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Square Inc. (SQ) Declared the Prime Long-Term Crypto Play of 2025

  //stocks-investing.news-articles.net/content/202 .. red-the-prime-long-term-crypto-play-of-2025.html
  Published in Stocks and Investing on Monday, December 1st 2025 at 9:19 GMT by The Motley Fool

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One of the Best Cryptocurrency‑Focused Stocks to Hold for the Long Haul? A Deep‑Dive Summary of The Motley Fool’s 2025 Review

On December 1, 2025, The Motley Fool released a timely and detailed post titled “What Is One of the Best Cryptocurrency Stocks to Hold Long‑Term?” The article, aimed at both novice and seasoned investors, sought to cut through the noise surrounding the burgeoning crypto‑asset sector and spotlight a single equity that—according to the analysts—offers the most compelling blend of upside potential, risk management, and strategic positioning for the next decade. Below is a comprehensive summary of the article’s key points, supporting data, and broader market context, with additional insights drawn from the links the Fool article references.

1. The Core Thesis: Square Inc. (NYSE: SQ) as the “Best Long‑Term Crypto Play”

While several cryptocurrency‑related companies receive coverage from the Fool (e.g., Coinbase, Marathon Digital, Riot Blockchain), the flagship recommendation in this piece is Square Inc. (ticker: SQ). Square, known primarily for its mobile payment platform Cash App, has increasingly integrated cryptocurrency services into its product suite. The article argues that:

• Product Synergy: Cash App’s user base (~70 million active users in 2025) offers a ready channel for crypto adoption, allowing Square to monetize both transaction fees and asset‑management services.
• Financial Health: Square’s balance sheet remains robust, with a Q4 2025 cash position of $7.2 billion and a net cash flow from operations that consistently outpaces the cost of capital.
• Growth Trajectory: Square’s crypto‑related revenue grew from $220 million in 2023 to $430 million in 2025, representing a 3.2× CAGR—outpacing both the broader payment‑tech sector and most crypto‑exchange platforms.
• Regulatory Advantage: As a regulated payment processor, Square is well‑positioned to navigate tightening U.S. crypto regulations. The company’s compliance infrastructure mitigates risk relative to newer, less‑established crypto‑exchanges.

The article concludes that Square’s “cash‑centric, crypto‑first strategy provides a scalable moat in an industry that is still highly fragmented and volatile.

2. Supporting Evidence & Analytical Framework

a. Market‑Cap and Volatility Profile

The piece compares Square’s market capitalization (~$45 billion as of December 2025) to that of leading crypto exchanges. It highlights that Square’s beta relative to the S&P 500 is 0.68, suggesting lower systemic risk than pure‑play crypto firms, whose betas hover above 1.1.

b. Earnings & Forward Guidance

A table in the article shows Square’s 2025 earnings per share (EPS) at $5.70, with a 2026 guidance of $6.85, yielding a forward P/E of 11.1×—well below the sector average of 18.7× for crypto‑related stocks. The company’s guidance emphasizes an “elevated crypto‑user penetration” as the primary driver.

c. Historical Performance & Peer Comparison

The article traces Square’s performance since its 2019 IPO, noting a 10‑year CAGR of 22.5% versus 14.3% for Coinbase and 9.7% for Marathon Digital. It also incorporates a graph (linked to a Motley Fool data hub) illustrating how Square’s crypto‑revenues have accounted for a growing share of total revenue—now 7.5% versus 2.8% for Coinbase.

3. The “Other Hot‑Spot” Section: Why the Competition Is Still Worth Watching

The article acknowledges that Square is not the only player to consider:

1. Coinbase Global, Inc. (NASDAQ: COIN) – The largest U.S. crypto‑exchange remains a strong buy for those who prioritize liquidity and user base size. However, the piece warns that Coinbase’s reliance on trading volume exposes it to tighter regulatory scrutiny and margin pressure.

2. Marathon Digital Holdings, Inc. (NASDAQ: MAR) – A mining‑centric firm with a massive mining rig capacity (120 TH/s as of Q4 2025). Marathon offers a more direct exposure to the “Bitcoin‑only” play, but its capital intensity and price‑to‑earnings volatility make it a more speculative bet.

3. Riot Blockchain, Inc. (NASDAQ: RIOT) – Similar to Marathon but with a broader focus on mining various cryptocurrencies. The article suggests that Riot’s valuation is stretched (forward P/E of 35×) and that it may be vulnerable to downturns in non‑Bitcoin asset prices.

The author recommends watching these stocks as part of a diversified crypto‑equity portfolio, especially if an investor wants exposure to both transaction‑service models and asset‑mining dynamics.

4. Key Risks Highlighted

The Fool article adopts a balanced stance by outlining the following primary risks:

• Regulatory Uncertainty: Pending U.S. legislation on cryptocurrency could impose capital‑reserve requirements or tax reforms that affect both exchange and mining companies.
• Competition from New Entrants: Decentralized exchanges (DEXs) and layer‑2 solutions (e.g., Polygon) might erode the transaction fees of centralized platforms like Square and Coinbase.
• Bitcoin’s Price Volatility: While Square’s crypto‑revenues are partially hedged through stable‑coin services, significant swings in Bitcoin’s price could still impact the company’s overall profitability.
• Operational Risk: Square’s rapid expansion into crypto services exposes it to potential cybersecurity threats and operational scaling challenges.

5. Broader Market Context and Future Outlook

The article situates Square’s recommendation within the broader macro environment of 2025:

• Institutional Adoption: More corporations (e.g., Tesla, Microsoft) have begun allocating a portion of treasury reserves to Bitcoin and other crypto assets, which the Fool sees as a bullish sign for integrated payment platforms.
• Regulatory Climate: The U.S. Securities and Exchange Commission’s (SEC) “crypto‑friendly” approach in 2024, coupled with the SEC’s guidance on crypto‑assets as “property” rather than securities, has lowered entry barriers for fintech companies.
• Evolving Consumer Behavior: The rise of “Web 3.0” wallets and the integration of crypto‑payment options into everyday apps are expected to increase transaction volumes, thereby supporting Square’s growth trajectory.

The article concludes with a long‑term perspective: If the crypto market continues to mature, and if Square capitalizes on its cash‑centric platform, the company could potentially double its crypto‑revenue share by 2030, creating a “double‑dip” upside for investors who commit now.

6. Follow‑Up Resources

To deepen understanding, the Fool article links to several companion pieces:

• “Cash App’s Crypto Adoption: Why Square Is Leading the Charge” – Provides granular data on user engagement trends.
• “Regulation in the Crypto Space: A Timeline of Key Events” – Offers a concise chronology of U.S. regulatory actions from 2018‑2025.
• “The State of Crypto Mining: Marathon vs. Riot” – Compares operational efficiency and cost structures.

Investors interested in the recommendation are encouraged to read these additional resources for a fuller picture of the market dynamics that influence Square’s valuation.

7. Takeaway for the Savvy Investor

In summary, The Motley Fool’s 2025 article positions Square Inc. as the prime long‑term equity play for investors looking to gain exposure to the cryptocurrency ecosystem without the higher volatility of pure‑play exchanges or miners. Square’s blend of robust financials, strategic product integration, and regulatory resilience sets it apart from its peers. Nevertheless, potential investors should weigh the outlined risks—especially regulatory uncertainty and market volatility—against the upside potential. Diversification across other crypto‑related stocks, as highlighted in the article, remains a prudent strategy for those who want to balance growth with risk mitigation.