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3 Blockchain Stocks to Buy Now: June 2024
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Many investors get discouraged when they hear the words blockchain or cryptocurrencies. Aside from crypto majors like Bitcoin and Ethereum, many people associate the industry with fraud and scams. The industry hasn’t exactly built the best reputation. However, blockchain technology and applications are incredibly complex and potentially profitable.
Blockchain is a transparent and accurate digital ledger that is self-sustaining and does not require human intervention. This means that any transaction that occurs on the blockchain will be recorded and stored forever. Thanks to its decentralized structure, blockchain developments have revolutionized the fintech space by promising secure transactions, reduced compliance costs and efficient data processing.
Wall Street is turning to technology. This year, the SEC approved spot trading of Bitcoin and Ethereum ETFs in the United States. But, if you’re still on the fence, here are the top three blockchain stocks to buy now that we think could change your mind.
Currency base (COIN)
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If there is one company that provides exposure to the entire cryptocurrency and blockchain landscape, this is it CoinBase (NASDAQ:CURRENCY). Analysts They agree that Coinbase is a clear leader and a blockchain stock to buy now. Even after a stellar quarter and a 55% year-to-date gain, analysts’ average price target is still stable $263.84. The high end of the price target range has been raised to $450, implying that an upside of almost 100% is yet to come.
What has analysts so optimistic about Coinbase? It is the largest and most accessible centralized cryptocurrency exchange in the United States. Additionally, Coinbase has been aggressively expanding into international markets and has recently grown its global user base to over 100 million users in more than 100 countries around the world. In particular, its blockchain, Base, a platform for trading NFTs, meme coins and even building a Web3 business, has been backed by supporters who believe in its potential to have a significant impact on the future crypto economy.
COIN shares trade at 34 times forward earnings, down from 222 times forward earnings last quarter. Despite growth in revenue and profitability, Coinbase’s price valuation also fell to a more moderate 16.2x. In our eyes, Coinbase is a super easy blockchain stock to buy and own for this cryptocurrency bull run.
CleanSpark (CLSK)
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Another area of the blockchain industry worth considering is Bitcoin mining stocks. CleanSpark (NASDAQ:CLSK) is considered one of the leaders in this space, and Wall Street agrees. Analysts have an average price target of $26.40 for CLSK, indicating an upside of more than 45% from today’s price.
What makes CleanSpark a leader in Bitcoin mining and blockchain? The company specializes in investing in renewable energy sources to mine Bitcoin. After all, one of the main arguments against the proof-of-work consensus mechanism is that it uses a lot of electricity. Now that CleanSpark has arrived with the promise of more environmentally friendly Bitcoin mining, it has also attracted the attention of the Republican presidential candidate Donald Trumpwho recently met with CLSK executives to discuss the future of cryptocurrency mining in America.
As for the stock, CleanSpark has already gained over 60% in 2024. It trades at around 10.2 times salesright around the industry median and slightly above the five-year average of 8.6 times sales. Investors should consider buying this revolutionary blockchain entrant as the valuation stabilizes following its success last week.
Block (QS)
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Another company that dabbles in Bitcoin mining and services is To block (NYSE:m2). CEO Jack Dorsey has always had an affinity with Bitcoin, and Block was one of the first companies to introduce mass use of Bitcoin through its Cash App. Analysts at Yahoo Finance project an average of one year price target of $91.09, about 50% more than the current price!
In April, Dorsey announced that Block had completed the design of a 3-nanometer Bitcoin mining chip. This means that Block can now deploy its Bitcoin mining system for public purchase. As Block’s goal of making Bitcoin mining accessible to all comes to fruition, there’s no doubt that the company will also command the lion’s share of public sentiment. While the “world-leading semiconductor foundry” that Block is working with has yet to be revealed, this synergy will undoubtedly bring huge economies of scale for both companies.
Block’s stock also looks attractive at its valuation. The shares are traded at 1.5 times forward sales, well below the company’s five-year average of 5.5 times forward sales. The company has also improved and stabilized its cash flow and now trades at 16 times forward cash flow! Block stock remains cheap for a company on the verge of producing what could be an industry-changing product in the blockchain space.
As of the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.