These 2 Cryptocurrency Stocks Are Soaring With Bitcoin’s Record Rally

Bitcoin's blistering ascent to unprecedented heights is creating massive tailwinds for these two crypto-correlated stocks—and they're just getting started.

The Crypto Infrastructure Play

While Bitcoin grabs headlines with its parabolic moves, the real money might be in the picks-and-shovels companies building the digital gold rush. These stocks aren't just riding the wave—they're providing the entire ecosystem that makes crypto's growth possible.

Mining Operations Cashing In

As Bitcoin's price surges, mining profitability explodes exponentially. These companies aren't just hodling—they're generating real revenue while traditional finance scrambles to catch up. The math becomes brutally simple: higher Bitcoin prices equal massive mining margins.

Financial institutions still trying to value crypto stocks using traditional metrics—watching from the sidelines while the future of finance gets built without them. These two players aren't waiting for permission to print money.

Alphabet

(GOOGL -2.07%) (GOOG -1.99%) is a titan in the technology sector. Not only is it a powerhouse in online search, processing 5 trillion queries annually, it also boasts over 2 billion users across its various platforms, including Android, YouTube, Gmail, and the Play Store.

The search division is a cash cow, generating $104.9 billion in the first half of this year alone while growing 11%. While there have been some concerns about ChatGPT and other large language models eating into Google's search business, the company is adapting with its own models. AI Overviews powered by Gemini are already driving an extra 10% in global queries for relevant searches.

Google Cloud is enjoying robust customer demand, bolstered by Alphabet's AI-related services. Deals exceeding $250 million have doubled year over year, and the influx of new Google Cloud Platform customers has surged by almost 28% sequentially.

With over $100 billion in cash reserves, Alphabet is positioned to return capital and invest in future growth, making it an attractive technology stock in today's pricey market.

Visa

(V -1.00%) dominates the payments landscape, thanks to its massive payment network. In 2023, the company processed over $15 trillion in transactions. This is 67% higher thanand 8 times larger than, showing Visa's significant market share.

Visa's strength stems from its robust network effects, which result from the payment network it has spent decades building. Its vast network includes hundreds of merchants and banking partners, serving millions of customers worldwide. As more users or merchants join the Visa network, the stronger it becomes.

The company doesn't take on credit risk by holding on to credit card loans or any other loans. Instead, Visa facilitates payments on its network and generates a steady stream of revenue from transaction processing fees. This helps reduce risks during economic downturns, when consumers may struggle to pay off credit cards or other forms of debt.

Its low operational expenses and competitive moat help Visa generate stellar profit margins and produce solid returns for investors, making it another excellent stock for investors to consider scooping up today.

Berkshire Hathaway

(BRK.A -1.36%) (BRK.B -1.42%) is best known for its CEO, legendary investor Warren Buffett. Over several decades, Buffett and his longtime business partner, the late Charlie Munger, built Berkshire Hathaway into a massive conglomerate with businesses spanning multiple industries.

The company's wholly owned subsidiaries encompass a diverse range of industries, including energy, railroads, consumer goods, building supplies, and others. This diversified strategy gives investors exposure to businesses across the economy.

Currently flush with over $334 billion in cash and short-term investments, Berkshire is positioned to capitalize on opportunities that may arise amid market volatility.

Investors may be concerned about Buffett's retirement at the end of this year. I think any concerns may be overblown, considering Berkshire's diversity. Additionally, Buffett and Munger hand-picked investment lieutenants, Todd Combs and Ted Weschler, who have been instrumental in some of Berkshire's most successful investments over the last decade.

For investors seeking a diversified powerhouse with a strong cash position, Berkshire Hathaway stands out as a compelling investment option.