There are some blockchain stocks on sale amid Bitcoin (BTC-USD) going on a historic bull run. I’ve said this before, but I believe that this year will be Bitcoin’s best. All of the pieces are in play, with increasing institutional adoption, favorable macroeconomic conditions and a looming supply squeeze as the next halving event approaches.
While Bitcoin itself isn’t a stock that can be traded on major exchanges, there are several blockchain stocks on sale deriving significant revenue from crypto and blockchain technologies.
As the crypto market heats up, these stocks could benefit from increased interest and adoption in the space. However, it’s crucial to understand that many of these companies are still highly speculative investments tied to the volatile crypto market.
The prices of these stocks may increase as valuations are closely tied to the movement of Bitcoin. If my thesis plays out, then these firms could be significantly undervalued to where they will be six months from now.
Coinbase (COIN)
Coinbase (NASDAQ:COIN) is deeply intertwined with the blockchain and cryptocurrency world as one of the leading exchanges in the U.S.
In 2023, COIN exceeded expectations in the third quarter, with sales reaching $674 million, attributed largely to a surge in subscription and services revenue. This financial achievement came alongside a significant reduction in net loss to $2.3 million.
The company sees institutional investment continuing to focus primarily on Bitcoin, driven by a backlog of demand from traditional investors. The backdrop for the market is also positive, such as potential Federal Reserve rate cuts and the development of crypto regulations, which could yield significant benefits.
COIN is the second-best alternative that U.S. investors have to invest directly in Bitcoin. I also believe that it could be significantly undervalued. This year’s trading revenues could reach record-breaking levels when it reports its quarterly and annual reports this year.
Marathon Digital (MARA)
Specializing in Bitcoin mining, Marathon Digital (NASDAQ:MARA) operations and growth are closely tied to the blockchain ecosystem.
I think that MARA could be one of the best Bitcoin mining companies for investors to consider. Also, despite the expected reduced mining profits from the upcoming halving event in April, it could be on a trajectory to increase its valuation.
The reason is that there are some key developments on the horizon for the company. Mara is also eying international expansion.
Analysts predict MARA is nearing a financial turning point. It is expected to shift from a final loss in 2023 to projected positive profits of $61 million in 2024. This optimistic financial outlook is underpinned by an estimated average annual growth rate of 119%.
Central to MARA’s strategic outlook for 2024 is its geographical diversification and expansion into new markets. Notably, it is looking to Africa and other regions such as Paraguay and the United Arab Emirates.
Riot Platforms (RIOT)
Financially, Riot Platforms (NASDAQ:RIOT) reported a substantial beat in its Q4 2023 earnings. It posted 48 cents earnings per share (EPS), significantly above the expected 29 cents per share loss. This performance was underpinned by $78.83 million in revenue for the quarter, although slightly below analyst projections of $84.94 million
What makes it a strong buy is that the company has not only increased its revenue projections for the next year but also anticipates improvement in its earnings scenario. Analysts forecast significant revenue growth in 2024. That sets a strong foundation for the company’s future growth and operational expansion.
For the same reasons the other blockchain stocks on this list are undervalued, RIOT is too. Many analysts rate it as one of the strongest stocks for investors to consider for their portfolios. I agree with that sentiment.
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.
