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3 Blockchain Stocks That Could Get a Boost From JD Vance
These three blockchain stocks appear well-positioned to capitalize on some strong tailwinds forming in the market
Republican presidential candidate Donald Trump has officially selected JD Vance has his running mate for the upcoming November election. With this appointment, many questions arise about the new vice presidential candidate’s stance on taxation, business, and certain sectors of the economy such as cryptocurrencies.
Vance has certainly offered an agenda that mirrors Trump’s, with plans to cut taxes, increase spending, and shift focus away from allies like Ukraine and Taiwan. He has also emphasized his interest in cryptocurrency, referencing his NFT collections and teasing a new release.
Vance, 39, is a first-term senator from Ohio. He served as a Marine combat correspondent, attended Ohio State University and Yale Law School, and joined Peter Thiel’s Mithril Capital in 2015. Vance rose to fame with his 2016 autobiography, “Hillbilly Elegy,” and founded his own venture capital firm, Narya, in 2019.
Thiel, who has invested $15 million in Vance’s Senate campaign, is joined by tech figures Marc Andreessen, Ben Horowitz, Joe Lonsdale, Doug Leone, David Sacks and the Winklevoss twins in backing the Trump/Vance ticket. Elon Musk has recently backed Trump, pledging $45 million a month to a pro-Trump super PAC.
Thanks to Vance’s stance and reputation as a cryptocurrency advocate, the blockchain stocks listed below could see a surge in the event of a victory.
Coinbase (COIN)
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Monetary base (NASDAQ:CURRENCY) aims to increase economic freedom by modernizing the financial system and making cryptocurrency accessible to over 1 billion people. The platform supports trading, spending, staking, and custody of global transfers. Additionally, the company is ready to announce its second-quarter 2024 financial report on August 1, after the market close.
Coinbase is known as a leader in traditional finance innovation that integrates cryptocurrencies into mainstream use. Holding nearly all of the cryptocurrency exchanges in the United States, Coinbase is expected to be among the fastest growing in terms of revenue, with analysts predicting revenue growth of close to 100%.
The company has seen impressive growth in recent quarters, with first-quarter earnings per share of $4.40 beating estimates of $1.09 by more than four times. Revenue also increased beyond the properties, as transaction activity doubled among retail investors and increased by $133 from institutional investors.
If these trends accelerate as more investors pile into a regulated and stable cryptocurrency industry, Coinbase could be one of the best beneficiaries of this trend to own.
Digital Marathon (MARA)
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Digital Marathon (NASDAQ:MARA) stands out as a top Bitcoin (BTC-USD exchange rate) mining companies. This is partly due to Marathon’s low output decay after the halving and advanced technologies such as two-phase immersion cooling. The company’s venture into mining other non-Bitcoin tokens, as well as its large Bitcoin holdings, could significantly increase revenue and book value in a growing market environment.
MARA stock could see significant returns due to the expected price performance of Bitcoin in the future after a Trump/Vance victory. The expansionary supportive policies from regulators and the company’s increased operating hash rate (which is up 106% year over year) are key catalysts to focus on. The company also has a healthy cash reserve of $1.5 billion and a new Caspa (KAS-USD) a mining initiative that puts the company in a position for growth.
MARA shares rose on Friday as Bitcoin price surged to $66,000. Marathon is also scheduled to report its Q2 2024 financials on August 1.
Bitcoin Trust Grayscale (GBTC)
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Recently announcing a record date of July 30, 2024 for the distribution of shares of its new “mini” BTC trust, Grayscale Investments (NYSE:GBTC) will increase once Vance takes over as VP. While the Grayscale Bitcoin Mini Trust still has regulatory approval pending, the trust will be listed on NYSE Arca under the ticker BTC. GBTC will issue shares of the BTC trust on its record date. Grayscale will file additional details with the SEC after the record date.
Starting July 31, GBTC will be listed on NYSE Arca. GBTC shareholders will receive proportional shares in the Mini Trust, while keeping their Bitcoin holdings in two funds. Bloomberg’s James Seyffart noted that the spinoff would split existing investments between the original fund and the new ETF.
As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com policies Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any position in the securities mentioned in this article.
Chris MacDonald’s love of investing led him to earn an MBA in Finance and hold several executive roles in corporate finance and venture capital over the past 15 years. His background as a financial analyst, combined with his passion for finding undervalued growth opportunities, contribute to his conservative, long-term investment perspective.