In the ever-evolving landscape of financial markets, the emergence of blockchain technology has paved the way for innovative investment opportunities. This article explores the dynamic realm of blockchain stocks, presenting a curated list of the top 10 companies that stand at the forefront of this revolutionary sector. Unlike cryptocurrencies, blockchain stocks represent shares in companies leveraging blockchain technology to enhance various aspects of their operations.
Blockchain, a decentralized and secure digital ledger technology, has found applications far beyond the realms of cryptocurrency. Join us as we delve into the details of each top blockchain stock, exploring their current standing in the market and their unique contributions to the blockchain ecosystem. Whether you are a seasoned investor or someone exploring new avenues, this article serves as a comprehensive guide to understanding the realm of finance and technology.
What are Blockchain Stocks?
Blockchain stocks refer to the conventional shares available in the stock market that are associated with companies actively engaged in blockchain-related activities. Despite the existence of Exchange-Traded Funds (ETFs) specifically designed to mirror the market value of prominent cryptocurrencies like
(BTC) and
(ETH), it’s crucial to distinguish that companies dealing in blockchain are not inherently cryptocurrency-focused entities.
Instead, these companies provide services or products that leverage blockchain technology in various capacities. To illustrate, consider Nvidia, whose Graphics Processing Units (GPUs) find widespread application in cryptocurrency mining operations. Another case in point is Block’s Cash App, which facilitates the buying and selling of
. IBM, on the other hand, utilizes blockchain technology to assist clients in constructing resilient and transparent supply chain systems, as evident in its IBM Blockchain initiative.
Furthermore, Amazon, through its Amazon Web Services (AWS) cloud computing platform, empowers customers to effectively manage their individual blockchain platforms using the Amazon Managed Blockchain service. Moreover, the realm of Blockchain Stocks extends beyond just these examples, encompassing a diverse array of industries. Companies are increasingly recognizing the transformative potential of blockchain, leading to innovative applications in finance, healthcare, logistics, and more.
Investors interested in blockchain stocks can explore a broad spectrum of opportunities, from established tech giants integrating blockchain solutions to emerging startups pioneering advancements in decentralized technologies. Furthermore, as the blockchain ecosystem continues to evolve, these stocks are not solely dependent on the volatile fluctuations of individual cryptocurrencies. Instead, they represent investments in companies strategically positioned to harness the long-term benefits of blockchain innovation.
10 Best Blockchain Stocks To Buy Now
As the world navigates the digital era, the allure of blockchain’s transformative capabilities continues to captivate the investment community. From graphics processing unit manufacturers to financial technology innovators, each company’s role in the blockchain landscape is dissected to provide investors with valuable insights. For investors seeking exposure to the blockchain space, here are the top 10 best blockchain stocks to buy now:
1. Nvidia
Nvidia stands at the forefront as the preeminent producer of GPUs, pivotal components in critical technological domains such as artificial intelligence, autonomous vehicles, and gaming. Furthermore, GPUs play a crucial role in the realm of cryptocurrency mining, where specialized GPUs are utilized by “miners” to facilitate the processing of transactions on the blockchain, earning them newly generated digital coins as a reward.
While the sales of Nvidia’s cryptocurrency-focused CMP chips have experienced a slowdown corresponding to the decline in cryptocurrency prices during last year, there remains potential for a resurgence as the crypto market undergoes a recovery in recent months. Nevertheless, irrespective of the crypto market’s fluctuations, Nvidia’s overarching business portfolio continues to assert its dominance as an indisputable market leader and one of the best blockchain stocks to invest in.
2. IBM
While IBM has faced challenges in its recent performance, the company has strategically undertaken significant initiatives to revitalize its growth trajectory, making it a top blockchain stock to consider. A noteworthy move includes its acquisition of the open-source software developer Red Hat, presenting abundant opportunities for cross-selling within its enterprise client base.
On the frontiers of blockchain technology, IBM Blockchain has already delivered transformative solutions for notable clients such as Home Depot, Renault, Albertsons, and others. The potential for substantial growth exists should blockchain-based solutions gain increased traction in the future. A case in point is IBM Blockchain’s dedicated efforts towards assisting customers in constructing more reliable and efficient supply chains, exemplifying the company’s commitment to pioneering advancements in blockchain applications.
3. Block
Block, previously Square, a fintech firm, operates through two primary pillars: its payment-processing ecosystem catering to small businesses and the Cash App personal financial platform. Additionally, the company extends its reach into various domains, including business lending, a stock trading platform, and buy-now-pay-later financing. In essence, Block qualifies as a blockchain stock through two prominent avenues.
Firstly, the Cash App facilitates swift and seamless buying and selling of
for users, with the company recording a substantial $10 billion in
purchases in 2021 alone, underscoring its significant role in the overall business. Secondly, Block demonstrates a commitment to blockchain innovation through its in-house team of
developers, referred to as Spiral (formerly Square Crypto). This team is actively engaged in several exciting projects, alongside managing an open-developer platform for blockchain applications.
4. Amazon
Next on our list of top 10 blockchain stocks to invest in is Amazon. Beyond running the globe’s most extensive e-commerce platform, Amazon extends its dominion into the forefront of cloud infrastructure services through Amazon Web Services (AWS). Within the expansive suite of AWS offerings, lies Amazon Managed Blockchain, providing customers with the capability to establish and oversee their individual blockchain networks.
Moreover, the horizon holds promising prospects for Amazon to seamlessly integrate blockchain technology into its colossal e-commerce operations. While blockchain presently constitutes a negligible fraction of Amazon’s revenue, the ongoing evolution of this technology hints at the potential for substantial expansion in the future. As the landscape of blockchain continues to develop, Amazon stands poised to harness emerging opportunities and further leverage the transformative capabilities of blockchain within its multifaceted business ecosystem.
5. Mastercard
Mastercard, a behemoth in payment processing, has experienced substantial growth over the years, driven by the widespread shift towards a cashless economy, resulting in a surge in debit and credit card transactions. The transformative capabilities of blockchain technology stand poised to revolutionize the landscape of cashless payments, particularly in the realm of cross-border money transfers, historically plagued by sluggishness and high costs.
In a strategic move, Mastercard has forged partnerships with prominent blockchain technology firms and established the Crypto Card partner program. This initiative sees Mastercard collaborating with leading cryptocurrency companies in the Asia-Pacific region to introduce payment cards funded by cryptocurrencies. Furthermore, the company has played a pivotal role in the launch of the inaugural crypto-backed payment card in collaboration with crypto lender Nexo. This major shift makes it one of the most lucrative blockchain stocks to consider this year.
6. Coinbase Holdings
Coinbase stands as the preeminent cryptocurrency exchange globally, offering a diverse array of over 100 digital assets for trading on its platform. The company boasts a vast user base of approximately 108 million verified users spanning more than 100 countries, contributing to an impressive annualized cryptocurrency trading volume. Notably, Coinbase safeguards around $114 billion in cryptocurrency assets within its platform.
While Coinbase’s financial performance has encountered challenges amid recent declines in cryptocurrency prices, the potential for substantial recovery positions it as a key player in the realm of blockchain stocks. A notable advantage for blockchain investors is the adaptability of Coinbase, ensuring it remains a significant beneficiary regardless of which cryptocurrencies emerge as leaders in the evolving landscape. This resilience positions the company to thrive as blockchain technology continues to advance and diversify.
7. GlobalX Blockchain ETF
Perhaps the optimal approach for those looking to invest in blockchain stocks lies not in individual stocks but in an ETF. Introduced in mid-2021, the GlobalX Blockchain ETF offers investors the opportunity to access a diversified portfolio of blockchain stocks through a single investment. With an annual investment fee or expense ratio of 0.50% of assets, the GlobalX Blockchain ETF presents a reasonable cost structure for a focused fund.
Its portfolio includes investments in 25 different companies, encompassing some previously discussed entities (with Coinbase holding the top position) and others not directly listed on U.S. stock exchanges. In essence, for those who believe in the enduring potential of blockchain technology but prefer to avoid the challenge of selecting individual winners in the field, this ETF stands as a viable and convenient investment option.
8. Intel Corporation
The tech behemoth Intel Corporation has also joined the blockchain movement, introducing a dedicated processor tailored for Proof-of-Work consensus networks last year. Regrettably, the product, named Blockscale ASIC, was discontinued in April of this year. This chip was designed to contribute to the mining of
and other cryptocurrencies compatible with the SHA-256 hashing algorithm.
The future release of any new iterations of Intel Corporation’s “blockchain” chip remains uncertain. Nevertheless, given the company’s prominent standing in the CPU market, it continues to be regarded as one of the prime blockchain stocks for potential investment. As of the end of September, 71 hedge funds held shares of Intel Corporation, further affirming its standing as an attractive option in the blockchain technology sector.
9. Riot Platforms Inc
Next in our selection of top blockchain stocks to consider is Riot Platforms Inc, a notable player in the
mining arena. As of the conclusion of September, data reveals holdings from 17 hedge funds, reflecting a cumulative value of $56.90 million in long positions. Over the third quarter, Riot Platforms Inc successfully mined 1,106
. Marking a substantial growth of 77% year-on-year, the company concluded the quarter with an impressive count of 98,694 miners, amassing a balance of 7,327
.
Financially, Riot Platforms Inc reported a revenue of $51.9 million for the quarter, coupled with a net loss of $0.25 per share. This compares to the figures from the same period last year, which stood at $46.3 million in revenue and a loss of $0.21 per share. The resilience and performance exhibited by Riot Platforms Inc make it a compelling consideration among the best stocks currently available for investment.
10. Cipher Mining Inc
Concluding our curated compilation of the most promising blockchain stocks for current investment is Cipher Mining Inc, an entity closely aligned with the activities of Hut 8 Mining Corp, specializing in the realm of
mining. As of October, the company effectively managed a fleet of 70,000 mining rigs, yielding a total acquisition of 428
—an impressive uptick of 3% from the preceding month.
In the same month, Cipher Mining Inc orchestrated the sale of approximately 466
, maintaining a robust balance of 516
. As the third quarter reached its conclusion, Cipher Mining Inc attracted the interest of nine funds, as disclosed by Insider Monkey—a slight dip by two funds compared to the previous quarter. The strategic positioning and operational efficiency demonstrated by Cipher Mining Inc solidify its presence among the standout stocks currently warranting consideration for investment.
Why Start Investing in Blockchain Stocks?
Embarking on an investment journey in blockchain stocks holds significant allure, driven by the revolutionary potential of this emerging technology within the business landscape. The appeal stems from several factors that promise transformative effects and sustained profitability over time. Blockchain, positioned as a catalyst for operational efficiency, stands as a pivotal force capable of unlocking heightened profitability for organizations venturing into its realm.
Notably, the allure of blockchain has transcended its initial emergence, drawing attention from major players in the tech industry, including industry giants like Amazon and Mastercard. This high-profile acknowledgment underscores the growing recognition of blockchain’s profound impact on shaping the future of business operations. Moreover, the rapid digital shift accelerated by the global pandemic has positioned blockchain as a key player in tandem with other cutting-edge technologies such as cloud computing, e-commerce, and artificial intelligence (AI).
However, it is imperative to acknowledge the inherent risks associated with blockchain investments, particularly those involving cryptocurrencies. The landscape is rife with numerous cryptocurrencies backed by underlying blockchain projects, and not all of them prove successful. The volatile nature of cryptocurrency prices poses a significant risk, potentially resulting in a loss of principal for investors. Navigating these potential pitfalls requires a prudent approach, emphasizing due diligence and a nuanced understanding of the complex blockchain investment landscape.
How to Invest in Blockchain Stocks?
Exploring avenues for investing in blockchain stocks extends beyond the direct acquisition of shares in companies leveraging blockchain technology. Diversifying your investment approach can involve various strategies to capitalize on the burgeoning blockchain ecosystem. One approach is to directly purchase cryptocurrencies like
or
. Alternatively, consider investing in cryptocurrency trusts, such as Grayscale
Trust, by acquiring shares.
ETFs focused on companies with exposure to blockchain offer another avenue. Notable examples include Amplify Transformational Data Sharing ETF and Reality Shares Nasdaq NextGen Economy ETF. Crowdfunding through an initial coin offering (ICO) presents an opportunity to invest in new cryptocurrencies linked to innovative blockchain projects. Another pathway involves investing in public companies actively incorporating blockchain technology into their operations.
Giants like Walmart and Starbucks have embraced digital ledger systems, aiming for enhanced efficiency and profitability, thereby potentially driving long-term share price growth. Companies like PayPal Holdings and Block Inc. are making strategic bets on blockchain by facilitating cryptocurrency transactions through their platforms. Established players like Visa and Mastercard are also adapting and collaborating with blockchain startups to stay relevant in evolving payment landscapes.
CME Group, a leader in commodities and financial derivatives exchanges, stands out for establishing the first futures and options exchange for
. Salesforce has integrated blockchain capabilities into its platform, empowering customers to leverage this technology in day-to-day operations or accept cryptocurrency payments. Among cloud providers, Amazon Web Services, Microsoft’s Azure, and Google Cloud offer blockchain services, signaling the technology’s potential across diverse sectors.
Blockchain’s transformative impact extends beyond financial transactions and logistics, creating opportunities for growth and value creation. Investing in companies with a strategic and measured approach to understanding and deploying blockchain technology can be a compelling long-term strategy. Betting on the continued development of blockchain as a fundamental technology offers investors a chance to align with progressive companies at the forefront of innovation and potentially reap substantial rewards over time.
Conclusion
The world of blockchain stocks presents a dynamic and promising landscape for investors seeking innovative opportunities at the intersection of finance and technology. From industry giants like Nvidia, IBM, and Amazon to fintech innovators like Block and Mastercard, each highlighted company plays a unique role in harnessing the transformative capabilities of blockchain.
As blockchain continues to reshape industries beyond finance, including healthcare, logistics, and more, the allure of blockchain stocks becomes even more compelling. However, it’s essential for investors to approach blockchain investments with caution, acknowledging the inherent risks, particularly in the volatile realm of cryptocurrencies.
