leading cryptocurrency custodian managing over $100 billion in assets, is reportedly considering an IPO in the second half of 2025.

The crypto custodian’s move aligns with a broader trend of crypto firms exploring public listings amid favorable regulatory developments. Furthermore, industry observers anticipate that companies like Circle, Kraken, and Gemini may pursue IPOs in 2025 in light of the current US administration’s pro-crypto policies.

“Among the possibilities are…the re-opening of the initial public offering (IPO) window for late-stage digital asset companies like Circle and Kraken…,” Ark Invest wrote recently in a newsletter.

These developments could significantly bolster the presence of blockchain companies in public markets, offering investors more avenues to engage with the growing crypto industry.

Conclusion

The evolving landscape of blockchain firms indicates a shift towards diversification, particularly among mining companies venturing into AI and high-performance computing. With upcoming IPOs on the horizon, the representation of blockchain companies in public markets is set to increase, providing broader investment opportunities for those looking to capitalize on the thriving crypto sector.