Bitcoin has produced tremendous long-term returns, but the next wave of gains may come from crypto stocks.
Crypto stocks benefit from rising Bitcoin prices but have underlying businesses that go beyond buying and holding crypto.
IREN and Coinbase have outperformed Bitcoin year-to-date and have plenty of tailwinds that support long-term growth.
Bitcoin (CRYPTO: BTC) is approaching an all-time high as investors get more enthusiastic about cryptocurrencies, but cryptos may not be the best way to play the crypto boom.
Crypto stocks have been hot lately, with many of them outpacing the S&P 500. These stocks offer exposure to the upswing in crypto prices while having business models that generate meaningful revenue growth.
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These two crypto stocks have outperformed Bitcoin year-to-date, and if the famed cryptocurrency continues to march higher, these stocks should post solid gains for patient investors.
Image source: Getty Images.
Crypto miners have been turning themselves into AI data centers that can secure big deals with tech giants like Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) and Meta Platforms(NASDAQ: META). IREN(NASDAQ: IREN) is one of the best-positioned crypto miners to capitalize on the AI boom.
Tech giants need energy and data centers to serve as the backbone for their AI projects. IREN has 810 megawatts of data center capacity and nearly 3 gigawatts of contracted, grid-connected power. Those three gigawatts can translate into billions of dollars for IREN, based on previous deals, and most of that power will be available by the end of 2027. IREN mentioned an additional multi-gigawatt development pipeline when reporting Q4 FY25 results in August.
Nebius(NASDAQ: NBIS) reached a 5-year, $17.4 billion deal with Microsoft(NASDAQ: MSFT), and it can go up to $19.4 billion in value. The deal gives Microsoft access to a 300 megawatt data center. IREN will soon have enough energy to support 10 of these deals, and the deals may get more pricey as the energy bottleneck gets tighter for companies that are investing in artificial intelligence.
IREN currently makes most of its revenue from Bitcoin mining, but it’s projecting significant growth for its cloud segment. IREN told investors in August that it expected between $200 million and $250 million in annual recurring cloud revenue by the end of the year. One month after making that announcement, IREN notified investors that it anticipates bringing in more than $500 million in annual recurring cloud revenue by the end of Q1 2026.
This projected quarter-over-quarter double suggests strong demand for IREN’s AI data centers. These deals can print more money than the company’s crypto mining operations, but Bitcoin is still a big piece of the picture. IREN mined 668 Bitcoin in August , translating to $50.8 million in hardware profits, which is good for a 66% hardware profit margin.
Buying Bitcoin has gotten easier over the years, with many brokerage firms letting you trade the asset or an ETF that is directly tied to the asset. While offering Bitcoin to customers is the new trend, Coinbase(NASDAQ: COIN) was one of the first movers in the industry. It’s the largest U.S.-based crypto exchange and holds $1.8 billion in crypto assets, as of June 30, 2025.
Coinbase doesn’t only offer crypto trading. It also lets customers stake crypto, use it for purchases, and store crypto in digital wallets. Users can also transfer crypto to their friends via fast, free global transfers.
Although Coinbase’s transaction revenue slightly dipped year-over-year, stablecoin revenue has been surging. That part of Coinbase’s business is up by 38.3% year-over-year, as the GENIUS Act set up the regulatory foundation for the wide adoption of stablecoins and other digital assets. This policy can boost the demand for crypto, which would bode well for Coinbase.
The company is positioned well for Bitcoin surges and growth from altcoins. It’s the preferred choice for institutional investors, as Coinbase is the custodian for more than 80% of U.S. Bitcoin and Ethereum ETFs. Rising demand for crypto, especially as Bitcoin approaches all-time highs, will boost the company’s transaction revenue.
Owning Coinbase stock also gives you exposure to another hot crypto stock that’s benefiting from stablecoins, Circle(NYSE: CRCL). It owns 8.5 million shares of the stock, which is upby more than 70% year-to-date and translated into solid gains for Coinbase.
IREN and Coinbase aren’t just crypto plays. IREN taps into artificial intelligence while Coinbase is revolutionizing digital finance. They have outperformed Bitcoin year-to-date, and their stock prices stand to go higher if Bitcoin continues to rally.
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Marc Guberti has positions in IREN. The Motley Fool recommends Coinbase Global and Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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