More Bitcoin Stocks?
Both Kraken and Gemini are working with advisors on IPOs. Insiders are eager for liquidity. Outsiders might be cautious about offering it. Sure business is booming. But there’s a self-defeating aspect of mainstream bitcoin acceptance for such platforms. They aren’t really needed anymore. You can trade crypto on Robinhood (HOOD) and other regular brokerages. The crypto exchanges don’t need new capital; they just want to replace theirs with yours. The door they opened is your entry but their exit.
Caveat
If crypto markets roar this year, I could be wrong. Strong bitcoin could lift all BTC-related equities.
Conclusion
Kraken and Gemini don’t look like good equity opportunities to me, but they’re both good for sign up bonuses — $20 from Kraken and $75 for Gemini if you buy $100 of BTC on both. These sign up bonuses aren’t unrelated to their IPO plans. A lot of their customer growth is paid for with such payments. If they’re handing out money I’ll
- take it but also
- note that is what some other customers are there for.
TL; DR
Skip the upcoming bitcoin IPO boom.
