What are DAOs and why do they matter for these stocks?

DAOs (Decentralized Autonomous Organizations) are internet-native groups where members collectively make decisions and share ownership. They represent the community-owned platforms mentioned throughout this theme. The companies in this stock group provide the essential infrastructure, services, and access points that allow DAOs to function and grow. As more people participate in these community-owned networks, these infrastructure companies stand to benefit.

What is Web3 and how does it relate to these investments?

Web3 refers to the next generation of the internet built on decentralized technologies like blockchain. Unlike today's internet (Web2) where a few large companies control most platforms, Web3 aims to give ownership and control back to users. The stocks in this theme are companies building the foundation for Web3 - providing the exchanges, security, computing power, and payment systems that make decentralized networks possible.

What are "picks and shovels" investments in the context of blockchain?

"Picks and shovels" refers to an investment strategy focused on companies that provide the essential tools and infrastructure that support an industry, rather than directly participating in it. During the gold rush, the most reliable profits often went to those selling mining equipment, not the miners themselves. Similarly, these stocks represent companies building the critical infrastructure for blockchain and Web3 - like exchanges, mining operations, and payment systems - potentially offering exposure to the sector with less risk than investing directly in cryptocurrencies.

What is digital asset mining and why are multiple mining companies included?

Digital asset mining refers to the process of using powerful computers to validate transactions and secure blockchain networks like Bitcoin. Miners are rewarded with new coins for this work. Companies like RIOT, MARA, HUT, and BTBT operate large-scale mining facilities that provide the computational power necessary for decentralized networks to function securely. Different mining companies have various strategies, geographic focuses, and operational efficiencies, which is why several are included to provide balanced exposure to this critical infrastructure segment.

How does institutional adoption affect these companies?

Institutional adoption refers to traditional financial institutions, corporations, and investment firms entering the cryptocurrency and blockchain space. This brings legitimacy, regulation, and substantial capital. For the companies in this theme, increased institutional involvement can mean higher transaction volumes on exchanges (benefiting COIN and HOOD), greater demand for mining services (helping RIOT, MARA, and others), and more widespread use of payment infrastructure (boosting SQ and PYPL). The involvement of established financial players signals market maturation and potentially drives significant growth for these infrastructure providers.

15 handpicked stocks

Community-Owned Platforms

Invest in the companies building a revolutionary internet where users own, govern, and profit from their networks. These carefully selected stocks represent the critical infrastructure powering the shift to decentralized digital economies.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17