What is a joint stock company in the context of crypto and blockchain? This article breaks down the definition, operational mechanics, and real-world relevance of joint stock companies for anyone interested in digital assets or blockchain technology. By understanding this structure, you'll gain insight into how major crypto firms organize, raise capital, and scale globally.
A joint stock company is a business entity where ownership is divided into shares, which can be bought and sold by investors. In the crypto and blockchain industry, this model allows companies to raise significant capital by issuing shares to the public or private investors. Each shareholder owns a portion of the company proportional to their shareholding, and their liability is typically limited to their investment.
Joint stock companies are especially common among large-scale crypto mining firms, blockchain infrastructure providers, and fintech startups. This structure provides transparency, regulatory compliance, and access to public markets, making it attractive for institutional and retail investors alike. The flexibility to trade shares also enhances liquidity and investor confidence.
As of October 29, 2025, according to The Block, joint stock companies are playing a crucial role in the evolution of the blockchain sector. For example, TeraWulf Inc., a US-based bitcoin mining and high-performance computing firm, operates as a joint stock company and recently announced a landmark 25-year lease contract worth approximately $9.5 billion with Fluidstack. This partnership will deliver 168 megawatts (MW) of critical IT load at its Texas campus, supporting TeraWulf’s AI infrastructure integration.
Such large-scale projects are only possible due to the joint stock company structure, which enables firms to secure substantial financing through share issuance and project debt. TeraWulf’s majority stake (51%) in the venture and exclusive rights to future projects exemplify how this model supports aggressive growth strategies and institutional partnerships. The involvement of major backers like Google, which is supporting $1.3 billion of Fluidstack’s long-term lease obligations, further highlights the trust and scalability associated with joint stock companies in the crypto space.
What is a joint stock company’s main appeal for crypto investors? The answer lies in its structure and governance:
For those new to crypto investing, understanding what is a joint stock company helps in evaluating the credibility and growth potential of blockchain projects. It also clarifies the rights and protections investors have when participating in such ventures.
Joint stock companies continue to shape the crypto landscape. TeraWulf’s recent performance illustrates this: its stock price rose 22.88% on October 28, 2025, trading at $16.76, following the announcement of its new joint venture. The company’s contracted high-performance computing platform is set to exceed 510 MW of critical IT load, reinforcing its status as a low-carbon digital infrastructure provider.
Moreover, TeraWulf’s transition from traditional bitcoin mining to diversified AI infrastructure demonstrates the adaptability and resilience of joint stock companies in the face of evolving market demands. The company now targets between 250 MW and 500 MW of new contracted IT load annually, reflecting an aggressive growth strategy to meet global demand for GPU-intensive AI computing.
These developments are not isolated. The joint stock company model is increasingly favored by crypto firms seeking to attract institutional capital, form strategic partnerships, and comply with regulatory requirements. As a result, investors and stakeholders benefit from enhanced security, governance, and growth opportunities.
Despite their advantages, joint stock companies are sometimes misunderstood in the crypto community. Some believe that share ownership equates to direct control over company operations, but in reality, most decisions are made by a board of directors elected by shareholders. Additionally, while joint stock companies offer limited liability, investors should still assess market risks, regulatory changes, and project fundamentals before investing.
It’s also important to recognize that not all crypto projects are structured as joint stock companies. Many operate as decentralized autonomous organizations (DAOs) or private entities, each with distinct governance and risk profiles. Understanding what is a joint stock company helps clarify these differences and informs smarter investment decisions.
For users interested in exploring joint stock company investments within the crypto sector, Bitget provides a secure and user-friendly platform. Bitget supports a wide range of digital assets and offers educational resources to help users understand the benefits and risks of various business structures, including joint stock companies. Additionally, Bitget Wallet ensures safe storage and management of your crypto holdings, giving you peace of mind as you navigate the evolving blockchain landscape.
Ready to learn more about how joint stock companies are transforming the crypto industry? Stay updated with Bitget’s latest insights and explore new investment opportunities with confidence.