When delving into the world of blockchain treasures, astute investors cannot overlook the undervalued blockchain stocks that have been catching attention. These equities have been making impressive strides in the last six months, closely following the remarkable resurgence of the cryptocurrency sector. Bitcoin (BTC-USD) has been at the forefront, registering a year-to-date surge of over 80%, pushing the entire digital asset ecosystem to new heights.
In contrast to their traditional tech counterparts, the stocks of crypto miners and blockchain companies have emerged as stars this year. Their impressive rally notwithstanding, these high-performers still present an enticing long-term opportunity, offered at bargain prices, hard for investors to resist. Considering the potential for further gains, now seems like an opportune moment to explore the best blockchain stocks to incorporate into your investment portfolio.
Global X Blockchain ETF (BKCH)
Investing in the Global X Blockchain ETF (NASDAQ:BKCH) offers a panoramic view of the blockchain sphere. It serves as a guiding light for investors seeking exposure to a diverse array of publicly listed blockchain companies. The stock has seen a staggering 174% increase in 2023 alone, and with the crypto sphere heating up, this remarkable growth might just be the beginning.
The BKCH ETF comprises holdings in various blockchain stocks, including Hut 8 (NASDAQ:HUT), Coinbase (NASDAQ:COIN), Marathon (NASDAQ:MARA), and 23 other stocks in this niche. This diversification provides a safety net, mitigating the risks associated with owning a single stock. Furthermore, with a reasonable 0.50% expense ratio and a recent 19-cent per share payout annually, it becomes an even more appealing choice, particularly since most individual blockchain stocks don’t offer dividends.
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) stands as a leading cryptocurrency miner, shining brightly in the stock market this year. Despite a 21% sequential drop in June, it managed to acquire 979 BTC, achieving a stratospheric 599% year-on-year production increase. By the end of the year, Marathon had amassed a substantial treasure chest of 12,538 BTC, valued at approximately $382 million.
With this financial strength and an additional $114 million in unrestricted cash and cash equivalents, Marathon Digital is well-equipped to scale up its BTC mining operations. Additionally, an optimistic outlook for crypto prices in the second half of the year adds to its allure. Although the stock lags 18% behind its 52-week high, there’s ample room for growth amidst the broader surge in crypto mining stocks.
MasterCard (MA)
The blockchain landscape pulsates with promise, and companies like MasterCard (NYSE:MA) are astutely harnessing its potential. As a major card processing giant, MasterCard’s fortunes are intricately tied to the burgeoning blockchain ecosystem, which holds transformative prospects for payment processors.
MasterCard isn’t merely testing the waters in the blockchain sphere; it’s taking a deep dive. With over 30 blockchain-related patents already lodged, the company’s powerful resources and teams are crafting innovative solutions. Its long-term vision sees blockchain as the cornerstone of critical security, underscoring the appeal of blockchain stocks.
The inherent safety of a distributed, undisputable ledger, in contrast to a centralized system, provides an added layer of assurance for payment processors. Moreover, robust credit card spending further strengthens MasterCard’s investment case as consumer debt grows. This trend augments MasterCard’s growth prospects, making it an attractive contender for long-term stock investors.
