Blockchain stocks are a great way for investors to gain exposure to cryptocurrency. During the 2020 crypto bull market, bitcoin mining and blockchain stocks soared and outperformed the underlying asset. The prospect of cryptocurrency becoming a primary asset class is becoming more of a reality, rather than just a dream.
The latest cryptocurrency bull market in 2020/21 proved that widespread adoption was inevitable. Interest was largely fueled by fiscal stimulus, institutional adoption and central bank digital currencies. Now, investors are betting that the U.S. Securities and Exchange Commission will approve of a Bitcoin (BTC-USD) ETF in the coming months. This will be a major milestone for the cryptocurrency industry as a whole. With the next Bitcoin halving approaching in 2024, these 3 blockchain stocks could soar in the next bull market.
Below are my top 3 blockchain stocks to buy right now!
Marathon Digital Holdings (MARA)
Marathon Digital Holdings (NASDAQ:MARA) is a vertically integrated Bitcoin mining company. They are one of the largest miners in the world, with fleet operations covering nearly 5% of the Bitcoin network. The stock is currently up 190% year-to-date, as Bitcoin recovered from its slump at the end of 2022.
Marathon Digital is continuing to garner momentum in November, as the cryptocurrency sector sees large inflows in Q4 2023. During the 2020 cryptocurrency bull run, Marathon Digital skyrocketed more than 4000%. As Bitcoin hit all time highs of nearly $69,000 in 2021, Bitcoin miners were making record profits. But the good times can come to an end as record inflation and higher interest rates hit the U.S. in 2022.
In 2022, rising energy prices, high debt levels and falling Bitcoin prices heavily affected the mining industry. Bitcoin bulls were not anticipating the price to fall more than 60% going into the new year. However, the future does look bright for Marathon Digital. In September 2023, Marathon produced 1,242 Bitcoin and increased their monthly hash rate by 20%. They have installed mining capacity of approximately 23 EH/s with 13,726 Bitcoin’s in their treasury.
For Q2 2023, Marathon Digital’s total revenue grew 228% to $81.76 million. Adjusted EBITDA increased to $25.6 million, compared to a loss of $167.1 million in the year prior. Totalled Bitcoin mined for the quarter was 2,926, up 314% YOY. This was driven by a rapid increase in operational hashrate growing from 0.7 EH/s in Q2 2022 to 17.7 EH/s in Q2 2023. If you’re bullish on cryptocurrency going into 2024, Marathon Digital is one of the best blockchain stocks to buy.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is on the rise this week as Bitcoin crossed the $35,000 mark. They are one of the largest Bitcoin mining companies in the United States. The company is currently ramping up their mining capacity at their new facility in Navarro County, Texas.
Riot also benefited tremendously from the cryptocurrency bull market and the higher prices in 2020/21. The stock rose more than 60X from its low in February 2020 to the peak in February 2021. Riot’s share price crashed back down to reality as the crypto winter began in the back half of 2021. However, operational improvements and expansions continue at both its Rockdale and Corsicana facilities.
By the end of November 2023, Riot expects its mining capacity to reach 12.5 EH/s. Their recent purchase of next generation MicroBT miners is expected to increase their hash rate by 7.6 EH/s. When fully operational, their mining capacity will exceed 20 EH/s by mid 2024. Currently, Riot holds approximately 7,327 Bitcoin’s in its treasuries producing an average of 12.1 per day. With Bitcoin and cryptocurrency on the rise, RIOT is a top blockchain stock to buy in 2023.
MicroStrategy (MSTR)
MicroStrategy (NASDAQ:MSTR) is an American software company which primarily provides business intelligence and cloud-based solutions services. However, in recent years they have emerged as one of the largest supporters of Bitcoin and blockchain technology.
Its founder Michael Saylor is a well known Bitcoin maximalist, and is largely against traditional fiat currencies. He believes Bitcoin is the best asymmetric bet of the century, and that Bitcoin will become a larger asset class than Gold. MicroStrategy has faced a lot of criticism in recent years, as their Bitcoin bet is extremely risky and could destroy shareholder value. However, if MicroStrategy is right on Bitcoin their shareholders will be rewarded handsomely. As of October 2023, MicroStrategy remains the world’s largest institutional holder of Bitcoin. They currently hold 158,400 Bitcoin in their Bitcoin treasuries, valued at approximately $5.62 billion USD.
Besides their exposure to Bitcoin, MicroStrategy is capitalizing on the market opportunities in artificial intelligence. Their Microstrategy One platform includes a large partnership network and integrated data, AI, and advanced cloud capabilities. As the Bitcoin halving approaches in 2024, MicroStrategy should certainly be kept on your radar.
On the date of publication, Terel Miles did not have (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 the InvestorPlace.com Publishing Guidelines.
