With the benchmark cryptocurrency recently hitting an all-time high, it was inevitable that interest in the space overall would skyrocket, which boded well for so-called blockchain stocks. Basically, these are companies that either mine cryptos or facilitate their acquisition. Basically, they offer an alternative route to decentralized wealth.
But why the hell would you want to buy blockchain stocks when you can buy cryptos instead? As with everything in life, there are pros and cons. As for the risks of crypto-related companies, they pose significant risks. Plus, something could go terribly wrong over the weekend – and you wouldn’t be able to respond until the market opens.
However, there are also positives. Above all, blockchain stocks avoid the administrative vulnerabilities that can drive crypto investors crazy, such as lost passwords or, even worse, a cyber breach. In other words, if you choose publicly traded securities over crypto itself, certain basic protections apply.
Below are interesting blockchain stocks to add to your watchlist.
Marathon Digital (MARA)
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When it comes to blockchain stocks like Marathon Digital (NASDAQ:MARA), headwinds are to be expected. With the coming Halving event For the benchmark crypto, the reward tokens for verifying transaction data on the blockchain will be halved. Theoretically, this puts pressure on the respective virtual currency.
However, we must also take into account the great enthusiasm for the crypto market. Nowadays it is no longer hardcore advocates who participate in the market. Instead, we have large institutional players through the approval of industry-related exchange traded funds. In addition, government authorities are discussing how to deal with this innovation. Accessibility and acceptance have skyrocketed.
As long as interest in cryptocurrencies remains high, Marathon should have a future. Yes, it is extremely volatile, but also interesting for speculators. For those concerned about longer-term wildness, consider call options that expire if the halving event were to occur. expected on April 19th.
Cipher Mining (CIFR)
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One of the newer options among blockchain stocks, Cipher mining (NASDAQ:CIFR) entered the fray in the prime of 2021. However, as crypto sentiment began to weaken sharply in the final months of the year, CIFR stock also weakened. Despite all the recent excitement surrounding the decentralized ecosystem, CIFR has still lost almost 65% of its share value since its stock market debut.
This is something to keep in mind before you delve too deeply into blockchain stocks. However, with benchmark crypto hitting a new record and mainstream awareness increasing, now could be an interesting time to consider CIFR. For the current fiscal year, analysts expect sales to reach $152.7 million. If so, that would represent a 20.4% increase over last year’s figure of $126.84 million.
Looking ahead to 2025, revenue could rise to as much as $250.44 million. If so, that would be a 64% increase over forecast 2024 sales.
Tantalizingly, Cipher’s consensus view is one unanimous strong buy. The average price target of $5.88 implies an upside potential of nearly 68%.
Coinbase (COIN)
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Technically, Coinbase (NASDAQ:COIN) isn’t exactly a pure name among blockchain stocks. Instead, it is primarily known as a crypto exchange and wallet services. However, the platform is so deeply rooted in the decentralized ecosystem – essentially providing a gateway for people to easily participate in the sector – that I would be remiss not to mention it.
Since the beginning of the year, COIN stock has gained almost 64% in share value. Given the huge enthusiasm for all things crypto, this is hardly surprising. While the benchmark digital asset may get the most fame, retail investors will invariably look for coins and tokens with lower unit prices. This dynamic should also benefit Coinbase.
After all, the company itself — even as it continues to attract unwanted attention and even controversy — is a known commodity. That’s a big plus in the wild world of crypto, where accountability measures are similar to those on Capitol Hill; As I said, absolutely none. So if you believe in crypto, you should also believe in Coinbase.
At the time of publication: Josh Enomoto did not have, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.