In this article, we’re going to take a look at 14 best blockchain stocks to buy now. To skip ahead and see more stocks that made our list, you can follow this link to read about the 5 best blockchain stocks to buy now.
Is Blockchain Still Around?
Let’s go back to 2016. Trump was yet to win the election despite a lot of people saying there was no way in hell that could happen and pandemic was a word only used in history books. Around the same time, another word has started to catch on and that word was blockchain. Bitcoin had been around for 8 years already and Ethereum was picking up steam as a platform for decentralized applications. As Bitcoin’s price started to surge and ended up gaining more than 2,000% the following year, something akin to a craze emerged around blockchain.
Of course, many saw blockchain as a way to get rich quickly, since in order for a blockchain to function (i.e. to continue adding data to the decentralized ledger) it needs some sort of cryptocurrency to power it. That’s why in the following years we saw a waterfall of various cryptocurrencies that were used in hundreds of blockchain projects, with almost every one claiming to be the “next Bitcoin” or promising to revolutionize an industry that probably didn’t even need revolutionizing anyways. Blockchain has made its way into healthcare, government, real estate, supply chain, finance and other industries.
However, most projects died as the interest towards them dwindled. And it seems that the hype around blockchain has also died down. According to Google Trends, the peak popularity for blockchain was around December 2017. Currently the numbers are less than a third from their peak.
So, should I invest in Blockchain?
Even though the interest towards blockchain is far from the peak of its popularity, there are still many projects that deserve attention. Even Bitcoin, the cryptocurrency that lies at the beginning of the “blockchain revolution,” is still getting a lot of traction. In fact it’s been considered some sort of a digital Store of Value, despite the price fluctuations. Moreover, Bitcoin has been in the limelight recently, as evidence suggests that the US Securities and Exchange Commission is on track to approve a number of Exchange Traded Funds tied to Bitcoin, which would allow more retail investors exposure to the cryptocurrency.
Also, Bitcoin ETFs will likely mark a new milestone for the whole blockchain and cryptocurrency sector. Bringing Bitcoin into the mainstream investing will open up a path where the government will have to impose regulations that will ensure more transparency for both the currencies and their underlying projects. This in turn will allow to projects with strong development teams and solid backgrounds to stand out, which is bound to attract more investors.
In the meantime, until we see Bitcoin ETFs trading on the stock exchange, there are plenty of stocks to choose from that have exposure both to blockchain technology and to Bitcoin cryptocurrency in particular. If you are looking for best blockchain stocks to buy now, you should know that the three tech giants, Microsoft Corp (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc (NASDAQ:GOOGL), have made public their interest to blockchain technology and even included it in their portfolio of offerings in the cloud computing segment. If you are interested in more of a “pick-and-shovel” approach, then look no further than the largest chipmakers like NVIDIA Corp (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC), both of which manufacture chips that are widely used in cryptocurrency “mining”.
As a conclusion, in order to invest “correctly” in blockchain, you should look beyond the hype and understand what is the inherent value of blockchain. It is a way to store data, in a centralized or decentralized way and it’s best used for data that should not be corrupted or moved. That’s why one of the most useful applications for blockchain is in finance and that’s why companies like Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) have also expressed interest in this technology.
Photo by Pascal Bernardon on Unsplash
Our methodology
To identify the best blockchain stocks to buy now, we scoured our database for companies that have exposure to blockchain in one way or another, either by providing blockchain-based solutions, like Microsoft Corp (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc (NASDAQ:GOOGL), providing hardware that has applications in blockchain like NVIDIA Corp (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC), or are interested in applying blockchain technology in their business operations, such as Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V). We also identified a number of publicly-traded companies that are involved in Bitcoin mining. After compiling the list we narrowed it down to 14 best blockchain stocks to invest in based on hedge fund interest towards them.
14. Hut 8 Mining Corp (NASDAQ:HUT)
Let’s kick off with Hut 8 Mining Corp (NASDAQ:HUT), in which three hedge funds tracked by Insider Monkey reported owning long positions as of the end of September, down by three over the quarter. Among the investors bullish on the company are Ken Griffin’s Citadel Investment Group and Aaron Weitman’s CastleKnight Management. Hut 8 Mining Corp (NASDAQ:HUT) is focused on digital asset mining, such as Bitcoin and its stock has nearly trippled since the beginning of the year, although it’s still far from the all-time highs of $15 recorded in November 2021. The company is currently in the merger process with US Data Mining Group (doing business as US Bitcoin Corp). In the third quarter, Hut 8 Mining Corp (NASDAQ:HUT) mined 330 Bitcoin, down by 66% on the year. The company said the decrease was due to increase in network difficulty, suspension of operation at one of its facilities and ongoing electrical issue at another facility. Overall, Hut 8 Mining posted revenue of $12.51 million and a net loss of $0.24 per share.
13. Cipher Mining Inc (NASDAQ:CIFR)
Next in line in our list of best blockchain stocks to buy now is Cipher Mining Inc (NASDAQ:CIFR), which, similar to Hut 8 Mining Corp (NASDAQ:HUT) is engaged in Bitcoin mining. In October, the company operated 70,000 mining rigs and obtained 428 Bitcoin, which represents an increase of 3% from the previous month. Cipher Mining Inc (NASDAQ:CIFR) sold around 466 Bitcoin last month and has a balance of 516 Bitcoin. At the end of the third quarter, there were nine funds tracked by Insider Monkey that held shares of Cipher Mining Inc (NASDAQ:CIFR), down by two funds over the quarter.
12. CleanSpark Inc (NASDAQ:CLSK)
In CleanSpark Inc (NASDAQ:CLSK) there were 11 funds owning shares at the end of September, unchanged over the quarter. Among these investors, CleanSpark Inc (NASDAQ:CLSK) is a Bitcoin mining company, which has around 89,000 rigs as of the end of October. During the fiscal third quarter (ended June 30), CleanSpark Inc (NASDAQ:CLSK) generated revenue of $45.5 million, up by 47% on the year. The company also narrowed its net loss to $14.2 million from $29.3 million recorded in the same period of the last year.
11. Riot Platforms Inc (NASDAQ:RIOT)
Riot Platforms Inc (NASDAQ:RIOT) is the last Bitcoin miner in this list of best blockchain stocks to buy now. The company saw 17 hedge funds from our database holding long positions with a total value of $56.90 million as of the end of September. During the third quarter, Riot Platforms Inc (NASDAQ:RIOT) mined 1,106 Bitcoin. It ended the quarter with 98,694 miners, up by 77% on the year, and had a balance of 7,327 Bitcoin. For the quarter, Riot Platforms Inc (NASDAQ:RIOT) reported revenue of $51.9 million and a net loss of $0.25 per share, versus revenue of $46.3 million and a loss of $0.21 per share registered in the same period of last year.
10. Coinbase Global Inc (NASDAQ:COIN)
If you live in the US and have any relationship with the cryptocurrency space, then you’ve definitely heard about Coinbase Global Inc (NASDAQ:COIN) as it operates one of the largest cryptocurrency exchanges in the US. Coinbase went public in 2021 at a price of $381. As cryptocurrency markets were in a full-swing bull market at the time, the IPO was one of the most hyped at the time. However, since then Coinbase Global Inc (NASDAQ:COIN) saw its stock price drop by 75%. Year-to-date, Coinbase Global Inc (NASDAQ:COIN)’s shares have surged by 155% as the company managed to beat the top- and bottom-line estimates for the first two quarters of its fiscal 2023. For the third quarter, Coinbase Global Inc (NASDAQ:COIN) reported $674.15 million in revenue, beating the estimates by $20.6 million, but its net loss of $0.57 per share, was $0.04 lower than expected. At the end of the third quarter, there were 27 hedge funds tracked by Insider Monkey that held shares of Coinbase Global Inc (NASDAQ:COIN).
9. International Business Machines (NYSE:IBM)
Then there’s International Business Machines, which saw 53 funds holding $843.12 million worth of its stock at the end of September. As one of the leading tech companies, International Business Machines (NYSE:IBM) is quick to adapt new technologies and blockchain is no exception. The company provides a suite of blockchain-based products such as Supply Chain Control Tower, which also leverages Artificial Intelligence and allows companies from various industries, such as healthcare, to keep track of their inventory. Another prominent example is IBM Food Trust, which connects stakeholders from food industry and creates a network that helps producers, sellers, and consumers to keep track of every step of the production process. One of the clients that is taking advantage of the blockchain-based IBM Food Trust is Walmart Inc (NYSE:WMT).
8. Block Inc (NYSE:SQ)
Block Inc (NYSE:SQ) was previously known as Square Inc and the company renamed itself a couple of years ago to signal its commitment towards new technologies including blockchain. As a payments company, Block Inc (NYSE:SQ) could definitely benefit from adapting blockchain technologies into its products. Meanwhile, its CashApp platform allows depositing and withdrawal of Bitcoin and Block Inc (NYSE:SQ) holds Bitcoin both for itself and its customers. Block Inc (NYSE:SQ) also maintains a separate entity called Spiral that contributes to Bitcoin development, TBD, a developer platform focused on decentralized finance, as well as a bitcoin mining system and a bitcoin hardware wallet. During the third quarter, the number of funds bullish on Block Inc (NYSE:SQ) declined by six to 60.
7. Intel Corporation (NASDAQ:INTC)
The chipmaking giant Intel Corporation (NASDAQ:INTC) also jumped on the blockchain bandwagon and last year launched a processor dedicated specifically to be used in Proof-of-Work consensus networks, although in April this year the product was discontinued. The chip called Blockscale ASIC (application-specific integrated circuit) was supposed to help with mining Bitcoin and other cryptocurrencies compatible with the SHA-256 hashing algorithm. Currently it is not known whether Intel Corporation (NASDAQ:INTC) plans to release any new versions of the so-called “blockchain” chip. Nonetheless, given the company’s leading position on the CPU market, we still consider Intel Corporation (NASDAQ:INTC) one of the best blockchain stocks to buy now. At the end of September, 71 hedge funds in our database held shares of Intel Corporation (NASDAQ:INTC).
6. Mastercard Inc (NYSE:MA)
In Mastercard Inc (NYSE:MA), there were 140 hedge funds with long positions at the end of the third quarter, holding in aggregate $1.53 million worth of stock. As one of the leading payment processors, Mastercard Inc (NYSE:MA) is closely involved in blockchain technology from various avenues. For one, the company offers a dedicated crypto card which facilitates everyday transactions in cryptocurrencies. In addition, Mastercard Inc (NYSE:MA) has an accelerator program aimed at digital assets and blockchain projects. Moreover, in October, Mastercard Inc (NYSE:MA) announced a pilot project in partnership with the Reserve Bank of Australia and the Digital Cooperative Research Centre that would enable central bank digital currency (CDBC) use.
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Disclosure: None. 14 Best Blockchain Stocks To Buy Now is originally published on Insider Monkey.