Unlock potential with the best blockchain stocks offering a cushion against crypto downturns
Investing in blockchain through cryptocurrencies is incredibly risky. The bulls will quickly point out that Bitcoin (BTC-USD) has delivered an earth-shattering return of more than 14,600% in the past decade. However, if we narrow the time horizon to 3 years, BTC has actually underperformed the S&P 500. Hence, despite the dazzling returns, BTC’s wild price swings have left investors dizzy. Perhaps betting on blockchain stocks to buy may be a smarter choice for those aiming to profit from the technology’s rapid expansion.
Blockchain stocks represent businesses that have embraced blockchain technology, layering it across their business operations or developing related products and services. Many of these businesses aren’t pure plays, which gives them a major cushion during a crypto bear run. Also, these stocks tend to offer a healthy level of transparency and security, making them remarkably more accessible. Moreover, blockchain stocks are less encumbered by regulatory, liquidity, and tax complexities that are typical in the crypto realm.
CleanSpark (NASDAQ:CLSK) is one of the hottest crypto mining stocks, and it outperformed the broader market over several intervals last year. After delivering an eye-popping 360% gain last year, CLSK stock is up over 55% year-to-date (YTD). In the past six months alone, CLSK has surged 292%, underscoring the investor enthusiasm for the stock.
The rapid gains in its stock price are linked to its impressive top-line expansion over the past year. Revenue growth stands at a lofty 75% year-over-year (YOY), with forward estimates pointing to a similar growth trajectory. Moreover, the firm posted an unexpected profit in its first-quarter (Q1) earnings print. Its GAAP EPS shot up to 14 cents compared to the negative 24 cents estimate. Likewise, net sales jumped to $73.8 million, blowing past the $69.8 million while growing by more than 165%. It smashed virtually every consensus top-and-bottom-line estimate, leading to a 12% post-earnings spike.
As we look ahead, top-line estimates of $109.33 million for the upcoming quarter point to a 157% jump in sales. Moreover, with another profitable quarter and triple-digit sales growth, I expect CLSK stock to spike again.
Despite its show-stopping financials, including a jaw-dropping 100% gross margin, Mastercard (NYSE:MA) continues to push the innovation envelope. It’s been one of the most consistent businesses in recent memory, shown by 12 consecutive years of dividend payout growth, among other industry-leading metrics. Lately, we’ve seen the payments giant make major inroads in the blockchain realm that could re-define its long-term growth trajectory.
Mastercard’s robust platform facilitates seamless crypto transactions, enabling users to buy and cash out cryptos through more than 100 million locations. Moreover, compliance is a big theme in its blockchain strategy, streamlined by its savvy Cipher Trace acquisition. The powerful crypto analytics firm has significantly strengthened Mastercard’s compliance and security capabilities. Moreover, the company actively seeks to drive widespread adoption of blockchain technology through strategic partnerships with prominent blockchain networks and financial institutions.
Therefore, MA stock is likely to benefit immensely from the proliferation of the blockchain space, positioning it for healthy gains ahead.
Investing in blockchain can be incredibly daunting, especially without understanding the subject. It spans a wide variety of areas, from financial transactions to healthcare and ID verification, among others. Moreover, each vertical has immense growth potential, and you wouldn’t want to miss out on either. The Global X Blockchain ETF (NASDAQ:BKCH) offers perhaps the best solution to this conundrum.
The BKCH ETF invests in 27 leading blockchain stocks, covering a broad spectrum of sector verticals. It allows investors to effectively risk across a spectrum of businesses engaged in multiple facets of blockchain technology. Hence, it’s essentially a streamlined path to investment, allowing investors to harness the sector’s long-term potential while efficiently curbing the complexity and risk. Moreover, it comes with other perks, such as surprisingly attractive dividends, which grew over 500% on a trailing twelve-month basis.
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.
Article printed from InvestorPlace Media, https://investorplace.com/2024/05/the-3-best-blockchain-stocks-to-buy-in-may-2024/.
Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq
quotes delayed at least 15 minutes, all others at least 20 minutes.
Copyright ©
2024 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
