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Rags to Riches: 3 Blockchain Stocks That Could Make Early Investors Rich
Build your portfolio with blockchain stocks for early investors, focusing on companies with strong fundamentals
Blockchain stocks for early investors are gaining traction.
With the crypto space evolving rapidly, the spotlight is on buying the best blockchain stocks to expand your investment portfolio. Additionally, opting for blockchain stocks over direct cryptocurrency investments helps you avoid the risks of owning cryptocurrencies directly.
While the prospect of engaging with blockchain technology is enticing, the challenge lies in choosing stocks that offer a blend of stability and healthy upside potential. By doing so, investors can effectively navigate the industry’s notorious pitfalls to identify companies poised for sustained growth.
With that said, here are three blockchain stocks for early investors that offer significant exposure to this rapidly growing space. These stocks are great opportunities for those looking to tap into the potential of blockchain technology while maintaining a solid investment base. Additionally, these companies have excellent fundamentals and continue to grow in line with the broader market.
Blockchain Stocks for Early Investors: Block (SQ)
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To block (NYSE:square) is a major player in the consumer credit and payment processing industry. In recent years, it has evolved from its fintech origins to become a leading player in the blockchain space.
As a result, we’ve seen its operating results rise in line with the cryptocurrency boom over the past year. It comfortably beat analyst estimates in each of last year’s four quarters, substantially improving its bottom line metrics.
In its first quarter (Q1), Block reported a robust gross profit jump of 22% year-on-year (YOY), led by its Cash Application AND Square platforms. Cash App Gross Profits Increased 25% to $1.26 billion, while Square’s gross profits rose 19% to $820 million. As a result, the company’s net profit quadrupled during the quarter, making it one of the most profitable operators in its niche.
Bitcoin (BTC-USD) sales were a major contributor to its impressive results, with Block reporting a significant increase in its BTC transactions. It sold $2.2 billion in BTC in the first quarter, a remarkable 25% increase from last year.
Additionally, it announced a change in its approach to investing in Bitcoin. The company will now award 10% of your monthly gross bitcoin profits to investments in Bitcoin. This strategy will help mitigate investment volatility and optimize long-term growth.
Spark Cleanup (CLSK)
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Clean spark (NASDAQ:CLSK) is a famous Nevada-based Bitcoin miner that has cleverly capitalized on the cryptocurrency boom. This is demonstrated by the incredible price performance of CLSK shares, which it has It rose by 260% in the past year.
With an impressive mining capacity exceeding 17 exahashes per second, CLSK stands out for its commitment to sustainability in cryptocurrency mining. It aligns perfectly with regulatory standards in an industry often criticized for its sustainability footprint.
Furthermore, its financials have been a visual delight lately, posting triple-digit sales growth over the past three quarters. In its second quarter (Q2) report, recorded a 163% increase in sales to $111.8 million compared to the prior-year period. Perhaps more impressive was the turnaround in its net income to $126.7 million from a previous loss of $18.5 million.
Additionally, CLSK is channeling its recent gains into strategic market expansion. It announced plans to acquire a large Bitcoin mining infrastructure in Wyoming, increasing its capacity by more than 23%. Additionally, it announced that it was developing a vertically integrated Bitcoin mining player, GRIID Infrastructure (OTCPK)this week to further expand its position in the cryptocurrency sector.
Digital Marathon (MARA)
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Digital marathon (NASDAQ:MARA) is another giant in the North American cryptocurrency mining scene. It is one of the OG players in the niche, having gained over 625% in value over the past five years. It’s also up 47% in the past year alone, but has lost most of those gains in the past six months.
However, MARA remains in great shape to continue pushing forward and continue to expand its market share in its niche. It recently reported its impressive Q1 results, where sales increased 223% to $165.2 million compared to the same period last year. Furthermore, he reported a staggering net profit of $337.2 millionshowing an impressive 184% year-on-year jump.
MARA continues to grow its operations. It increased BTC output to 2,811 coins, up 28% from last year, while increasing its hash rate by 142% to a mighty 27.8 exahash per second. So, with such strategic progress and stellar operating numbers, it’s an excellent time to grab MARA stock on the dip. Furthermore, in a recent article by Ian Cooper of InvestorPlace, MARA note historic rally around Bitcoin halving events, such as the one on May 11, 2020.
As of the date of publication, Muslim Farooque 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 writer, subject to InvestorPlace.com Publishing Guidelines
Muslim Farooque is a passionate investor and an optimist at heart. A longtime gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s degree in applied accounting from Oxford Brookes University.