Wall Street’s focus on blockchain stocks is likely to continue in the second half of 2024. Blockchain, the technology behind cryptocurrencies like Bitcoin (BTC USD) And ether (ETH-USD) has applications that go far beyond digital currencies. In fact, many publicly traded companies are integrating blockchain into their operations or offering related services.
Recent research suggests that the blockchain technology market is expected to grow from $7.4 billion in 2022 to $94 billion in 2027, at a compound annual growth rate (CAGR) of over 66%. The potential of blockchain extends across various sectors, from Authentication of luxury goods To Combating illegal fishing and wildlife trade. Even the The Vatican has ventured into blockchain, using non-fungible tokens (NFTs) to digitize and preserve art and historical documents. So today we’re exploring two top blockchain stocks and a blockchain exchange-traded fund (ETF) that you can add to your must-watch list in July.
CleanSpark (CLSK)
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The first name in our range of blockchain stocks is CleanSpark (NASDAQ:CLSK), a Bitcoin mining company with a commitment to sustainability. The data centers are mostly in operation on low-carbon energy.
In the second quarter of fiscal year 2024, CleanSpark achieved record revenue of $111.8 million, up 163% year-over-year (YOY). Net income rose to $126.7 million, resulting in EPS of 59 cents, a significant improvement from the loss of 23 cents a year ago. CleanSpark ended the quarter in a robust financial position, with working capital of $632.7 million and minimal debt of $12.8 million.
CleanSpark has cleverly expanded the post-processing.Bitcoin halving by acquiring competitors and strengthening its presence in the mining sector. Recent acquisitions including two locations in Wyoming And five in Georgia, have increased their hashrate to over 20 exahashes per second (EH/s) and are targeting 50 EH/s by 2025. Hashrate, which measures mining efficiency, directly affects the chances of receiving rewards. CleanSpark is now new Announcement to purchase GRIID infrastructure (NASDAQ:GRDI) continues to improve its market position and aims for 100 megawatts (MW) capacity in Tennessee by year-end and scaling to 400 MW by 2026.
CLSK stock has returned over 45% year-to-date (YTD). Despite trading at a premium valuation of 9.2x salesAnalysts remain optimistic and predict a 65% increase with a 12-month median target of $26.50.
iShares Blockchain and Tech ETF (IBLC)
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Investing in blockchain stocks can mean potential long-term returns. Therefore, a blockchain ETF can offer diversification, simplicity and access to innovative technology, making it an attractive choice.
Next up in today’s list of blockchain stocks is the iShares Blockchain and Tech ETF (NYSEARCA:IBLC). Launched in April 2022, IBLC tracks the NYSE FactSet Global Blockchain Technologies Indexinvests primarily in companies that advance blockchain and crypto technologies worldwide.
Since the net assets are over $23.5 million, it is still a small fund. IBLC invests 77% in information technology and 22% in the financial sector and holds 35 stocks. Because the ETF is weighted by market cap, the top 10 holdings make up more than two-thirds of the fund. The leading names include Marathon Digital Holdings (NASDAQ:MARA), Cleanspark, Coinbase Global (NASDAQ:COIN), Hut 8 (NASDAQ:HUT), And Terawulf (NASDAQ:WULF). Geographically, the USA leads the way with almost 82%, followed by Canada, Australia and China.
So far in 2024, IBLC has gained 15%, supplemented by a dividend yield of 1.2%. The shares are currently trading at 22.4x trailing earnings and 3.5 times book value. We should remind readers of the 0.47% expense ratio if they seek exposure to blockchain stocks through this ETF.
Mastercard (MA)
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To conclude our discussion on blockchain stocks: MasterCard (NYSE:M.A) is becoming a leading global payment provider that advances distributed ledger technology. The company made it to the Forbes 2023 list Blockchain 50 listin which companies that invest heavily in blockchain are presented.
In May, Mastercard reported solid results for the first quarter of 2024. Net sales reached $6.3 billion, up 11% year over year on a constant currency basis. Adjusted diluted earnings per share increased to $3.31 from $2.80 in the year-ago quarter. The operating margin was 56.8% compared to 54.6% in the previous year.
Mastercard focuses on digital payments, particularly contactless and tokenized transactions. The company’s goal is complete implementation E-commerce tokenization in Europe by 2030 to improve transaction security and accessibility. In addition, Mastercard has works with blockchain technology companies and founded a Crypto card program to introduce crypto-financed payment cards.
Wall Street notes that Mastercard is also using blockchain and artificial intelligence (AI) Investments to renew its processing capacities. In particular, the company employs Generative AI for fraud detectionThis achieves twice the speed of identifying compromised cards compared to previous methods.
Since January, MA shares have gained around 5% year-to-date while shares are trading at 30.5x expected earnings and 16.5 times sales. Finally, analysts have determined one 12-month median price forecast of $514.07 for Mastercard shares, a potential gain of 14%.
At the time of publication, Tezcan Gecgil did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.