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3 Blockchain Stocks Worth Getting Excited About
Bet on these blockchain stocks set to grow as blockchain plays an increasing role in technology and finance
Blockchain stocks are quickly becoming must-have bets for savvy investors.
As the backbone of crypto transactions, blockchain technology offers unparalleled transparency and security in record keeping. While traditionally known for its role in cryptocurrencies, its utility spans various industries and technology verticals. It effectively increases the integrity of transactions across multiple industries within a decentralized framework.
Furthermore, given the high predictions of analysts, blockchain could be one of the most explosive areas of investment in the coming years. According to a report by Fortune Business Insights, the Blockchain space could grow at 52.8% CAGR in the next eight years. In addition, a recent survey conducted by cryptocurrency exchange The Kraken have shown a growing preference for cryptocurrency investments over conventional investment options such as stocks or real estate.
That said, these three blockchain stocks could generate strong long-term returns, aligning with the rapid technological advances in this space.
Blockchain Stocks to Buy: Mastercard (MA)
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MasterCard (London share:BUT) is a giant in the payment processing realm that continues to thrive in the transition to a cashless economy. Despite the challenges that the blockchain industry poses, Mastercard has proactively embraced and integrated the technology, strengthening its services and safeguarding its market position.
Mastercard is a leader in the blockchain field through its transformative Multi-Token Network (MTN). The robust platform facilitates ease and security of transactions through its unique tokenization methods. Tokens are like digital versions of your bank account, storing money in a more secure and reliable form.
Additionally, Mastercard is evolving into a hotbed for DeFi app development, enabling developers to build unique and powerful applications. Its powerful platform offers a variety of APIs and tools for services that cover everything from payments to security. Its partnership with Payment via MoonPay It also underlines its commitment to blockchain and Web3, strengthening user trust and engagement across multiple industries.
Block (SQ)
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Financial technology giant To block (London share:square) is one of the most popular mobile payments and financial services companies. It is renowned for its innovative applications, such as Cash App, which attracts over 50 million users worldwide. In recent years, the company’s focus has shifted towards blockchain through significant investments in Bitcoin (BTC-USD exchange rate) and becoming a DeFi app development platform.
Block has invested a whopping $220 million in Bitcoin, and according to its first quarter (Q1) results, its stake is grew to over $573 million. Given BTC’s explosive Q1, Block’s BTC-related gross profits jumped to $80 million. Additionally, the company announced plans to actually reinvest 10% of its BTC profits back into the company. Additionally, the company’s year-over-year (YOY) growth in profitability metrics has surged above its historical averages, showing impressive growth.
Additionally, recent initiatives such as Bitkey, its first Bitcoin wallet, allow Cash App users to trade directly with Monetary base Global (NASDAQ:CURRENCY). It also launched a developer platform called TBD to facilitate the creation of decentralized apps.
Riot Platforms (RIOT)
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Riot platforms (NASDAQ:REVOLT) is one of the most dominant players in the BTC mining industry, leading the charge with its energy-efficient ASIC miners. Given the strength of BTC prices during the first quarter and the lion’s share of 2023, the company has been growing its revenue base at an encouraging rate. However, its stock price has not followed, with RIOT stock down more than 30% year-to-date (YTD)With interest rate cuts on the horizon, the stock is undervalued but offers exceptional upside potential.
The company is financially resilient, reporting a massive cash buffer of $688 million in Q1, complemented by $606 million in BTC assets. This massive cryptocurrency reserve and zero-debt balance sheet positions Riot to make aggressive investments in its mining capacity.
Looking ahead, Riot’s hash rate capacity was 12.4 EH/s in Q1 and is expected to reach that level. to 31.5EH/s by the end of the year. This strategic retrenchment is expected to significantly boost its sales and EBITDA by 2025. Thus, the company’s healthy financials, aggressive growth targets, and favorable market outlook make RIOT stock an attractive pick.
As of the date of publication, Muslim Farooque did not have (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 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.
Muslim Farooque is a thoughtful investor and an optimist at heart. A lifelong gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a Bachelor of Applied Accounting from Oxford Brookes University.