2023’s Top 4 Most Profitable Crypto-Linked Stocks: Are You Holding?

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The year 2023 has been a landmark period for crypto-related equities. While Bitcoin surged over 150%, certain publicly traded companies closely tied to the digital asset ecosystem delivered even stronger returns — with some gaining more than 300%. Among the top performers are Marathon Digital, Coinbase, MicroStrategy, and Grayscale Bitcoin Trust (GBTC), each riding a wave of regulatory clarity, macroeconomic shifts, and growing institutional interest.

These stocks aren’t just benefiting from rising crypto prices — they’re also capitalizing on structural advantages, diversified revenue models, and strategic positioning ahead of pivotal events like the upcoming Bitcoin halving and potential approval of a spot Bitcoin ETF. Let’s explore how these four companies transformed challenges into explosive growth.

Marathon Digital: From Crisis to Expansion

In 2022, Marathon Digital faced near-collapse. Plummeting Bitcoin prices, power outages at its Montana facility, and exposure to the failed mining firm Compute North left it with nearly $400 million in quarterly losses and minimal revenue. The high-cost nature of Bitcoin mining — especially energy-intensive operations — made survival uncertain.

👉 Discover how top crypto stocks turned around in 2023

But under CEO Fred Thiel’s leadership, Marathon restructured without accumulating long-term debt, relying instead on equity sales and convertible notes. The result? A dramatic turnaround in 2023.

In Q3 alone, Marathon reported a $64.1 million net profit** and **$97.8 million in revenue, a massive leap from the prior year. The company is now aggressively expanding, recently acquiring two fully owned mining facilities in Texas and Nebraska for $178.6 million. This move increased its total mining capacity by 56%, bringing it to 910 megawatts.

Thiel emphasizes vertical integration as a core strategy: controlling operations from energy sourcing to hardware deployment allows Marathon to eliminate third-party margins and optimize efficiency. Beyond traditional mining, the company is exploring innovative revenue streams — such as converting methane emissions into usable power — aiming to diversify so that Bitcoin mining contributes only 50% of revenue by 2028.

This forward-thinking approach positions Marathon not just as a crypto bet, but as a next-generation energy-tech hybrid.

Coinbase: Building a Resilient Crypto Ecosystem

Coinbase has emerged as the best-performing U.S.-listed crypto stock in 2023, surging over 450% year-to-date. As the only major publicly traded cryptocurrency exchange in the U.S., it benefited from increased trust amid regulatory scrutiny on global rivals like Binance.

According to research firm Kaiko, Coinbase gained market share during international trading hours — a sign of expanding global relevance beyond its domestic base.

More importantly, Coinbase has successfully diversified its income. In Q3:

Even more telling: non-trading revenues have soared. With rising interest rates, Coinbase earned $212 million in interest and stablecoin yield (primarily from USDC reserves) — more than double the previous quarter.

Today, less than half of Coinbase’s net revenue comes from trading activity, down from 96% at IPO in 2021. CEO Brian Armstrong highlights this shift: “We’ve made a deliberate effort to diversify. Now we have income streams that thrive in both high- and low-rate environments — making our business more predictable.”

Regulatory headwinds that weakened competitors have ironically strengthened Coinbase’s position as a compliant, transparent gateway to crypto for mainstream investors.

Grayscale Bitcoin Trust (GBTC): Closing the Discount Gap

Grayscale Bitcoin Trust (GBTC) returned over 330% in 2023, rebounding from deep discounts during the 2022 bear market. Launched in 2015, GBTC was the first publicly available vehicle for passive Bitcoin investment in the U.S., though it traded over-the-counter as a closed-end fund.

During the downturn, GBTC traded at a near 50% discount to its net asset value (NAV), meaning investors could buy $1 worth of Bitcoin for just $0.50 — an anomaly caused by limited liquidity and redemption restrictions.

By December 2023, that gap had narrowed to just 5.6%, the tightest spread since early 2021. With approximately $26.6 billion worth of Bitcoin** in reserves and a market cap of **$24.7 billion, GBTC is poised for further revaluation.

Why the shift? Growing confidence that the SEC will approve its conversion into a spot Bitcoin ETF in 2024. Such approval would allow shares to trade on major exchanges like NYSE or Nasdaq, improving liquidity and aligning price with NAV.

Michael Sonnenshein, Grayscale’s CEO, noted on CNBC: “Our legal victory energized investor sentiment. When we enter the new year, I know the investment community is watching closely.” Approval could open the floodgates to advisory firms managing $30 trillion in U.S. assets, vastly expanding GBTC’s investor base.

MicroStrategy: The Corporate Bitcoin Strategist

MicroStrategy has become synonymous with corporate Bitcoin adoption. Originally a business intelligence software company founded in 1989, its stock rose 360% in 2023, reaching an $8.3 billion market cap.

Its transformation began in 2020 under CEO Michael Saylor (now Executive Chairman), who pivoted the company into a Bitcoin-focused treasury strategy. As of late November, MicroStrategy held 174,530 BTC, valued at $7.4 billion. By late December, it added another **14,620 BTC** for $615.7 million — bringing total holdings to 189,150 BTC.

👉 See how institutional Bitcoin adoption is reshaping markets

This aggressive accumulation reflects unwavering conviction in Bitcoin as a long-term store of value. BTIG analyst Mark Palmer raised his price target from $560 to $690, citing improving sentiment and the upcoming halving.

Current CEO Phong Le stated that Bitcoin investment has elevated the company’s profile: “We tapped into broader enthusiasm in the crypto market… There were unexpected benefits to our brand and growth.”

With over 90% of its balance sheet in Bitcoin, MicroStrategy serves as a leveraged proxy for BTC exposure — amplifying gains during bull runs while facing amplified risks in downturns.

Frequently Asked Questions (FAQ)

Q: Why did crypto-linked stocks outperform Bitcoin in 2023?
A: These companies benefited from operational turnarounds, revenue diversification, and investor appetite for regulated exposure to crypto. Their equities offer leverage to Bitcoin’s price while providing additional catalysts like ETF approvals and cost optimizations.

Q: Is GBTC a good investment if a spot Bitcoin ETF is approved?
A: Once converted, GBTC could see tighter price-to-NAV alignment and inflows from institutional investors. However, competition from new ETF issuers may pressure fees and market share.

Q: How does Marathon Digital manage energy costs in mining?
A: Through vertical integration and innovations like methane flaring projects, Marathon reduces reliance on grid power and creates alternative revenue from waste energy sources.

Q: Can Coinbase sustain growth without relying on trading volume?
A: Yes — its expanding interest income, staking services, and Web3 initiatives reduce dependence on volatile trading fees, creating a more resilient business model.

Q: What risk does MicroStrategy face with such heavy Bitcoin exposure?
A: It remains highly sensitive to BTC price swings. A prolonged bear market could impact liquidity and investor confidence, though the company maintains no debt and strong cash reserves.

Q: When is the next Bitcoin halving expected?
A: Estimated for April 2024, the halving will cut block rewards from 6.25 to 3.125 BTC — historically preceding bull markets due to reduced supply inflation.

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As we look toward 2024, these four companies exemplify how innovation, strategic foresight, and regulatory navigation can turn volatility into opportunity. Whether through infrastructure (Marathon), access (Coinbase), investment vehicles (GBTC), or corporate strategy (MicroStrategy), they represent key entry points into the evolving digital asset economy — making them essential considerations for forward-looking investors.