- Bitcoin proxy stocks offer indirect exposure to Bitcoin through public companies.
- These stocks trade on major exchanges and OTC markets.
- Investors do not need a crypto wallet to buy them.
- U.S. and international options are available to investors.
Exposure through stocks is gaining traction when investing in Bitcoin.
Investors often see it as more straightforward to access cryptocurrency since stocks are usually more familiar and regulated. As a result, demand is rising.
For example, questions about accessing proxy stocks like Metaplanet are emerging in the Bitcoin investment space.
Shinpei Okuno, Head of IR and Capital Strategy at Metaplanet Inc. (3350.T / MTPLF), noted that many U.S.-based investors have approached him asking how to purchase Metaplanet shares.
The company also launched a U.S. subsidiary to expand its Bitcoin holdings and raise funds from American markets, marking a clear move toward international growth.
While Japanese investors easily access U.S. stocks, Okuno highlighted that buying individual Japanese equities remains relatively uncommon in the U.S. market.
This guide explains Bitcoin-related stocks with examples, how to buy them, and what risks to consider. It covers both U.S. and international options.
What Are Bitcoin Proxy Stocks?
Bitcoin proxy stocks are shares of publicly traded companies whose financial performance is tied to the price of Bitcoin. Investors use them indirectly to gain exposure to Bitcoin without owning or selling the cryptocurrency themselves.
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These stocks are available on major stock exchanges and offer a more regulated and familiar investment channel, especially for those hesitant to deal with digital assets themselves.
Different categories of Bitcoin proxy stocks are based on how each company is involved in the ecosystem. The main categories include:
- Bitcoin mining companies: Generate revenue directly from mining BTC.
Examples: MARA Holdings (MARA), Riot Platforms (RIOT)
- Companies holding BTC on balance sheets: Hold Bitcoin as a treasury asset or part of their core strategy.
Examples: Strategy (MSTR), previously Strategy, Metaplanet (3350.T)
- Financial services and asset managers: Offer institutional crypto services like asset management, custody, and investment banking
Examples: Galaxy Digital (GLXY.TO), NYDIG
- International tech/financial pivoters: Firms shifting business strategy toward Bitcoin or adopting BTC as a corporate-investment focus
Examples: Metaplanet, Block Inc. (SQ)
Comparing Bitcoin Proxy Stocks: Exposure, Correlation, and Investment Focus
The table below summarizes each stock’s type of exposure, role in the Bitcoin ecosystem, ticker information, and how closely it tends to move with Bitcoin’s price. This comparison helps investors identify the most relevant proxy stocks for their investment strategy.
| Company | Type | BTC Exposure | BTC Correlation | Ticker |
| Strategy (MSTR) | Business intelligence firm | Corporate BTC holdings (~2.7% supply) | Very high | NASDAQ: MSTR |
| MARA Holdings | Bitcoin mining company | Mines and holds BTC; holds Bitcoin as part of reserves | Very high | NASDAQ: MARA |
| Galaxy Digital | Crypto asset manager | Trading, funds, custody | High | TSX: GLXY |
| Metaplanet | Japanese investment firm | BTC treasury asset | High | TSE: 3350.T |
How To Buy Bitcoin-Proxy Stocks
Investors can gain exposure to Bitcoin without owning the cryptocurrency directly by purchasing stocks of companies tied to Bitcoin. Here’s how both U.S. and international investors can get started.
For U.S. Investors
Using most standard brokerage platforms, you can easily buy U.S.-listed Bitcoin-related stocks like Strategy (MSTR) and MARA Holdings (MARA). Stocks like Galaxy Digital (GLXY) and Metaplanet (3350.T), however, may require access to international markets.
Steps:
- Choose a brokerage: Sign up with a U.S. broker that offers access to domestic and/or international markets (e.g., Robinhood, Fidelity, Charles Schwab for U.S. stocks; Interactive Brokers for international).
- Fund your account: Link your bank account and deposit funds.
- Search the ticker: Enter the stock ticker (e.g., MSTR, MARA) into the brokerage search bar.
- Place an order: Choose the number of shares and set a market or limit order.
- Track performance: Monitor your investment through the brokerage’s portfolio tools.
To Buy GLXY or 3350.T:
- Use a broker like Interactive Brokers (IBKR) that provides access to international exchanges (TSX for GLXY, TSE for 3350.T).
- You may need to enable international trading permissions.
For International Investors
Investors outside the U.S. can access many of the same stocks using global trading platforms.
Steps
- Choose a global broker: Sign up with a platform like eToro or Interactive Brokers (IBKR).
- Complete KYC requirements: Provide identity verification and banking details for know-your-customer (KYC) compliance.
- Fund your account: Deposit funds in your local or supported currency.
- Search and select tickers: Look up stocks like MSTR, MARA (U.S.), GLXY (Canada), or 3350.T (Japan).
- Enable access to specific markets: Some brokers require permission or added functionality to trade on TSX or TSE.
- Buy and monitor: Execute your trade and track performance via your platform’s dashboard.
Please note that buying Metaplanet (3350.T) requires a broker with access to the Tokyo Stock Exchange or a Japanese brokerage account.
Metaplanet Inc. is listed exclusively on the TSE, and as of now, there is no over-the-counter (OTC) or American Depositary Receipt (ADR) version available for trading in U.S. markets. Therefore, investors outside Japan must use a broker that provides access to Japanese equities.
Buying Galaxy Digital (GLXY) via OTC in the US
While Galaxy Digital Holdings Ltd. (GLXY) is primarily listed on the Toronto Stock Exchange (TSX) in Canada, U.S. investors can gain exposure through over-the-counter (OTC) markets under the ticker BRPHF.
So BRPHF is the U.S. OTC version of Galaxy Digital, the same underlying company as GLXY on the Toronto Stock Exchange.
What Is an OTC Stock?
OTC stocks are traded directly between parties via a dealer network rather than a centralized exchange like the NYSE or NASDAQ. These stocks often represent foreign companies or smaller firms not listed on U.S. exchanges.
Key Points for U.S. Investors:
- Ticker: BRPHF
- Market: OTC, accessible via most full-service U.S. brokerages (e.g., Fidelity, TD Ameritrade, Charles Schwab)
- Price correlation: BRPHF tends to mirror the Canadian listing but may reflect slightly different pricing due to currency conversion (USD vs. CAD) and lower liquidity.
- Lower trading volume: OTC shares can have wider bid-ask spreads and less liquidity, which may impact order execution, especially for larger trades.
- No fractional shares: Unlike some exchange-listed stocks, fractional share buying is often not available for OTC listings.
How to Buy BRPHF
- Use a brokerage that supports OTC trading (not available on platforms like Robinhood).
- Search for BRPHF and verify that the company name is Galaxy Digital Holdings Ltd.
- Set a limit order to avoid slippage due to potential low liquidity.
- Monitor performance — note that BRPHF follows GLXY’s fundamentals, news, and crypto market trends
Bitcoin Proxy Stocks: Risks Investors Should Know Beyond Just Price Volatility
While Bitcoin proxy stocks offer exposure to the cryptocurrency market, they also carry risks beyond Bitcoin’s price. Investors should understand the key factors that may impact performance.
- Volatility: These stocks often mirror or amplify Bitcoin’s price movements, which can be sharp and unpredictable.
- Business model risk: Bitcoin miners specifically face challenges from fluctuating energy and hardware costs, efficiency issues, and evolving regulations that can affect their profits
- Company-specific risk: This includes governance issues or bold strategies that add financial risk. For example, Strategy (MSTR) uses debt financing, often through convertible notes, to buy more Bitcoin. If Bitcoin’s price falls, the company could face pressure to manage its debt and maintain financial stability.
- Regulatory scrutiny: Crypto-focused firms face shifting rules affecting their business, operations, and profits. Staying compliant is a constant challenge.
Tax Implications
Investing in Bitcoin proxy stocks has tax implications that differ from owning cryptocurrency directly. The rules also vary depending on the investor’s location.
Tax Considerations for US Investors
- Capital gains apply: When investors sell Bitcoin proxy stocks like Strategy or MARA Holdings, they must pay capital gains tax. If they hold the stock for over a year, the gain qualifies for a lower long-term rate. If they sell in less than a year, it counts as short-term and is taxed like regular income.
- No crypto reporting required: These investments are stocks, not cryptocurrencies. Investors do not need to report wallet addresses or blockchain activity. Brokerage firms handle the trades.
- Taxable accounts must report gains: These are stocks, so there is no need to report crypto wallet activity. However, investors must report any profits if they hold these stocks in a taxable brokerage account. This rule applies to both U.S. and foreign-listed stocks.
Tax Considerations for Non-US Investors
Tax rules vary according to jurisdiction and regulation. Investors must follow the tax laws in their own country to stay compliant.
Investors should consider the following:
- Differences by country and jurisdiction: Some countries do not tax capital gains, while others fully tax foreign stock profits.
For example, some jurisdictions (e.g., Singapore, Hong Kong, Switzerland) generally do not tax capital gains for individuals, but professional investors or those deemed to be trading may face taxation.
Others (e.g., Canada, Australia, Germany) tax profits from foreign stocks with specific variations, including Bitcoin proxy stocks (e.g., companies like Strategy or crypto ETFs).
- Tax compliance and specific reporting: Some may apply foreign dividend taxes or require additional reporting.
For example, if a Bitcoin proxy stock pays dividends, some countries apply withholding taxes on that income.
The rate depends on the tax treaty between the investor’s government and the stock’s home country, such as the United States or Japan.
- No wallet needed: Investors outside the US do not need to manage a crypto wallet to invest in Bitcoin stocks. However, they might still need to report profits, dividends, or holdings according to local tax rules.
Constant education is always the best approach, as well as the advice and assessment of a tax advisor.
Additional Factors To Consider
While Bitcoin proxy stocks offer general, regulated access to crypto exposure, several practical factors can affect how they perform and who they suit. Investors should also consider the following before buying.
- Liquidity: Some Bitcoin proxy stocks trade with low volume, especially those listed OTC or on smaller exchanges. This can lead to wider spreads, slower trade execution, and price slippage. Checking trading volume helps assess liquidity risk.
- Currency risk: International stocks like Japan’s Metaplanet carry foreign exchange risk. U.S. investors may see gains reduced if the dollar strengthens against the yen, even when the stock and Bitcoin prices increase.
- Mixed exposure: These companies should not be approached as Bitcoin trackers. Their stock prices reflect Bitcoin and their business operations, potentially the whole ecosystem. This may reduce volatility, but the stock may not always move with Bitcoin.
- Listing potential: Some OTC or foreign stocks may list on major exchanges. A successful uplisting can improve liquidity, raise visibility, and attract more investors. But it comes with requirements and no guarantees.
- Investor fit: These stocks are a good option for those who want Bitcoin exposure through traditional brokerage accounts. They suit investors who prefer more regulated markets and do not want to use crypto exchanges and their own wallets. Knowing their particularities is essential.
Conclusion
Bitcoin proxy stocks let investors access the crypto market without holding digital assets.
Companies like Strategy, MARA Holdings, Galaxy Digital, and Metaplanet offer different types of exposure, including holding BTC on their balance sheets, mining, or managing crypto assets.
These stocks trade on regulated markets and fit investors who prefer stock portfolios to wallets and exchanges.
Still, they carry risks. Volatility, business model shifts, regulatory changes, and tax obligations depend on the company and jurisdiction.
Keeping informed, knowing the stock’s role, jurisdiction, and reporting requirements helps investors stay informed and protected. It is always a good practice to get expert advice.
FAQs
Do I need a crypto wallet to invest in Bitcoin stocks?
No, users do not need a crypto wallet. Investors buy these stocks through traditional brokers.
Can Bitcoin proxy stocks be held in retirement accounts?
Yes. Depending on the brokerage and specific regulation, investors can hold U.S.-listed stocks like MSTR and MARA in retirement accounts such as IRAs or 401(k)s.
Do Bitcoin proxy stocks track Bitcoin’s price exactly?
No. These stocks often move with Bitcoin, but company decisions, revenue sources, and strategy, including ecosystem changes, can cause price movement differences.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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