Blockchain stocks offer growth, decentralization, a glimpse into the future of money, and diversification.
Recently, the attractiveness of blockchain stocks may have become overshadowed by the unexpected rise of AI at the start of the year. The growth of companies like Nvidia (NASDAQ:NVDA) left investors in starstruck awe.
But some forget a crucial detail. Bitcoin (BTC-USD) is still the fastest-growing asset in human history. If you’re still unsure, hedge funds, banks, venture capitalists, and celebrity investors like Cathie Wood are dogpiling into blockchain tech and digital currencies. Follow the money.
The future of blockchain stocks is uncertain. But if you’re already a true believer, then consider buying stock in these three companies.
Greenidge Generation (GREE)
Greenidge Generation (NASDAQ:GREE) operates cryptocurrency data centers and power-generation businesses, as well as cryptocurrency-mining facilities. The company’s stock has plunged by almost 80% in the last year, prompting a 1-for-10 reverse split in mid-May.
GREE stock has a unique competitive advantage. It operates energy-efficient cryptocurrency mining services. This could make it a dark horse in the blockchain space. One of the largest complaints from crypto critics is its energy use. As environmental concerns become increasingly important, companies that can mine cryptocurrencies sustainably will likely gain prominence.
The company reported a larger-than-expected quarterly loss of $0.16 per share. It missed analyst expectations by 60% and marked a decline from last year’s earnings of $0.03 per share. The company also missed revenue estimates. They posted $15.16 million for Q1 2023, an 11.88% shortfall from expectations and a significant drop from $37.66 million a year ago. This short-term weakness is expected from an upstart. Investors should instead focus on its long-term objectives. The fact that it’s attempting to solve a key criticism of the crypto mining industry shows promise for this stock.
Shift4 Payments (FOUR)
Shift4 Payments (NYSE:FOUR) is a payment processing services provider that enables cryptocurrency transactions. With the rise of digital payments and cryptocurrencies, Shift4’s dual focus on payment processing and crypto transactions positions it well for future growth.
The smaller player has seen a 59% increase in payment volume and a 145% rise in net income year over year (YOY), even as the economy slows. With a focus on the hospitality industry and plans for international expansion, Shift4 is not only profitable but also optimistic about future growth.
This makes it one of those blockchain stocks which could be undervalued. Most people pay attention to the marquee names, but overlooked gems like FOUR could lead to significant gains in the future.
Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ:RIOT) is a Bitcoin mining company that supports the energy-efficient, large-scale mining operations in the U.S., This clearly gives it a competitive edge. It’s especially important as regulatory scrutiny increases in other countries. Its recent acquisition of a 300-megawatt facility in Texas could further lower its operational costs.
In Q2 2023, the company reported a total revenue of $76.7 million, driven mainly by a 27% increase in Bitcoin production, despite a 15% drop in Bitcoin prices. The cost to mine Bitcoin decreased, and the company earned $13.5 million in power curtailment credits, up from $5.7 million in the same period last year.
It is financial results like these which may provide some reassurance to risk-averse investors, making it a blockchain stock to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
