With the benchmark cryptocurrency recently setting an all-time high, it was inevitable that interest in space holistically skyrocketed, thus boding well for so-called blockchain stocks. Basically, these are enterprises that either mine cryptos or facilitate their acquisition. Fundamentally, they offer an alternative path to decentralized riches.
But what on Earth would you want to buy blockchain stocks when you can buy cryptos instead? As with anything in life, there are pros and cons. Regarding the risks of crypto-related enterprises, they command significant risks. Also, stuff could go terribly wrong over the weekend – and you wouldn’t be able to respond until the market opens.
However, there are also positives. Mainly, blockchain stocks avoid the administrative vulnerabilities that can drive crypto investors mad, like losing passwords or worse yet, a cyber breach. Stated differently, you have certain mainline protections when you go with publicly traded securities over cryptos themselves.
With that, below are intriguing blockchain stocks to put on your watch list.
Marathon Digital (MARA)
When it comes to blockchain stocks like Marathon Digital (NASDAQ:MARA), there is a headwind to consider. With the upcoming halving event for the benchmark crypto, the reward tokens for verifying transactional data in the blockchain becomes halved. Theoretically, that puts pressure on the virtual currency in question.
However, we must also consider the intense enthusiasm for the crypto market. Today, it’s no longer hardcore advocates that are participating in the market. Instead, we have major institutional players thanks to the approval of sector-related exchange-traded funds. Not only that, government agencies are discussing how to manage this innovation. Accessibility and acceptability have skyrocketed.
So long as interest remains strong in crypto, Marathon should have a future. Yes, it’s wildly volatile but it’s also intriguing for speculators. For those who are concerned about longer-term wildness, you may want to consider call options that expire when the halving event should take place, estimated to be April 19.
Cipher Mining (CIFR)
One of the newer opportunities among blockchain stocks, Cipher Mining (NASDAQ:CIFR) entered into the fray during the heyday of 2021. However, when crypto sentiment began decelerating sharply in that year’s final months, so too did CIFR stock. Even with all the recent hoopla surrounding the decentralized ecosystem, CIFR still lost almost 65% of equity value since its public market debut.
You’ll want to keep this in mind before you go too deeply with blockchain stocks. Still, with the benchmark crypto hitting a new record and mainstream awareness rising, now may be an intriguing time to consider CIFR. For the current fiscal year, analysts believe revenue can reach $152.7 million. If so, that would mean a 20.4% lift from last year’s tally of $126.84 million.
Looking out to 2025, sales may fly up to $250.44 million. If so, that would be a 64% gain from 2024’s projected revenue.
Enticingly, the consensus view of Cipher stands as a unanimous strong buy. The average price target of $5.88 implies almost 68% upside potential.
Coinbase (COIN)
Technically, Coinbase (NASDAQ:COIN) isn’t exactly a pure-play name among blockchain stocks. Instead, it’s primarily known as a crypto exchange and wallet services. However, the platform is so deeply ingrained in the decentralized ecosystem – basically, it provides a gateway for people to easily participate in the sector – that I’d be remiss not to mention it.
Since the start of the year, COIN stock has gained almost 64% of equity value. That’s hardly surprising given the intense enthusiasm over everything crypto-related. Further, while the benchmark digital asset may get most of the glory, retail investors will invariably seek out coins and tokens with lower per-unit prices. This dynamic should also benefit Coinbase.
Finally, the company itself – even though it continues to court unwanted attention and even controversy – is a well-known commodity. That’s a huge plus in the wild world of crypto, where accountability measures are similar to what you might on Capitol Hill; as in, absolutely none. So yeah, if you believe in crypto, you should believe in Coinbase.
On the date of publication, Josh Enomoto 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.
