Tesla (TSLA)

Bitcoin and Tesla logo seen on paper document. Concept for investment in cryptocurrency.
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This is the most obvious one. When the electric vehicle giant revealed that it had stockpiled more than $1.5 billion worth of Bitcoin in February, the news sent the cryptocurrency soaring.

In July, CEO Elon Musk tweeted that the company owned “close to” 42,000 bitcoins.

It’s certainly a sizable stake, but nothing too significant relative to Tesla’s size.

Thanks to a more than 10-fold increase in its stock price since the beginning of 2020, Tesla’s market cap has surpassed the $1 trillion mark.

As you might expect from that kind of rally, Tesla’s business is growing rapidly.

In Q3, revenue totaled 13.76 billion, representing a 57% increase year over year. Meanwhile, net income clocked in at $1.62 billion, up 389% from the year-ago period.

Looking ahead, the EV manufacturer expects to achieve “50% average annual growth in vehicle deliveries” over a multi-year time horizon.

To be sure, Tesla currently trades at over $1,100 per share. But you can get a piece of the company using a stock trading app that allows you to buy fractions of shares with as much money as you are willing to spend.

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Square (SQ)

Square, Inc. is technology company that develops solutions for accepting and processing electronic payments.
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Square co-founder and CEO Jack Dorsey has long been a proponent of Bitcoin.

In fact, his hopes for the cryptocurrency extend beyond its financial capabilities.

“My hope is that it creates world peace or helps create world peace,” Dorsey said during a “B World” webinar in July.

Square owns 8,027 bitcoins, worth approximately $531 million today.

Shares of the digital payments technologist have traded sideways for most of 2021, but the business itself has shown plenty of improvement.

In Q3, gross profit grew 43% year over year to $1.13 billion as revenue increased 27% to $3.84 billion.

During the quarter, Square also announced two fresh Bitcoin initiatives: a consumer Bitcoin hardware wallet and a Bitcoin mining system.

“Both are focused on helping Bitcoin reach a mainstream audience while at the same time, strengthening the network and ecosystem,” Dorsey said in the conference call with analysts.

Marathon Digital Holdings (MARA)

Mining golden bitcoins
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With a market cap of roughly $7.5 billion, Marathon Digital is substantially smaller than Square and Tesla. But Bitcoin investors shouldn’t ignore it.

Marathon is a cryptocurrency miner. Year to date, its mining fleet has produced approximately 2,516 self-mined bitcoins.

While some Bitcoin miners might be tempted to sell their coins amid this crypto rally, Marathon simply hoards them — an act known as holding on for dear life, or HODL, to crypto enthusiasts.

In fact, the company hasn’t sold any bitcoins since October 2020. It even purchased 4,812.66 bitcoins in January 2021 at an average price of $31,168 per coin.

As a result of continued accumulation, Marathon has about 7,453 bitcoins today, a stake worth over $490 million.

Unsurprisingly, the stock has done extremely well amid the current crypto boom. Year to date, Marathon shares are up a staggering 591%.

If you’re on the fence about jumping in at the current level, some apps might give you a free share of a Bitcoin-related stock just for signing up.

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Bitcoin or Banksy?

side view of young caucasian woman standing in an art gallery in front of colorful framed paintings displayed on a white wall
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You can always just buy Bitcoin directly.

Today, many exchanges charge up to 4% in commission fees just to buy and sell crypto. But some investing apps charge 0% and allow you to start with as little as $1.

Of course, if you want to invest in something that has little correlation with the ups and downs of the crypto market, consider a real, but overlooked asset like fine art.

Contemporary artwork has already outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich.

But with a new investing platform, you can invest in iconic artworks, too, just like Jeff Bezos and Bill Gates do.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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