The cryptocurrency sector continues to mature and significant trends are emerging in 2024 that underscore the growing importance of infrastructure within the industry. Notable investment areas include blockchain infrastructure and digital payments solutions. These are crucial and essential to supporting the wider adoption of cryptocurrencies.
In addition, the regulatory environment to evolveMany countries are developing frameworks to support the growth of the crypto industry. The aim of these regulations is to create clarity and security.
All of these points are bullish tailwinds that crypto infrastructure stocks will be worth far more in the future. The following companies deserve investor attention based on their growth trajectory and overall potential.
So let’s look at three crypto infrastructure stocks that investors should consider adding to their portfolio this month.
Marathon Digital (MARA)
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Marathon Digital (NASDAQ:MARA) is one of the largest listed stocks Bitcoin (BTC USD) Mining company.
In fact, MARA’s revenue increased by in the first quarter of 2024 an impressive 223% Year for year (YOY) to $165.2 million. Increased Bitcoin production and higher Bitcoin prices drove the stock higher. The company’s mining operations are highly profitable, with adjusted EBITDA increasing 266% to $528.8 million.
Marathon Digital has set ambitious growth plans for the future, which could lead to further increases in sales and profits. The company is targeting mining capacity of 50 EH/s by year-end 2024, nearly doubling the 27.8 EH/s at the end of the first quarter.
From a valuation perspective, MARA’s current price-to-earnings ratio (SPORTS) Ratio of 6.17x looks pretty good attractive whether the company can implement its growth initiatives. Analysts predict strong sales growth. And revenue is expected to rise over 80% to $710 million in 2024. Therefore, MARA’s valuation metrics could quickly rise to levels more in line with the company’s robust growth profile.
CME Group (CME)
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CME Group (NASDAQ:CME) operates derivatives exchanges, including for cryptocurrencies such as Bitcoin and ether (ETH-USD).
In the first quarter of 2024, the CME Group reported Record adjusted net income and earnings per share. This was driven by strong trading volumes in key products such as US Treasury futures and options as well as commodities. The company’s average daily volume reached 26.4 million contracts. Revenue rose a respectable 3.2% year-over-year to $1.5 billion, while adjusted earnings per share rose 3.4% to $2.50.
On the other hand, CME shares are trading at almost 20x forward profit Estimates. While this is not overly expensive relative to the broader market, it is not an obviously favorable ratio for a mature, slow-growing financial exchange. While the stock’s modest dividend yield of 2.36% is attractive, it’s also not high enough to deliver significant short-term outperformance. Still, CME’s initiatives are enough to make it one of those crypto infrastructure stocks that could double within the next decade as demand for derivatives increases.
Advanced Micro Devices (AMD)
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modern micro devices (NASDAQ:AMD) makes GPUs and other computing devices used in cryptocurrency mining.
Notably, AMD stock could potentially double from current levels. First, AMD delivered impressive financial results in the first quarter of 2024 with revenue growth of 2% year over year to $5.5 billion despite a challenging macroeconomic environment. The company’s data center and customer segments were particularly strong, each growing over 80%.
Looking ahead, AMD is poised to capitalize on the explosive growth of artificial intelligence (AI). As Chief Executive Officer (CEO) Dr. Lisa Su noted that the widespread use of AI in many markets is driving demand for significantly more computing power. AMD enables AI capabilities across its entire product portfolio, from data center GPUs and CPUs to PC processors. The company’s MI300 accelerators are showing strong early traction.
Additionally, the main risk to the bullish thesis lies in AMD’s riches Evaluation. With an expected P/E ratio of 44x, the stock is already pricing in a lot of growth. AMD needs to maintain its strong execution and market share gains to justify its premium multiple. However, it is one of those crypto infrastructure stocks that has a good chance of doubling in value.
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.
At the time of publication, the responsible publisher did not hold, directly or indirectly, any positions in the securities mentioned in this article.