What encryption stocks are worth looking forward to in 2025?

Author: Ben Strack, Blockworks; Translation: Wu Zhu, Golden Finance

When researching cryptocurrency stocks, it's a good conversation to chat with the co-portfolio manager of Amplify Transformational Data Sharing ETF (BLOK), which has long been focused on blockchain.

Dan Weiskopf told me that he is now more optimistic about 2025 than he was at the end of 2023 about this year.

What are the main reasons? As more pure-play crypto companies go public, there will be "crazy opportunities" for investors.

Some people expect that stablecoin issuer Circle may be the next company to go public.

Weiskopf pointed out that although there may be several Bitcoin miners going public, it is a crowded field. However, BLOK will consider holding the cloud computing company CoreWeave, one of the largest customers of mining giant Core Scientific.

Speaking of Core Scientific, the stock - up about 320% this year - is the largest holding of BLOK (4.67%). Another miner of interest to Weiskopf is Hut 8 - the sixth largest holding of the ETF, with a stake of 4.16%.

"I think we have done a very good job in repositioning and readjusting the miners, capturing the diversified opportunities in artificial intelligence," said Mike Venuto.

Hut 8's weight is slightly higher than MicroStrategy - the stock will enter the Nasdaq 100 Index next week (I will provide more details on this on Monday). Weiskopf and co-PM Mike Venuto pointed out that BLOK began buying MSTR in August 2020 (at a price of $14 at the time).

The MSTR stock price is trading at around $350 (up over 400% year to date). After MicroStrategy increased its Bitcoin holdings to 439,000 BTC, the benchmark analyst raised the stock's target price to $650 on Monday.

However, Weiskopf and Venuto have recently reduced their exposure to MSTR and CORZ in BLOK as these stocks 'rose above our weight limit,' they added. In other words, they are cutting back on the holdings of winners in the hope of achieving other successes.

As BLOK fund managers wait for more IPOs in 2025, they started buying Metaplanet in Japan last month.

Although more and more companies are adding BTC to their treasuries (about 60 according to Weiskopf's statistics), many of these companies are small in size. He said that so-called 'zombie companies' are unlikely to bounce back just because they bought cryptocurrency assets.

"They're making headlines, but do they have a real strategy?" Weiskopf added that he is evaluating these BTC buyers.

He believes that Metaplanet is a company dedicated to purchasing these BTCs, which announced its intention to emulate MicroStrategy's efforts in April. The company stated this week that it will issue 5 billion yen in ordinary bonds to accelerate Bitcoin purchases.

Therefore, for those who monitor cryptocurrency stocks, holding BLOK seems worth a look. In addition, there are still opportunities that have not yet emerged in this field, which may become a transformative year.