Marathon Vs. Silvergate: Which Cryptocurrency Stock Is A Better Buy?

Cryptocurrency, Asset, Electronic Payment, Payment

For investors seeking to benefit from the rising price of Bitcoin, cryptocurrency stocks Silvergate Capital (SI) and Marathon Digital Holdings (MARA) may be just the ticket. The two stocks have crushed the broader markets and we think have the potential to gain momentum if the bull run continues this year.

Cryptocurrencies have been on a tear since March 2020. Over the last 14 months, the prices of several digital currencies, including Bitcoin, Ethereum, and Dogecoin, have been on a stellar ascent. The total crypto market is worth more than $2 trillion today and  has attracted institutional investment, driving widespread adoption in the process.

For investors seeking to gain exposure to this highly disruptive and volatile space, buying and holding digital tokens via a crypto exchange may be a convenient way. Alternatively, investors can invest in companies that are associated with cryptocurrencies. Here, we look at two such companies that have gained popularity due to the crypto boom.

Silvergate Capital a financial institution that has partnered with crypto trading exchange houses. Marathon Digital Holdings is a bitcoin mining company.

So, let’s see which of these two names is a better stock buy and hold for long-term investors.

Silvergate Capital is up 550% since IPO

Silvergate Capital is a banking company that can be considered a digital-asset specialist. It basically facilitates retail and institutional investors access to the cryptocurrency market. The Silvergate Exchange Network, also known as SEN, allows crypto traders and investors to buy and sell digital currencies by partnering with multiple exchanges.

SEN is a global payments platform that enables the real-time transfer of U.S. dollars between the exchange and Silvergate customers. Silvergate does not have to pay its customers interest on these deposits, which will benefit its bottom-line if interest rates increase in the future.

In the first quarter, the average deposits from digital currency customers stood at $6.4 billion, up from less than $4 billion in Q4 of 2020.

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Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

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