Blockchain stocks are quickly becoming indispensable bets for savvy investors.
As the backbone of crypto transactions, blockchain technology offers unmatched transparency and security in record-keeping. Though traditionally known for its role in crypto, its utility spans various tech verticals and industries. It effectively boosts the integrity of transactions across multiple sectors within a decentralized framework.
Moreover, given the lofty analyst forecasts, blockchain could be one of the most explosive investing areas over the next several years. According to a report from Fortune Business Insights, the blockchain space could grow at 52.8% CAGR over the next eight years. Additionally, a recent survey by the crypto exchange Kraken showed a growing preference for crypto investments over conventional investing options such as stocks or real estate.
That said, these three blockchain stocks could yield superb long-term returns while aligning with rapid technological advancements in the niche.
Blockchain Stocks To Buy: Mastercard (MA)
Mastercard (NYSE:MA) is a juggernaut in the payment processing realm, which continues thriving in the shift toward a cashless economy. Despite the challenges the blockchain industry poses, Mastercard has proactively embraced and integrated the technology, bolstering its services while safeguarding its market position.
Mastercard is leading the charge in the blockchain realm through its transformative Multi-Token Network (MTN). The robust platform facilitates ease and security of transactions through its unique tokenization methods. Tokens are like digital versions of your bank account, holding money in a safer and more reliable form.
Moreover, Mastercard is evolving into a hotbed for DeFi app development, empowering developers to craft unique and potent applications. Its powerful platform offers a variety of APIs and tools for services covering everything from payments to security. Its partnership with MoonPay also underscores its push into blockchain and Web3, enhancing user trust and engagement across multiple industries.
Block (SQ)
Fintech giant Block (NYSE:SQ) is one of the most popular financial services and mobile payment companies. It’s renowned for its innovative applications, such as the Cash App, which attracts more than 50 million users globally. Over the past few years, the company’s focus has shifted towards blockchain through heavy investments in Bitcoin (BTC-USD) and becoming a DeFi app development platform.
Block has invested a massive $220 million into Bitcoin, and as per its first-quarter (Q1) results, its stake has grown to north of $573 million. Given the explosive Q1 BTC had, Block’s BTC-related gross profits jumped to $80 million. Also, the company announced plans to effectively reinvest 10% of its BTC profits back into the company. Moreover, the firm’s year-over-year (YOY) growth in profitability metrics has surged beyond its historical averages, showcasing impressive growth.
Furthermore, recent ventures such as Bitkey, its first Bitcoin wallet, allow Cash App users to trade directly with Coinbase Global (NASDAQ:COIN). Additionally, it has launched a developer platform called TBD to facilitate the creation of decentralized apps.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is one of the most dominant players in the BTC mining space, leading the charge with its energy-efficient ASIC miners. Given the strength in BTC prices during Q1 and the lion’s share of 2023, the firm has grown its revenue base at an encouraging pace. However, its stock price hasn’t followed, with RIOT stock down more than 30% year-to-date (YTD). With interest rate cuts on the horizon, the stock is undervalued, offering superb upside ahead.
The firm is financially resilient, having reported a massive cash buffer of $688 million in Q1, complemented by $606 million in BTC assets. This massive crypto reserve and a zero-debt balance sheet position Riot to make aggressive investments in its mining capacity.
Looking ahead, Riot’s hash rate capacity stood at 12.4EH/s as of Q1 and expects to take that level to 31.5EH/s by the year-end. Such strategic scaling is expected to increase its sales and EBITDA for 2025 significantly. Hence, the firm’s healthy financials, aggressive growth targets and favorable market outlook make RIOT stock a compelling pick.
On the date of publication, Muslim Farooque 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
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
