Blockchain stocks to buy are gaining investor attention as the technology continues to disrupt various industries. We know names like Bitcoin (BTC-USD) and Ethereum (ETH-USD) often steal the limelight. Yet, hidden gems in the blockchain space offer significant upside potential, especially in the current market environment.

Three blockchain stocks with strong buy ratings are ones that every investor should consider. These companies are all well-established players in the blockchain and cryptocurrency space. Also, they should appreciate in value significantly in the future.

These blockchain stocks with strong buy ratings have the potential to surge even higher than the major cryptocurrencies. The reason is that blockchain stocks often exhibit a higher correlation and Beta compared to Bitcoin itself. This allows them to experience more substantial price movements, whether up or down.

So, let’s delve into three blockchain stocks for investors to consider adding to their portfolios in May this year.

Riot Blockchain (RIOT)

Riot Blockchain (NASDAQ:RIOT) specializes in Bitcoin mining and is known for its aggressive expansion plans in this area. The company aims to significantly increase its hash rate capacity by the end of 2024, which positions it well for potential growth.

Riot aims to reach a self-mining hash rate capacity of 31 EH/s, focusing on developments at their Corsicana Facility. This facility, once fully operational, is poised to be one of the largest known Bitcoin mining facilities globally, with a total capacity goal of 1 GW.

Furthermore, Riot has secured options to purchase an additional 66,560 machines. And it has the potential to extend this to up to 265,000 more miners. That could ultimately increase their total mining capacity to over 100 EH/s.

Finally, nine analysts give Riot Blockchain an average 12-month price target of $17.29, implying an 87.93% upside from the current $9.50 stock price.

Mastercard (MA)

Mastercard (NYSE:MA) has incorporated blockchain into various financial services. Those include Cryptocredentials, for enhancing security and trust in cryptocurrency transactions.

Additionally, Mastercard is pushing forward with its blockchain capabilities through its Start Path Digital Assets program. This plan aids startups that are innovating with digital assets, cryptocurrencies and blockchain technology.

Moreover, analysts project that MA stock will outperform the market, maintaining its competitive edge against fintech challengers. The ratings from twenty-six analysts have given it a strong buy consensus rating. And, this comes with an implied upside of 8.69% at the time of writing.

Thus, MA could be one of those blockchain stocks to buy for those who like to invest in less speculative stocks. It has a very strong brand and position in the market, and its capital appreciation has been significant. Notably, its stock price has gained 80.95% over the past five years, and analyst forecasts could see it rise considerably more into the future.

Applied Digital Corporation (APLD)

Applied Digital Corporation (NASDAQ:APLD), previously known as Applied Blockchain, provides essential digital infrastructure and operates data centers.

APLD has the strongest consensus from analysts on this list. Eight analysts give Applied Digital Corporation an average 12-month price target of $10.50, implying a 217.22% upside from the current $3.48 stock price.

For the fiscal year 2024, APLD has projected its total revenue to be in the range of $385 million to $405 million. Also, adjusted EBITDA is expected to be between $195 million and $205 million. These figures were reaffirmed recently.

The company has been actively enhancing its infrastructure to support high-performance computing (HPC) and other digital services across North America. This includes significant investments in data center capabilities.

Therefore, APLD could be one of those blockchain stocks for investors to consider given the strength of analysts’ convictions regarding the company.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.