3 Blockchain Stocks to Buy Before the Breakthrough
Blockchain technology stands out as a highly influential and disruptive force, though some may overlook its investment potential amid newer, exciting tech trends. Nevertheless, discerning investors are eyeing select blockchain stocks to buy, anticipating a rekindling of market enthusiasm. Blockchain technology, often overshadowed by the crypto frenzy, is gaining momentum. The blockchain market was worth $4.8 billion in 2022, but projections suggest it will surge to $674 billion by 2030 and reach a staggering $2.3 trillion by 2032.
Blockchain’s allure lies in its versatility, spanning diverse industries and offering cost-efficiency, enhanced security and innovation. Experts estimate it could boost the global GDP by over $2 trillion by 2030. The resurgence of blockchain stocks, particularly those connected to crypto-centric firms, is exemplified by Grayscale Bitcoin Trust (OTCMKTS:GBTC), with a remarkable 211% year-over-year surge to $38.87 per share.
Consequently, this underscores blockchain’s potential in reshaping finance. As Bitcoin regains traction, keep an eye on these three blockchain stocks set to soar this year.
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Riot Blockchain (RIOT)
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Riot Blockchain (NASDAQ:RIOT) is a leading player in the cryptocurrency mining sector, primarily focusing on Bitcoin mining. Over the past year, RIOT’s stock has seen remarkable growth, surging by 90%. Moreover, Wall Street analysts assign a further potential upside of 65% and a ‘strong buy’ rating.
This bullish sentiment is underpinned by RIOT’s improving financial performance. Projections indicate a significant 49.8% bump in revenue expected per annum. Moreover, optimism surrounds the potential for a substantial increase in RIOT’s book value per share, especially in anticipation of the upcoming Bitcoin halving event in April.
Currently, Riot Blockchain holds a substantial portfolio of 7,362 Bitcoins. Historical data indicates that Bitcoin often experiences rallies before and after halving events, potentially leading to a more robust balance sheet for RIOT. This has prompted some investors to consider the stock undervalued, solidifying Riot Blockchain’s position as a promising blockchain stock with notable growth potential.
Block (SQ)
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Block (NYSE:SQ) presents a compelling opportunity among undervalued blockchain stocks. Boasting a forward price-to-earnings ratio of 35.72, the company holds strong appeal for investors. In its recent third quarter, Block demonstrated its financial prowess, with a noteworthy 15% year-over-year increase in gross profit. Moreover, it outperformed expectations with a revenue of $5.62 billion, marking a stellar 24.3% year-over-year growth, exceeding estimates by $190 million.
The transformation of Square into Block in 2021 reflects the company’s steadfast commitment to Bitcoin and blockchain technology. In June 2022, Block unveiled its ambitious plan for Web5, a pioneering Bitcoin blockchain platform for decentralized identity and data storage in applications. Recently, Block launched a Web5 toolkit, streamlining decentralized app development, signaling a promising future.
Moreover, Block unveiled a self-custody Bitcoin wallet in December 2023, reinforcing its dedication to Bitcoin security. These strategic initiatives, combined with Block’s early-mover advantage, position it favorably for growth and innovation in the blockchain industry.
Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) has experienced an impressive surge, with its stock witnessing a remarkable 218% upside in the past 12 months. However, it may be prudent for investors to exercise caution and await a correction before considering fresh exposure. The stock’s soaring performance is undeniably linked to the promising growth prospects within the AI market.
Additionally, it’s worth noting that NVDA’s GPUs are pivotal in cryptocurrency mining, a critical component of blockchain networks like Bitcoin (BTC-USD) and Ethereum (ETH-USD). Moreover, the cryptocurrency landscape continues to expand, with new digital currencies that support GPU mining emerging daily. This trend is poised to accelerate as cryptocurrency awareness spreads and accessibility grows, further bolstering NVDA’s position in the industry.
Furthermore, analysts anticipate a robust 29.3% yearly increase in earnings per share. This sustained growth will continue in the low double digits until 2028. Consequently, this forecast underscores NVDA’s resilience and its potential for sustained success in the years ahead.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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