Better Cryptocurrency Stock: Coinbase vs. Marathon Digital – Motley Fool

Better Cryptocurrency Stock: Coinbase vs. Marathon Digital – Motley Fool

Some investors might be intrigued by cryptocurrencies but reluctant to buy any of the volatile coins. For those investors, publicly traded companies that provide some exposure to cryptocurrencies might seem like better investments.

Coinbase (NASDAQ:COIN) and Marathon Digital (NASDAQ:MARA) are two such stocks. Coinbase owns the largest cryptocurrency exchange in the United States with 8.8 million monthly transacting users (MTUs), while Marathon Digital mines Bitcoin (CRYPTO:BTC) with over 22,000 miners.

Coinbase went public via a direct listing this April with a reference price of $250, but regulatory concerns recently caused its price to dip below that level. Meanwhile, Marathon’s stock skyrocketed roughly 1,650% higher over the past 12 months as it transitioned from a patent-holding business to a bitcoin-mining company. So which of these volatile cryptocurrency stocks is a better investment right now?

Golden Bitcoin tokens on a shiny circuit board.

Image source: Getty Images.

Coinbase is still growing like a weed

Coinbase’s revenue jumped 144% to $1.28 billion in 2020, then surged 969% year-over-year to $4.03 billion in the first half of 2021. It turned profitable in 2020 with a net profit of $322 million, and it stayed in the black with a