There are some blockchain stocks that every investor should have on their radar. These companies are strong competitors in the blockchain space and I think they offer an alternative to direct investments in cryptocurrencies such as: B. are Bitcoin (BTC USD).
The great thing about these blockchain stocks for those who enjoy taking risky positions is that they offer the potential for significant upside. The blockchain and cryptocurrency sectors have experienced tremendous growth and volatility in recent years, creating opportunities for investors willing to take the risks involved.
Additionally, many of these stocks are more volatile than the crypto market itself because investing in blockchain stocks involves greater risks than cryptocurrencies. Investors must deal with company-specific, idiosyncratic and other risks that do not exist with cryptos like Bitcoin.
However, the advantage is that these companies can reach higher heights due to their higher “beta” compared to the crypto market. Additionally, some of these companies are rated Strong Buy by analysts, further supporting the bull case.
So here are three blockchain stocks that investors should consider.
Mastercard (MA)
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MasterCard (NYSE:M.A) has ventured into the blockchain by partnering with major blockchain providers to issue cryptocredentials with the aim of strengthening security and trust in cryptocurrencies.
It also explores the Blockchain for solutions in other ventures. For example, its Provenance solution leverages blockchain for supply chain transparency, meeting the needs of various sectors such as luxury fashion and seafood
The company also has a “Strong buy” rating from analysts and is currently fairly valued. However, due to rising EPS forecasts for MA stock, I expect analysts to revise their price targets upwards as well.
MA stands out as one of those “blue-chip” blockchain stocks that investors who also want to be in the fintech industry should consider, without being tied exclusively to the wild moves of Bitcoin and the broader crypto market. Then it could be a good fit for people who have a lower risk tolerance and are nearing the end of their retirement journey.
Riot Blockchain (RIOT)
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Riot Blockchain (NASDAQ:REVOLT) specializes in Bitcoin mining and has seen significant stock growth. RIOT is aimed at a very different type of investor than MA, as investing in companies like RIOT involves significant risks.
The truth is that blockchain stocks like RIOT rely on ongoing speculation about rising Bitcoin prices to stay in business. This risk then magnifies potential gains and losses, increasing RIOT’s volatility.
Nevertheless, the company does everything it can to offer investors high returns. In 2024, RIOT will focus on expanding its Bitcoin mining capacity and efficiency. The company expects to reach a total self-mining hash rate capacity of 29 EH/s by the end of 2024. A further increase to 38 EH/s is planned when newly acquired miners are fully deployed in 2025.
Despite these efforts, the company’s shares have fallen by around 3% over the past year, and I think this then creates a buying opportunity. It has a “Strong buy” rating from analysts and also has a forecast increase of 65%, which should be achieved within the next twelve months.
Applied Digital Corporation (APLD)
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Applied digital society (NASDAQ:APLD), formerly Applied Blockchain, operates data centers that provide digital infrastructure. Of all the “Strong buyGiven the blockchain stocks on this list, APLD has the strongest consensus, with four analysts rating it that way.
I think APLD could be another one of those diversified companies that investors should pay attention to, especially if they are not so bullish on the Bitcoin mining industry in general, which is speculative. APLD instead provides the “tips and shovels” to the mining industry, but has a diversified revenue base.
Also the future looks profitable This makes it a must-watch for APLD stock investors. In fiscal year 2024, APLD expects total revenue to be between $385 million and $405 million and adjusted EBITDA to be between $195 million and $205 million.
Second quarter 2024 results showed a 242% increase in total revenue to $42.2 million compared to the same quarter last year, despite recording a net loss of $10.5 million, an improvement from a net loss of $26 .8 million in the same quarter represents period last year.
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, subject to InvestorPlace.com Disclosure Guidelines.