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The 3 Most Undervalued Blockchain Stocks to Buy in June 2024
As the potential of blockchain becomes increasingly evident across various industries, investors are eager to identify undervalued blockchain stocks that have the potential to deliver substantial returns in the coming years. This led to my list of blockchain stocks to buy for June this year.
As the blockchain industry continues to mature and gain mainstream adoption, id undervalued stocks with strong growth potential it becomes more crucial for investors looking to maximize their returns.
Although there is great potential in cryptocurrencies such as Bitcoin (BTC-USD), the potential of blockchain technology is immense. I believe we have only begun to see the tip of the iceberg when it comes to the transformative power of blockchain. Beyond its applications in cryptocurrencies, blockchain technology has the potential to revolutionize industries.
So here are my top three picks for investors interested in tapping into the blockchain sector. These names won’t stay this cheap for long, so paying attention to these names today could pay off in spades later.
IBM (IBM)
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IBM (NYSE:IBM), while not a pure blockchain company, has actively invested in e development of blockchain solutions for various industries, including supply chain management, financial services and healthcare. He is known for his hyperledger fabric blockchain solution, used by large enterprises.
IBM reported mixed results in the first quarter, with adjusted earnings of $1.68 per share beating expectations, but sales of $14.46 billion fell slightly short of analysts’ estimates. The company also announced plans to do so to acquire cloud software company HashiCorp for $6.4 billion, a move that complements IBM’s focus on helping enterprise clients and could also synergize with its blockchain ambitions.
IBM is definitely your father’s tech stock, being a low-beta, stable, dividend aristocrat. Although its dividend growth rate is lower than many others, it tops it off with a stable nature and a very manageable payout ratio.
IBM would work in a portfolio of blockchain investors if they valued stability over speculative growth.
Riot Control Platforms (RIOT)
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Riot control platforms (NASDAQ:REVOLT) focuses on Bitcoin mining and has significantly expanded its mining operations.
RIOT has revealed that it has gotten closer Bitfarm (NASDAQ:BITF) with a $950 million buyout offer, which was rejected. Riot Platforms, currently Bitfarms’ largest shareholder with a 9.25% stake, offered $2.30 per share to create “the world’s largest publicly traded bitfarm mining company.”
RIOT and other blockchain companies are the antithesis of IBM’s positioning in the blockchain industry. In order to stay afloat, RIOT and others are betting big on Bitcoin’s future capital appreciation.
Due to continually decreasing block rewards and increasing difficulty, the price of Bitcoin needs to progressively increase over time for these companies to make a profit. It’s a risky business model, but companies like RIOT could soar in value in the future if their long-term thesis plays out as expected, with the coins mined on the balance sheet worth fortunes.
RIOT has an impressive hash rate. It could become one of the most valuable companies in the world in terms of book value if the Bitcoin dream becomes a reality.
Currency base (COIN)
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Coinbase (NASDAQ:CURRENCY) reported it second consecutive quarterly profit, with net income reaching $1.17 billion in the first quarter of 2024, the highest in nine quarters. Net revenue also increased 115% compared to the same period last year, driven by a recovery in digital coin trading, largely due to the launch of new bitcoin ETFs in January.
THE halving event April really accelerated Bitcoin’s volatility, with the coin hitting a new all-time high not long after. Since then, the Federal Reserve’s indecision to lower rates and geopolitical turmoil have put a cap on its usually parabolic nature.
Yet it is so oscillated quickly around $60,000 – $70,000 in recent weeks, which are ideal trading conditions.
I believe this year will be historic for COIN, as one can naturally assume that higher volatility leads to more revenue from trading commissions and other subscription products while traders are glued to their screens. If rates were to fall this year, I believe the conditions are in place to see another all-time high broken as the cryptocurrency bull market is firmly in full swing.
As of the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, without prejudice to the InvestorPlace.com Publishing Guidelines.
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.