In this article, we discuss the 5 best blockchain stocks to buy. If you want to read our detailed analysis of these companies, go directly to 11 Best Blockchain Stocks to Buy.
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 41
International Business Machines Corporation (NYSE:IBM) is one of the oldest computing companies in the world and it has evolved with the passage of time. While at one time International Business Machines Corporation (NYSE: IBM) also manufactured personal computers, now its sole focus are the enterprise and government segments.
At this front, International Business Machines Corporation (NYSE:IBM) also has a presence in the blockchain sector as it provides companies with a secure platform to process and store their transactions.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 49
Coinbase Global, Inc. (NASDAQ: COIN) is the largest cryptocurrency exchange in the United States and it has a market capitalization of roughly $49 billion. Coinbase Global, Inc. (NASDAQ: COIN) is also known for not having physical offices and operating fully virtually. It offers products for all types of users such as retail and institutional, alongside partnering up with payment companies.
According to JMP Securities, Coinbase Global, Inc. (NASDAQ: COIN) is likely to lead the cryptocurrency economy’s charge into the mainstream markets. Miller Value Partners had the following to say about Coinbase Global, Inc. (NASDAQ: COIN) in a fresh investor letter:
“Coinbase (COIN) became a public company in mid-April following their direct listing at a reference price of $250. Coinbase is a cryptocurrency exchange that allows consumers, financial institutions and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space.
COIN’s 2021 revenues are expected to be 4.5x its 2020 revenues as crypto prices and volumes have exploded. It trades at 30x this year’s earnings, which is quite a steal for a quickly growing company in this market. That’s because the market believes this is peak cycle revenues and earnings, and retail margins will be pressured. That all very well may be true, but we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements it’s position as the leading platform.”
Out of the 873 hedge funds polled by Insider Monkey by the end of the second quarter of this year, 49 had held a stake in Coinbase Global, Inc. (NASDAQ: COIN).
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 57
Honeywell International Inc. (NASDAQ: HON) is one of the oldest American companies in existence, after having survived for a whopping 115 years. It operates in four segments which cover the productivity, building technologies, materials and aerospace markets. Honeywell International Inc. (NASDAQ:HON) also became one of the first companies in the world in 2019 to bring the reliability of blockchain technologies to the aerospace segment, as it used the secure ledger platform to introduce an online marketplace which significantly reduced transaction times in a highly sensitive market which needed secure part authentication.
Honeywell International Inc. (NASDAQ:HON) had 57 institutional holders out of the 873 polled by Insider Monkey at the end of the second quarter.
ClearBridge Investments had the following to say about Honeywell International Inc. (NASDAQ: HON) earlier this year:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
Any mention of the blockchain or cryptocurrency sector without NVIDIA Corporation (NASDAQ:NVDA) would be incomplete as its graphics processing units (GPUs) sit at the very heart of blockchain processing. NVIDIA Corporation (NASDAQ:NVDA) has been at the center of the Bitcoin boom and has seen its fortunes fall and rise in tandem with the cryptocurrency. It offers customized GPUs for miners and its products are some of the most popular in the sector.
Harding Loevner, an investment management firm, had the following to say about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter investor letter:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
1. Square, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 94
Square, Inc. (NYSE:SQ) is one of the world’s leading financial payments processing platforms, which, like other firms, has also started to make profits from the Bitcoin market. Square, Inc. (NYSE: SQ) is also one of the largest companies in terms of revenue earned through Bitcoin, after it revealed that it had managed to bring in $6.2 billion from the cryptocurrency by the end of the first half of this year.
Square, Inc. (NYSE: SQ) is receiving significant attention from hedge funds, as Insider Monkey’s research reveals that 94 out of 873 funds polled by the end of the second quarter this year had held a stake in the company. The largest of these was Ark Investment Management who held shares worth roughly $2 billion.
Cowen analyst George Mihalos upgraded Square, Inc. (NYSE: SQ) to Outperform and increased the price target to $343 explaining that recent acquisitions would cement its position in the market.
You can also take a peek at the Top 10 Energy Sector Stocks for 2021 and 15 Fastest-Growing Fintech Companies.
