There are a few blockchain stocks on offer Bitcoin (BTC USD) is in a historic bull market. I’ve said this before, but I believe this year will be the best for Bitcoin. All factors are in play: increasing institutional adoption, favorable macroeconomic conditions and a looming supply squeeze as the next halving approaches.
While Bitcoin itself is not a stock that can be traded on major exchanges, there are several blockchain stocks available for sale that generate significant revenue from crypto and blockchain technologies.
As the crypto market heats up, these stocks could benefit from increased interest and adoption in the space. However, it is important to understand that many of these companies are still highly speculative investments related to the volatile crypto market.
The prices of these stocks could rise as valuations are closely linked to Bitcoin’s performance. If my thesis is correct, these companies could be significantly undervalued, reaching where they are in six months.
Coinbase (COIN)
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Coinbase (NASDAQ:COIN) is closely intertwined with the blockchain and cryptocurrency world as one of the leading exchanges in the USA
In 2023, COIN exceeded expectations in the third quarter with revenue of $674 million, largely driven by an increase in subscription and service revenue. This financial success was accompanied by a significant reduction in net loss to $2.3 million.
The company is seeing institutional investment continue to focus primarily on Bitcoin, driven by pent-up demand from traditional investors. The market environment is also positive, such as possible interest rate cuts from the Federal Reserve and the development of crypto regulations that could bring significant benefits.
COIN is the second best alternative US investors have to invest directly in Bitcoin. I also think it may be significantly undervalued. This year’s trading revenue could reach record highs when the company reports its quarterly and annual reports this year.
Marathon Digital (MARA)
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Specialized in Bitcoin mining, Marathon Digital (NASDAQ:MARA) Operations and growth are closely linked to the blockchain ecosystem.
I think MARA could be one of the best Bitcoin mining companies for investors. Even despite expected lower mining profits due to the upcoming halving in April, the company could be on track to increase its valuation.
The reason for this is that there are some important developments on the horizon for the company. Mara is also looking to expand internationally.
Analysts believe MARA is nearing a financial turning point. The company is expected to move from a final loss in 2023 to a projected positive profit of $61 million in 2024. This optimistic financial outlook is supported by an estimated compound annual growth rate of 119%.
MARA’s strategic outlook for 2024 focuses on geographic diversification and expansion into new markets. The focus is particularly on Africa and other regions such as Paraguay and the United Arab Emirates.
Riot Platforms (RIOT)
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Financially, Riot Platforms (NASDAQ:REVOLT) reported a powerful blow in its fourth-quarter 2023 results. It reported earnings per share of 48 cents (EPS), well above the expected loss of 29 cents per share. This performance was underpinned by quarterly revenue of $78.83 million, although slightly below analyst forecasts of $84.94 million
What makes it a good buy is the fact that the company has not only increased its revenue forecasts for next year but also expects an improvement in its profit scenario. Analysts predict significant sales growth for 2024. This forms a solid foundation for the company’s future growth and operational expansion.
For the same reasons the other blockchain stocks on this list are undervalued, RIOT is also undervalued. Many analysts rate it as one of the strongest stocks that investors should consider for their portfolios. I agree with this sentiment.
At the time of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the author and are subject to InvestorPlace.com’s publication guidelines.