In unearthing gems from the realm of blockchain, savvy investors will have taken notice of undervalued blockchain stocks. These equities have been making waves, having rebounded impressively over the last six months in line with the spectacular resurgence of the cryptocurrency sector. As Bitcoin (BTC-USD) registers a year-to-date price surge exceeding the 80% mark, the entire digital asset ecosystem is riding high.
The stocks of crypto miners and blockchain companies have become rockstars this year, effectively outshining their traditional tech counterparts. Despite their impressive rally, these high performers still carry bargain price tags, offering investors an irresistible long-term proposition. As we anticipate further gains, this seems like an opportune moment to consider adding the best blockchain stocks to buy into your portfolio.
Global X Blockchain ETF (BKCH)
Wagering on the Global X Blockchain ETF (NASDAQ:BKCH) provides a panoramic view of the blockchain sphere. It could be a beacon for investors seeking exposure to a broad range of publicly listed blockchain companies. Consequently, the stock has delivered a mind-boggling 174% bump in 2023 alone. Moreover, with the crypto sphere heating up, this robust return could be the tip of the iceberg.
The BKCH ETF has holdings in various blockchain stocks, including Hut 8 (NASDAQ:HUT), Coinbase (NASDAQ:COIN), Marathon (NASDAQ:MARA), and 23 other stocks in the niche. This variety provides a safety net for investors, softening the risks inherent in single stock ownership. Moreover, its 0.50% expense ratio makes it a reasonable choice, further sweetened by a recent 19-cent per share payout annually. Most individual blockchain stocks don’t pay dividends.
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) is a leading cryptocurrency miner, which continues to shine brightly in the stock market this year. Despite a 21% sequential drop in June, it netted 979 BTC, catapulting its year-on-year production by a stratospheric 599%. By the year’s conclusion, Marathon was sitting on a hefty treasure chest of 12,538 BTC, translating to an approximate value of $382 million.
This financial robustness, along with an additional $114 million in unrestricted cash and cash equivalents, arms Marathon Digital with the resources to scale up its BTC mining operations. Moreover, an optimistic outlook for crypto prices in the second half of this year adds another feather to its cap. Yet, despite the stock’s spectacular journey so far, it trails 18% behind its 52-week high, indicating room for growth amidst the broader surge in crypto mining stocks.
MasterCard (MA)
The blockchain landscape is pulsating with promise, and businesses such as MasterCard (NYSE:MA) are astutely harnessing its potential. As a card processing juggernaut, MasterCard’s fortunes are essentially linked to the burgeoning blockchain ecosystem, which holds transformative prospects for payment processors.
MasterCard isn’t just dipping its toes in the blockchain sphere; it’s taking a deep dive. With over 30 patents already lodged related to blockchain, the firm’s powerful resources and teams are crafting innovative solutions. Its long-term vision sees blockchain as the cornerstone of critical security, underscoring the allure of blockchain stocks.
The inherent safety of a distributed, undisputable ledger — as opposed to a centralized system — adds a layer of assurance for payment processors. Additionally, robust credit card spending bolsters 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.
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.
