Blockchain stocks for early investors are gaining traction.
With the crypto space evolving rapidly, the spotlight is on buying the best blockchain stocks to broaden your investment portfolio. Additionally, opting for blockchain stocks over direct crypto investments helps sidestep the risks of owning cryptos directly.
Though the prospect of engaging with blockchain technology is enticing, the challenge lies in picking stocks that offer a blend of stability and healthy upside potential. In doing so, investors can effectively navigate the sector’s notorious pitfalls to pinpoint companies poised for sustained growth.
That said, here are three blockchain stocks for early investors, offering significant exposure to this burgeoning space. These stocks are standout opportunities for those looking to tap into the potential of blockchain technology while maintaining a strong investment footing. Moreover, these companies boast superb fundamentals and continue to grow in line with the broader market.
Blockchain Stocks for Early Investors: Block (SQ)
Block (NYSE:SQ) is one of the top plays in consumer finance and payment processing. In recent years, it has evolved from its fintech origins to become a needle-mover in the blockchain space.
Consequently, we’ve seen its operating results soar in line with the crypto boom in the past year. It comfortably beat analyst top-line estimates in each of the four quarters last year while substantially improving its bottom-line metrics.
In its first-quarter (Q1), Block posted a robust 22% year-over-year (YOY) gross profit jump, led by its Cash App and Square platforms. Cash App’s gross profits surged by 25% to $1.26 billion, while Square’s gross profits climbed 19% to $820 million. Consequently, the firm’s net income quadrupled during the quarter, making it one of the most profitable players in its niche.
Bitcoin (BTC-USD) sales were a key contributor to its blow-out results, with Block reporting a significant uptick in its BTC transactions. It sold $2.2 billion in BTC in Q1, a sizeable 25% increase from last year.
Moreover, it announced a shift in its Bitcoin investment approach. The firm will now allocate 10% of monthly bitcoin gross profits to Bitcoin investments. This strategy will help mitigate investment volatility and optimize long-term growth.
CleanSpark (CLSK)
CleanSpark (NASDAQ:CLSK) is a popular Nevada-based Bitcoin miner that has skillfully pounced on the crypto boom. This is shown by the incredible price action in CLSK stock, which has soared upwards of 260% in the past year.
With an impressive mining capacity exceeding 17 exahash per second, CLSK stands out for its commitment to sustainability in crypto mining. It aligns seamlessly with regulatory standards in a sector often criticized for its sustainability footprint.
Moreover, its financials have been a visual treat lately, posting triple-digit growth in sales in the past three quarters. In its second-quarter (Q2) report, it posted a 163% increase in sales to $111.8 million from the prior-year period. Perhaps more impressive was the turnaround in its net income to $126.7 million from a previous loss of $18.5 million.
Furthermore, CLSK is channeling its recent earnings into strategic market expansion. It announced plans to acquire a major Bitcoin mining infrastructure in Wyoming, enhancing its capacity by over 23%. Also, it announced it was developing a vertically integrated bitcoin mining player, GRIID Infrastructure (OTCPK), this week to broaden its position in the crypto sector further.
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) is another giant in the North American crypto mining scene. It’s one of the OG players in the niche, having gained over 625% in value in the past five years. Moreover, it has surged 47% in the past year alone but has shed most of those gains in the past six months.
Nevertheless, MARA remains in excellent shape to keep pushing forward and continue expanding its market share in its niche. It recently reported its smashing Q1 results, where sales surged 223% to $165.2 million from the prior-year period. Additionally, it reported a staggering net income of $337.2 million, showcasing an impressive 184% jump YOY.
MARA continues growing its operations. It boosted BTC output to 2,811 coins, up 28% from last year, while raising its hash rate by 142% to a powerful 27.8 exahashes per second. Hence, with such strategic advancements and stellar operational figures, it’s an excellent time to scoop up MARA stock on the dip. Also, in a recent article by InvestorPlace’s Ian Cooper, he notes MARA’s historical uptick around Bitcoin halving events, like the one on May 11, 2020.
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