In this article, we will discuss the 13 best blockchain stocks to buy now.
Blockchain is a revolutionary technology that is gaining rapid popularity among various industries. It is a digital ledger of transactions that are stored in a distributed, secure, and immutable manner. It is often referred to as the backbone of cryptocurrencies, but its potential applications go far beyond financial transactions.
Blockchain has the potential to revolutionize the way businesses and organizations operate. By using distributed ledger technology, blockchain enables the secure, transparent, and efficient exchange of data and digital assets. It can also be used to create more efficient, secure, and transparent supply chains, reduce operational costs, and improve data security and privacy. As a result, blockchain technology has the potential to increase efficiency, reduce costs, and create better customer experiences. Additionally, the ability to create immutable records on a distributed ledger could revolutionize the way businesses and organizations manage their records and transactions, leading to increased trust and data integrity. As the technology continues to evolve, its potential applications are growing exponentially.
The Blockchain Industry: An Analysis
The global blockchain technology market was worth $5.92 billion in 2021, according to a report by Grand View Research. The market is expected to be worth $10.02 billion by the end of 2022, and then grow at a compound annual growth rate of 85.9% from 2022 through 2030, reaching a value of $1.43 trillion by the end of the forecasted period. Primary factors influencing this growth include the hefty investments being poured into blockchain technology by both corporations and venture capitalists. Moreover, the rising adoption and acceptance of cryptocurrencies by the world and the legalization of cryptocurrency in certain countries, such as Germany and the United Kingdom, is expected to propel the growth of the global blockchain market.
Some of the top companies operating in the blockchain space and investing heavily in the technology include Mastercard Incorporated (NYSE:MA), Visa Inc. (NYSE:V), and Paypal Holdings, Inc. (NASDAQ:PYPL). The stocks of these companies, among others, are discussed in detail below.
Our Methodology
We studied industry reports and identified major players that are at the forefront of the blockchain industry. We studied their business models, product pipelines, and balance sheets, and then filtered out the stocks with positive market sentiment. Along with each stock, we have mentioned analyst ratings, the hedge fund sentiment, and salient features that make them good investments in the space. These stocks are ranked according to their popularity among institutional investors, from least to most.
Best Blockchain Stocks To Buy Now
13. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 1
HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is a leading Canadian cryptocurrency mining company that owns and operates sustainable and green data centers. The company is well positioned to capitalize on the growth of the cryptocurrency and blockchain industry. HIVE Blockchain Technologies Ltd. is a vertically integrated company and has a significant competitive advantage in the blockchain industry due to its low-cost, secure, and reliable operations. The stock is one of the best blockchain stocks to buy now.
On August 29, Canaccord analyst Joseph Vafi raised his price target on HIVE Blockchain Technologies Ltd. to $7 from $5.50 and maintained a Buy rating on the shares.
At the end of Q3 2022, 1 hedge fund was bullish on HIVE Blockchain Technologies Ltd.. The fund disclosed a position worth $449,000 in the company.
12. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 8
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a digital asset technology company that operates as a full service enterprise-grade hosting and infrastructure provider for digital asset miners and blockchain networks. The company is well-positioned to benefit from the growing demand for digital asset mining and blockchain development, especially as Bitcoin and cryptocurrency become more mainstream, and is placed among the best blockchain stocks to buy now.
On October 7, B. Riley analyst Lucas Pipes revised his price target on Marathon Digital Holdings, Inc. to $8 from $10 and maintained a Neutral rating on the shares.
On December 6, Marathon Digital Holdings, Inc. reported that the company mined 472 Bitcoin in November, bringing its unrestricted Bitcoin holdings to 4,200 BTC, as of November 30. The company also reported $61.7 million of cash in hand, as of November 30.
At the close of Q3 2022, 8 hedge funds were long Marathon Digital Holdings, Inc. and disclosed positions worth $9.19 million in the company.
In addition to Marathon Digital Holdings, Inc., other stocks that are expected to drive outperformance with the growth of the blockchain industry include Mastercard Incorporated, Visa Inc., and Paypal Holdings, Inc..
11. Canaan Inc. (NASDAQ:CAN)
Number of Hedge Fund Holders: 9
Canaan Inc. (NASDAQ:CAN) is a leading provider of high-performance computing solutions for blockchain applications, artificial intelligence, and other emerging technologies. The company has a strong competitive edge in the market, with its Application-Specific Integrated Circuit (ASIC) mining chips, which are more efficient and powerful than the competition. Additionally, its mining machines have a high level of energy efficiency, which makes them more attractive to miners. Canaan Inc. is well-placed to benefit from the growth of the blockchain industry and is included among the best blockchain stocks to buy now.
As of July 6, H.C. Wainwright analyst Kevin Dede has a Buy rating and $5 price target on Canaan Inc..
On October 24, Canaan Inc. launched its next-gen ASIC-based bitcoin mining machine, the A13 series. The model A1346 offers a hash rate of 110 TH/s and a power efficiency of 30J/TH and the model A1366 has a 130TH/s hash rate capacity and a power efficiency of 25J/TH.
At the end of the third quarter of 2022, 9 hedge funds were bullish on Canaan Inc. and held positions worth $8.3 million in the company. This is compared to 8 hedge funds in the previous quarter with stakes worth $8.9 million. As of September 30, Polunin Capital is the top investor in Canaan Inc. and has a stake worth $4.6 million in the company.
10. Riot Blockchain, Inc (NASDAQ:RIOT)
Number of Hedge Fund Holders: 11
Riot Blockchain, Inc. (NASDAQ:RIOT) is a North American Bitcoin mining company that operates through three segments: Bitcoin Mining, Data Center Hosting, and Electrical Products & Engineering. The company is well positioned to benefit from the current macro trend of increasing institutional and retail investment in the cryptocurrency space. The company is focused on enabling the growth of the blockchain sector through its investments, partnerships, and its own mining operations. Riot Blockchain, Inc. is one of the best blockchain stocks to buy now.
On December 5, Riot Blockchain, Inc. announced unaudited production and operations updates for November. The company reportedly mined 521 Bitcoin in November, up 12% year over year from 466 Bitcoin. The company’s hash rate capacity, as of November 30, was reported at 7.7 EH/s.
On November 23, H.C. Wainwright analyst Mike Colonnese started coverage of Riot Blockchain, Inc. with a Buy rating and a $10 price target.
At the end of Q3 2022, 11 hedge funds disclosed ownership of stakes in Riot Blockchain, Inc.. The total value of these stakes amounted to $29.36 million, up from $13.63 million in the previous quarter with 13 positions. As of September 30, Balyasny Asset Management is the top investor in the company and has a position worth $8.80 million.
9. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 13
Applied Digital Corporation (NASDAQ:APLD) is a leading developer and operator of next-gen datacenters. The company provides digital infrastructure solutions for high performance computing. On November 21, Applied Digital Corporation launched an independent fund for acquiring depressed cryptocurrency assets. The stock is included in our list of the best blockchain stocks to buy now.
On October 12, Lake Street analyst Rob Brown updated his price target on Applied Digital Corporation to $6 from $10 and maintained a Buy rating on the shares.
At the end of Q3 2022, 13 hedge funds held stakes in Applied Digital Corporation. The total value of these stakes amounted to $21.7 million, up from $12.19 million in the preceding quarter with 12 positions. The hedge fund sentiment for the stock is positive.
8. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 24
In addition to operating one of the most popular stock trading platforms, Robinhood Markets, Inc. (NASDAQ:HOOD) also offers cryptocurrency trading on its platform. The company has captured significant market share in the cryptocurrency industry, and is well-positioned to capitalize on the secular growth trends of the global blockchain industry. Robinhood Markets, Inc. is one of the best blockchain stocks to buy now.
On November 15, Deutsche Bank analyst Brian Bedell revised his price target on Robinhood Markets, Inc. to $9 from $11 and reiterated a Hold rating on the shares. Robinhood Markets, Inc. has been growing its user base and, as of November 30, the company has 12.5 million monthly active users.
At the close of Q3 2022, 24 hedge funds were long Robinhood Markets, Inc. and disclosed positions worth $740 million in the company. This is compared to 26 positions in the previous quarter with stakes worth $617.9 million. As of September 30, ARK Investment Management is the top shareholder in the company and has a position worth $332.39 million.
7. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 28
Coinbase Global, Inc. (NASDAQ:COIN) is an excellent investment opportunity for investors looking to gain exposure to the cryptocurrency and blockchain industry. The company has emerged as a leader in the industry, with a mission to create an open financial system for the world. Coinbase Global, Inc. is well-positioned to benefit from the growth of digital currencies and blockchain technology as the company has already established itself as one of the most trusted and secure digital currency exchanges. Coinbase Global, Inc. is placed high among the best blockchain stocks to buy now.
On November 22, Needham analyst John Todaro updated his price target on Coinbase Global, Inc. to $73 from $89 and maintained a Buy rating on the shares.
At the end of Q3 2022, Coinbase Global, Inc. was spotted on 28 investors’ portfolios that held collective stakes of $976.8 million in the company. Of those, ARK Investment Management was the top investor in the company and disclosed a position worth $497.6 million in the company.
Here is what Miller Value Partners had to say about Coinbase Global, Inc. in its second-quarter 2022 investor letter:
“Coinbase Global Inc. Ordinary Shares (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”
6. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
International Business Machines Corporation (NYSE:IBM) has been making strides in the blockchain space. The company has emerged as a leader in the enterprise blockchain services space and is well-placed to benefit from the tailwinds in the sector. The company’s IBM Blockchain is a distributed ledger technology (DLT) platform that enables businesses to securely store, manage, and share data with other parties. It is based on the open source Hyperledger Fabric framework, which is an open source collaborative effort created to advance cross-industry blockchain technologies. International Business Machines Corporation ranks sixth among the best blockchain stocks to buy now.
Wall Street is bullish on International Business Machines Corporation. This October, Morgan Stanley analyst Erik Woodring revised his price target on International Business Machines Corporation to $152 from $155 and reiterated an Overweight rating on the shares. On October 17, Stifel analyst David Grossman updated his price target on International Business Machines Corporation to $140 from $150 and maintained a Buy rating on the shares.
At the close of the third quarter of 2022, International Business Machines Corporation was a part of 40 investors’ portfolios that disclosed positions worth $868.7 million in the company. As of September 30, Arrowstreet Capital is the largest stockholder in the company and has a stake worth $515.76 million.
Some of the companies that are expected to remain at the forefront of the global blockchain industry for years to come include International Business Machines Corporation, Mastercard Incorporated, Visa Inc., and Paypal Holdings, Inc..
5. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 75
Block, Inc (NYSE:SQ) is one of the leading companies in the blockchain industry. It is a payment processing company that provides mobile payment processing services to customers across the globe. The company has been actively involved in blockchain technology since its inception and has garnered a significant amount of market share over its 13 year history. Block, Inc has integrated its services with numerous blockchain platforms and is one of the few companies that have adopted Bitcoin as a payment method. The company’s Cash App is built on the Bitcoin blockchain network and allows users to purchase and sell Bitcoin. Block, Inc. is one of the best blockchain stocks to buy now.
On November 16, Mizuho analyst Dan Dolev raised his price target on Block, Inc. to $69 from $57 and maintained a Neutral rating on the shares. This December, Deutsche Bank analyst Bryan Keane maintained a Buy rating on Block, Inc..
At the end of Q3 2022, 75 hedge funds were bullish on Block, Inc. and disclosed positions of $3.41 billion in the company. Of those, ARK Investment Management is the dominant shareholder in the company and has stakes worth $505.4 million.
Here is what Baron Funds has to say about Block, Inc. in its second-quarter 2022 investor letter:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
4. Paypal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 126
Payments giant PayPal Holdings, Inc. is playing an increasingly important role in the blockchain industry. The company has been investing heavily in blockchain technology to expand its existing capabilities and provide customers with an even better experience. The company allowed support for cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, back in October 2020. Paypal Holdings, Inc. is well-positioned to capitalize on the growth of the global blockchain industry and adoption of cryptocurrencies and is ranked among the best blockchain stocks to buy now.
This November, DA Davidson analyst Christopher Brendler updated his price target on PayPal Holdings, Inc. to $110 from $120 and maintained a Buy rating on the shares. On December 7, PayPal Holdings, Inc. announced that the company is expanding its cryptocurrency offerings to Luxembourg.
At the close of Q3 2022, 126 hedge funds were long Paypal Holdings, Inc.. The total stakes of these hedge funds amounted to $6.79 billion, up from $5.20 billion in the previous quarter with 97 positions. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the largest shareholder in the company and has a position worth $1.52 billion.
Here is what RiverPark Funds had to say about PayPal Holdings, Inc. in its third-quarter 2022 investor letter:
“PayPal, announced better-than-expected 2Q results, positive guidance (including more than $1.3 billion of 2023 cost savings leading to operating margin expansion), a $15 billion stock repurchase program, and the appointment of Blake Jorgensen as CFO, who was previously the well-regarded CFO at Electronic Arts. The company reported 9% revenue growth, in-line with guidance, and $0.93 EPS, exceeding guidance due to robust operating leverage. Management narrowed its 2022 revenue guidance from 11%-13% growth to about 11% growth due to the macro environment but raised its EPS guidance due to greater operating margin leverage and share buybacks. The stock also reacted to the news that activist investor Elliott Management had taken a stake in the company. PYPL operates at significantly lower margins than its payment competitors Visa and Mastercard, and sources suggest that Elliott intends, among other things, to push for the company to improve its margins and drive higher cash flow growth in the near term.
PayPal provides direct exposure to the secular growth in ecommerce-driven digital payments as it is the most accepted digital wallet on-line. More than 3/4 of the 1,500 largest online retailers across North America and Europe accept PayPal, which is almost triple the acceptance of Apple Pay, the number two digital wallet. PayPal is also a key beneficiary of the current dramatic shift in consumer buying habits brought on by the pandemic, as well as the relatively newer consumer-to-consumer payment trends through its Venmo peer-to-peer (P2P) payment service. With a 2Q non-GAAP operating margin of 19%, PYPL also has significant margin expansion potential given that competitors Adyen, Visa and Mastercard have 50%-65% operating margins. We believe the combination of the secular growth of eCommerce and P2P payments, along with expanding operating leverage and the strategic use of the company’s significant and growing cash balance should fuel a mid-20% earnings growth rate over the next five years. This, to us, presents an excellent risk/reward profile given that PYPL trades at a modest premium to the market multiple and a 6% 2023 FCF yield.”
3. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 146
Mastercard Incorporated is one of the leading companies in the blockchain industry. The company has been actively involved in the development of blockchain technology since October 2017, when it launched its native blockchain platform. The platform is a scalable, secure, and cost-efficient blockchain network that enables businesses to securely store and manage digital assets. On November 3, the company announced that it has added 7 blockchain startups to the Mastercard Start Path program, the company’s fintech accelerator program. Mastercard Incorporated is actively exploring the potential of blockchain technology and is taking steps to ensure that it is well positioned to take advantage of this emerging technology. The stock ranks high among the best blockchain stocks to buy now.
On November 1, Mizuho analyst Dan Dolev updated his price target on Mastercard Incorporated to $380 from $385 and maintained a Buy rating on the shares.
At the end of the third quarter of 2022, Mastercard Incorporated was a part of 146 investors’ portfolios that held collective positions worth $13.88 billion in the company. Of those, Akre Capital Management is the top shareholder in the company and has stakes worth $1.67 billion.
Here is what Baron Funds had to say about Mastercard Incorporated in its third-quarter 2022 investor letter:
“Shares of global payment network Mastercard Incorporated (NYSE:MA) fell despite reporting financial results that exceeded Street estimates. Revenue grew 21% and EPS grew 32% in the most recent reported quarter, and strong payment activity has persisted despite high inflation. Share price weakness represented a reversal of outperformance earlier this year and was likely driven by adverse foreign exchange movements and concerns about a potential weakening of consumer spending. We retain conviction due to Mastercard’s long runway for growth and significant competitive advantages.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. is another payments giant that has been actively involved in the development and implementation of blockchain-based solutions for its customers. The company has partnered with several blockchain-focused companies in order to develop new technologies and applications and has also launched its own private blockchain network, Visa B2B Connect. This platform is designed to facilitate cross border payments for businesses.Visa Inc. is a major player in the blockchain industry and is actively exploring how it can leverage the technology to improve its services and products. The stock is placed on our list of the best blockchain stocks to buy now.
On December 2, Wells Fargo analyst Donald Fandetti raised his price target on Visa Inc. to $250 from $225 and reiterated an Overweight rating on the shares.
At the close of the third quarter of 2022, 165 hedge funds held stakes in Visa Inc.. The total value of these stakes amounted to $22.4 billion. As of September 30, TCI Fund Management is the top investor in the company and has a position worth $3.54 billion.
Here is what Lakehouse Capital had to say about Visa Inc. in its third-quarter 2022 investor letter:
“Visa Inc. (NYSE:V) continued its long run of steady growth with both net revenue and earnings per share increasing by 19% year-over-year. The company processed 61.9 billion transactions during the quarter, which drove US$2.9 trillion in total payments volume. The return of travel-related spend post-pandemic continues to be a tailwind for the business and it was pleasing to see cross-border volume growth maintain its recent momentum, up 49% year-over-year, excluding intra-Europe. Management also provided some positive commentary on the macro environment, which was reassuring, especially given the heightened recessionary fears at present. They highlighted stable trends that were relatively broad-based and emphasised stability in e-commerce and a general shift in spending away from goods toward services and experiences. Big picture, we remain long-term holders and believe that the combination of an attractive industry structure and the ongoing secular shift towards digital payments provides a strong foundation that will enable Visa to continue growing at attractive rates for many years to come.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) is quickly becoming a leader and gaining traction in the blockchain industry. The company has been investing heavily in blockchain technology, and has already launched its own blockchain service, the Amazon Managed Blockchain. The company’s cloud business, Amazon Web Services (AWS), has been actively engaging in blockchain initiatives, such as the launch of the AWS Blockchain Templates. Amazon.com, Inc. is one of the best blockchain stocks to buy now.
On December 1, Cowen analyst John Blackledge raised his price target on Amazon.com, Inc. to $160 from $150 and maintained an Outperform rating on the shares.
At the end of Q3 2022, Amazon.com, Inc. was spotted on 269 investors’ portfolios that held collective stakes of $34.6 billion in the company. This is compared to 252 positions in the previous quarter with stakes worth $30.07 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the dominant shareholder in the company and has stakes worth $5.6 billion.
Here is what L1 Capital International had to say about Amazon.com, Inc. in its third-quarter 2022 investor letter:
“Quarterly results (mostly reported in late July and early August) were generally in line with our expectations. Solid company execution was subsequently swamped by increases in interest rates and hawkish Federal Reserve commentary. During the quarter, only one company (Amazon.com) made a positive contribution of more than 0.5% in Australian dollars. Amazon.com, Inc.(NASDAQ:AMZN) was the largest negative contributor in the June 2022 quarter, with the share price recovering modestly but it is still well below our view of fair value. No company detracted more than 0.5% from the Fund’s performance in Australian dollars, although the depreciation of the Australian dollar obfuscates some meaningful share price falls in U.S. dollars
We did not participate in the ‘unprofitable tech bubble’, but our portfolio does have significant exposure to some of the largest, highly profitable and incredibly financially strong technology companies which dominate their markets and have outstanding medium to long term growth prospects – including Alphabet, Amazon, Intuit and Microsoft. The share price of these companies has now fallen to levels we now consider provide very attractive valuations for long term investors.”
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This article is originally published at Insider Monkey.
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