The cryptocurrency market is notorious for its volatility Bitcoins (BTC USD) Price fluctuations often affect the entire industry. However, certain crypto infrastructure companies continue to grow regardless of Bitcoin’s price movements. These infrastructure providers offer essential services and technologies that support the broader crypto ecosystem. This has led to my list of the best crypto infrastructure stocks for investors.
The main players in this space include companies involved in blockchain technology, crypto exchanges and digital payment solutions. I also believe that crypto miners can create a strong entry or diversify into the data center industry. However, this will only be possible if they decide on a strategic realignment. Semiconductor companies are now also worth considering.
So here are three of the best crypto infrastructure stocks that investors should consider adding to their portfolio this month. Don’t miss these opportunities.
AMD (AMD)
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modern micro devices (NASDAQ:AMD) also produces high-performance GPUs used in cryptocurrency mining. The company’s products are in demand for their efficiency and performance in blockchain-related calculations.
Robust growth prospects: Analysts predict strong growth strong growth for AMD. This includes a five-year revenue growth forecast of 17.08% and an EPS growth forecast of 83.03%. These forecasts suggest that the company is well-positioned to benefit from growing demand for advanced processors and graphics cards across various industries.
AMD has continually brought innovative products to market. These include its Ryzen processors and Radeon graphics cards. Both products have gained significant market share and have been well received by consumers and businesses alike. The company’s focus on innovation and performance has helped it compete effectively against larger competitors.
Despite its strong growth prospects and financial performance, AMD stock is valued relatively attractively compared to its peers. The company’s forward P/E ratio of 40x and PEG ratio of 0.66 suggest that the stock may be undervalued given its expected growth. This makes it one of the crypto infrastructure stocks that investors should consider.
Marathon Digital (MARA)
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Marathon Digital (NASDAQ: MARA) is a well-known Bitcoin mining company with significant infrastructure investments. Its large-scale mining operations benefit from efficient and scalable systems and are well positioned regardless of Bitcoin’s market fluctuations.
MARA MARA holds 18,536 BTC, which together with cash is worth $1.4 billion. These sizable Bitcoin holdings provide the company with a strong balance sheet and the potential to benefit from any future rise in Bitcoin price. MARA’s proprietary mining pool saw a 10% increase in recorded blocks compared to last year.
MARA is actively expanding its activities and researching new technologies. The company has significantly expanded immersion cooling technology, which can improve mining efficiency and reduce costs. MARA is also pursuing international projects, such as a 2-megawatt pilot project in Finland for sustainable heating.
MARA trades at a trailing P/E ratio of 9x and a forward P/E ratio of 6.17x, which is relatively low compared to the company’s growth potential. The company’s high return on equity (ROE) of 42.30% and return on invested capital (ROIC) of 19.86% indicates the ability to generate high returns for shareholders.
IBM (IBM)
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IBM (NYSE:IBM) is a major player in blockchain technology and offers enterprise solutions through its IBM Blockchain platform.
IBM’s recent acquisition The acquisition of HashiCorp for $6.4 billion is a significant step toward becoming a software and services company. HashiCorp’s expertise in cloud infrastructure management fits well with IBM’s hybrid cloud strategy. IBM has also invested significantly in artificial intelligence (AI) and has already achieved more than $1 billion in bookings for AI-focused products and consulting since mid-2023. As AI and blockchain become increasingly intertwined, I see great potential for IBM to continue its growth in these two industries.
The biggest draw for me to the company is this: IBM low beta of 0.72 suggests that the stock price is less volatile than the overall market. This defensive nature, coupled with the company’s consistent dividend growth over the past 28 years, makes IBM an attractive option for risk-averse investors seeking stable returns, especially during times of market uncertainty.
At the time of publication, the responsible publisher did not hold, directly or indirectly, any positions in the securities mentioned in this article.
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.