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7 Blockchain Stocks to Buy Before July 27
Investors should have a growing awareness of the importance of blockchain stocks and the resulting investment returns that can be derived from them. I believe there are some favorable factors to consider, which are pushing investors to take quick action before July 27. Former President Donald Trump is plan a campaign speech that day at the annual Bitcoin (BTC-USD exchange rate) conference in Nashville, Tennessee, which could be a boon for many blockchain stocks.
Due to its ability to provide secure and transparent records, blockchain is essential for tracking and verifying transactions and assets across a variety of industries. For example, blockchain has been proposed in the management of vaccines to ensure proper distribution. It has also been proposed for other use cases, such as giving people immutable digital identities similar to a virtual ID card for people in developing countries.
Additionally, global central banks are now exploring the possibility of creating their own digital currencies, known as CBDCs, using blockchain. These digital forms of fiat currency seek to be used as a convenient payment method. Currently, 86% of central banks have shown interest in CBDCs, and many are planning to launch pilot projects.
Therefore, time is of the essence for investors to capitalize on these blockchain stocks ahead of Trump’s speech and buy them before their valuations skyrocket. Here are seven blockchain stocks that investors should consider.
Coinbase (COIN)
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Monetary base (NASDAQ:CURRENCY) is the largest cryptocurrency exchange in the United States and is therefore well positioned to benefit from the long-term prospect of growing cryptocurrency adoption, especially Bitcoin. As the cryptocurrency threatens to breach the $70,000 resistance level after a strong recovery, I advise investors to consider buying COIN stock before it’s too late. Coinbase is one of those blockchain stocks that I have been able to appreciate a lot after Trump’s speech.
Coinbase is also looking to develop new revenue streams and is not limited to transaction fees. The growth in subscribers and services seen on Coinbase, such as Coinbase Prime and Coinbase Custody, show that Coinbase can generate revenue in a more stable and sustainable way. Coinbase is one of the companies that could be very profitable.
Microstrategy (MSTR)
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Microstrategy (NASDAQ:MSTR) has become almost synonymous with Bitcoin and, due to the huge amount of assets on its balance sheet, sometimes follows a close correlation with the latter.
Trump has consistently supported Bitcoin. So when Trump gives his speech on July 27th, I think companies like MSTR that have large stakes in it will benefit greatly.
For this reason, MicroStrategy has established itself as the preferred investment vehicle for anyone looking to gain exposure to Bitcoin without the risk of custody.
The element of MicroStrategy’s approach that I find most compelling is its focus on acquiring more Bitcoin and, therefore, growing its BTC per share ratio. While other companies might hold onto BTC like they do with cash, MicroStrategy has embraced Bitcoin as part of its operating strategy and continues to buy more, effectively becoming the publicly traded BTC investment firm. This singular focus on Bitcoin also makes MicroStrategy quite different from most companies in the software industry.
I believe that companies like MSTR will eventually liquidate most, if not all, of their BTC and move into other lines of business, such as AI data centers (in the case of miners) or other high-margin businesses in the blockchain space. MSTR’s book value could then skyrocket along with Bitcoin’s meteoric rise.
Riot Platforms (RIOT)
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Riot platforms (NASDAQ:REVOLT) is a mining company that uses its energy-efficient ASIC miners to mine Bitcoin.
Trump has written in the past that he wants all the Bitcoin production be in the United States. This can only be a good thing for RIOT, given the speech he will be giving at the rally.
Although the company’s operations are tied to the price of Bitcoin, Riot has sought to distinguish itself with its energy management solutions. It can suppress energy consumption during peak consumption periods on the Texas power grid, which leads to the acquisition of credits and subsequently increases the company’s profitability. This approach to energy optimization can potentially offer Riot a hedge against Bitcoin price fluctuations, as the company can use these energy credits to support its mining revenues.
With the increasing difficulty of mining new blocks and decreasing block rewards, it is critical to shift to other revenue streams. If the price of Bitcoin does not increase enough and fast enough, companies like RIOT will not break even. However, as with MSTR, Riot Platforms has a significant amount of Bitcoin on its balance sheet, around $300 million. This could make the company a potential acquisition target or liquidation of its Bitcoin to move to a related line of business.
Hive Blockchain (HIVE)
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Hive Blockchain (NASDAQ:HIVE) has established itself as a solid and efficient Bitcoin mining company, especially after the recent Bitcoin mining reward halving.
Hive has been very strategic in acquiring modern and efficient mining hardware. This focus on operational excellence can be seen in the company’s ability to maintain its market share of the total Bitcoin network hash rate as global hash rates have increased.
It has also branched out from Bitcoin mining alone and has been actively exploring the high-performance computing (HPC) market. Although it is a relatively small source of revenue in the company’s revenue stream today, this HPC segment offers Hive the opportunity to move away from the risky Bitcoin market.
Therefore, Hive’s operational efficiency and diversification strategies make the company well-positioned to address the challenges of the crypto mining industry. It’s also good to see that it is moving towards a more sustainable long-term source of revenue.
CME Group (CME)
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CME Group (NASDAQ:ECM) remains one of the world’s largest derivatives markets, with a highly profitable and virtually unassailable business model. The company is well positioned for its wide variety of futures, options and other derivatives in cryptocurrencies, interest rates, equities, commodities and foreign exchange.
The bull case for CME is similar to Coinbase in that I expect interest in derivatives to increase due to it being a major market.
CME Group has also demonstrated great ability in developing and diversify products. It is constantly introducing new futures and options contracts to meet the needs of the market and expand its customer base. With the growing interest in the cryptocurrency market, I expect more derivatives for Bitcoin and altcoins to be launched on CME in the future. This has been a part of CME’s strategy over the years and has led to it remaining one of the giants in the global exchange operating industry.
Furthermore, CME Group’s operations are very efficient and the company generates a good amount of free cash flow, which is distributed almost entirely to shareholders in the form of regular and extraordinary cash flows. dividends.
International Trading Machines (IBM)
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An intriguing sector of International Business Machines(NYSE:IBM) business is its focus on blockchain technology. As one of the market pioneers in this field, IBM offers cutting-edge enterprise blockchain solutions and platforms with associated services to enable other companies to seize the opportunities of the new technology. As with its other business segments, IBM seeks to integrate enterprise users.
IBM’s focus on blockchain technology builds on its open source Hyperledger Fabricdeveloped and supported by IBM as part of the Linux Foundation’s Hyperledger project. Hyperledger Fabric is a highly scalable, enterprise-ready private blockchain IoT solution, and IBM has done a great job in coming up with this solution.
In addition to Hyperledger Fabric, IBM also offers a range of other blockchain services and consulting to help clients launch, build and deploy blockchain solutions.
I think IBM is well positioned because the enterprise market for blockchain is still very new compared to the consumer side. Federated and private chains have not yet been adopted, although there is interest from a privacy and security perspective. Increased security requirements and cybercrime could help drive blockchain adoption in an enterprise context.
Digital Marathon (MARA)
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Digital Marathon (NASDAQ:MARA) is a blockchain stock worth considering, given the complexity of its Bitcoin mining operations.
For example, Marathon has developed a two-phase immersion cooling technology in-house. This next-generation cooling system helps the company squeeze more hash power from its ASIC miners than conventional airflow cooling. Marathon can therefore improve its hash rates and mining numbers by speeding up its rigs’ clocks and clearing up airways.
Additionally, Marathon has its own mining pool, Mara Poolwhich, of course, will be an advantage. This allows Marathon to get a larger percentage of the transaction fees. The company applies this intelligence to mine more efficiently and compete with other companies in the market.
Additionally, Marathon has ventured into other areas of the cryptocurrency markets and has engaged in Caspa (KAS-USD) mining. This diversification helps the company reduce its dependence on Bitcoin and, at the same time, allows Marathon to be part of new projects in the digital asset sphere.
These factors make MARA one of those blockchain stocks that investors can buy.
As of the date of publication, Matthew Farley did not have (either directly or indirectly) any position in the securities mentioned in this article. The views expressed are those of the author, subject to InvestorPlace.com Posting Guidelines.
As of publication date, the responsible editor held a LONG position on BTC-USD.
Matthew began writing about financial markets during the cryptocurrency boom of 2017 and has also been a team member at several fintech startups. He then began writing about Australian and US stocks for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and New Scientist magazine, among others.