In this article, we will look at 5 best blockchain stocks to buy in 2022. If you want to read about blockchain technology and how it is transforming various industries other than the fintech industry, you can go to 10 Best Blockchain Stocks To Buy in 2022.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
Moving on, we see JPMorgan Chase & Co. (NYSE:JPM) making note-worthy progress and contributions in the blockchain industry. In 2018, the company launched the Interbank Information Network, the company’s first scalable peer-to-peer (P2P) blockchain network to make cross-border transactions faster and more secure. In 2019, JPMorgan Chase & Co. (NYSE:JPM) launched the JPM Coin, its digital alternative coin designed to replicate fiat currencies to facilitate instantaneous payments and reduce settlement times. Moreover, this February, the company announced its plans to invest in TRM Labs, a pioneering blockchain analysis company. JPMorgan Chase & Co. (NYSE:JPM) is making unparalleled efforts in the space, which makes it an attractive blockchain stock to buy in 2022.
On April 13, JPMorgan Chase & Co. (NYSE:JPM) released market-beating earnings for the fiscal first quarter of 2022. The company reported earnings per share of $2.63 and generated revenues of $30.72 billion, beating revenue estimates by over $318 million. This April, Piper Sandler analyst Jeffery Harte raised his price target on JPMorgan to $170 from $165 and reiterated an Overweight rating on the shares following the company’s strong earnings results for FQ1 2022.
JPMorgan Chase & Co. (NYSE:JPM) was present on 107 hedge fund portfolios at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $6.58 billion, up from $5.63 billion in Q3 2021 with 101 positions. The hedge fund sentiment for JPMorgan Chase & Co. (NYSE:JPM) is positive.
Ken Fisher’s Fisher Asset Management is reported to be the largest shareholder in JPMorgan Chase & Co. (NYSE:JPM) as of the end of last December. The fund’s stakes in the company were more than $1.17 billion, and the stock covers 0.65% of Fisher Asset Management’s investment portfolio.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2021 investor letter:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) designs professional graphic processing units (GPUs) which are key components for running blockchain applications. The company’s GeForce RTX 3090 is currently the fastest GPU on the market serving both gaming and mining purposes. NVIDIA Corporation (NASDAQ:NVDA) also manufactured the NVIDIA CMP XH, the company’s dedicated GPU for industrial cryptocurrency mining. Having the most powerful hardware in its ammunition places NVIDIA Corporation (NASDAQ:NVDA) among the 5 best blockchain stocks to buy now.
At the close of Q4 2021, Insider Monkey found 110 hedge funds long NVIDIA Corporation (NASDAQ:NVDA) having collective stakes of $10.49 billion in the stock. This is compared to 83 positions in the third quarter of 2021 with stakes worth $10.05 billion.
As of December 31, 2021, Fisher Asset Management is the largest shareholder in NVIDIA Corporation (NASDAQ:NVDA) owning over 5 million shares of stock. This equates to a stake value of $1.5 billion, which represents 0.84% of Ken Fisher’s hedge fund portfolio.
ClearBridge Investments explained why investors should consider investing in NVIDIA Corporation (NASDAQ:NVDA) in its first-quarter 2021 investor letter. Here is what the firm said:
“Gaming is an attractive end market within the media/technology sector with strong growth and a long runway, particularly in mobile gaming. Unity’s platform provides an engine and toolkit for development and monetization of games, e-commerce and industrial applications, adding to our industry exposure, which also includes Nvidia (NASDAQ:NVDA) in graphic processing chips.”
3. Paypal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 110
Paypal Holdings, Inc. (NASDAQ:PYPL) made its first move in the blockchain industry back in 2019 when it invested in Cambridge Blockchain, a pioneer in blockchain-based enterprise solutions, to explore for the potential of blockchain technology. Then in 2021, the company led a $300 million investment round with Visa Inc. (NYSE:V) for Blockchain Capital, a cryptocurrency venture capital firm. The company is reportedly working on its very own stable coin as an alternative for fiat currencies and has added functionalities to its platform which allows PayPal account holders to use cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, to purchase goods and services. The company is relatively new to the blockchain scene but is ambitious and poised to grow, making it rank among the top 3 blockchain stocks to buy in 2022.
According to Insider Monkey’s database, 110 elite hedge funds held long positions in Paypal Holdings, Inc. (NASDAQ:PYPL) at the end of the fourth quarter of 2021. These funds had collective stakes of $9.93 billion in the company. Of these, the majority stakes were attributed to Fisher Asset Management which was the largest stakeholder in the company owning over 14.4 million shares of the stock. As of December 31, 2021, Fisher Asset Management’s stakes in Paypal Holdings, Inc. (NASDAQ:PYPL) are valued at $2.72 billion.
Wedgewood Partners, an investment management firm, published its first-quarter 2022 investor letter in which it mentioned Paypal Holdings, Inc. (NADAQ:PYPL). Here is what the firm said:
“PayPal also detracted from performance during the quarter as investors panicked in the face of the well-telegraphed run-off of eBay’s revenues. We have been aware of the runoff of eBay’s revenues since at least the third quarter of 2017.2 Although markets are supposedly efficient, maybe markets are only as efficient as long as the same shareholders are in the stock. When a shareholder base turns over several, if not dozens, of times over a 5-year time frame, perhaps old news periodically becomes “new” to a market riddled with transient shareholders. In any case, we increased our weightings in the stock for the first time since 2018 as the only thing “new”to us was the highly attractive multiple for a competitively wellpositioned business in the e-commerce industry.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is becoming an early adopter of blockchain and cryptocurrencies, going head-to-head with its rival Mastercard Incorporated (NYSE:MA). Even though the company is not moving as fast as its peers, Visa Inc. (NYSE:V) is constantly innovating to make cryptocurrencies unlock their full potential to deliver more value and access to the crypto ecosystem. The company has added crypto APIs to its offerings to facilitate trading and possession of digital assets. The stock is on an upwards trajectory and is a runner-up for the best blockchain stocks to buy in 2022.
This January, Visa Inc. (NYSE:V) released earnings for the fiscal first quarter of 2021. The company registered an EPS of $1.81 and beat estimates by $0.11. Moreover, the company saw its quarterly revenues grow by 24.13% year over year, coming to $7.06 billion and outperforming market consensus by $265.07 million.
By the end of the fourth quarter of 2021, 142 hedge funds were long Visa Inc. (NYSE:V) having collective stakes of $29.29 billion. This is compared to 143 positions in the previous quarter with stakes of $26.16 billion. As of the end of last December, TCI Fund Management is the leading stakeholder in the company having stakes of more than $5 billion which cover 11.26% of the fund’s Q4 2021 investment portfolio.
Wedgewood Partners holds an optimistic outlook on Visa Inc. (NYSE:V) according to the firm’s first-quarter 2022 investor letter. Here is what the firm said:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American reengaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparallel scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 144
Topping our rankings of the best blockchain stocks to buy in 2022, Mastercard Incorporated (NYSE:MA) has appreciated by 1.99% over the past six months as of April 18, 2022. In 2017, the company launched its own blockchain API to facilitate secure and non-card business-to-business (B2B) payments and trade finance transactions. Then in 2019, Mastercard Incorporated (NYSE:MA) announced its collaboration with R3, a leading blockchain solutions provider, to make a blockchain-powered cross-border payments platform to facilitate faster transactions across the globe. As of 2021, Mastercard Incorporated (NYSE:MA) boasts of having filed over 89 patents for blockchain technology, with more than 280 pending blockchain applications.
Moreover, this January, Mastercard Incorporated (NYSE:MA) announced a collaboration with Coinbase Global, Inc. (NASDAQ:COIN) to revolutionize NFT transactions. Individuals can now make NFT purchases on Coinbase Global, Inc. (NASDAQ:COIN) using their Mastercard credit and debit cards. Mastercard Incorporated (NYSE:MA) is making its way in the blockchain industry and exhibits massive upside potential. This April, Tigress Financial analyst Ivan Feinseth raised his price target on MasterCard Incorporated (NYSE:MA) to $472 from $460 and maintained a Strong Buy rating on the shares.
Insider Monkey found 144 hedge funds bullish on Mastercard Incorporated (NYSE:MA) as the fourth quarter of 2021 ended. These funds held collective stakes of more than $17.24 billion in the company. Of these funds, Akre Capital Management was the most prominent shareholder in Mastercard Incorporated (NYSE:MA) having over 5.8 million shares of the stock. This equates to stakes of $2.1 billion in the company, which covers 11.75% of Akre Capital Management’s Q4 2021 investment portfolio.
VGI Partners, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned Mastercard Incorporated (NYSE:MA). Here is what the firm had to say:
“Mastercard has been a core constituent of the VGI Partners global strategy since 2009. Mastercard is a global payments processor and in an effective duopoly with Visa. The industry benefits from a strong secular trend toward electronic payments over cash and cheques and the COVID pandemic has accelerated this shift.
Mastercard’s share price increased +1% in calendar 2021 despite more than 25% earnings growth. This was due to Mastercard’s market multiple de-rating due to short-term concerns about cross-border
volumes and long-term concerns about disintermediation from fintechs such as PayPal and Square (see the chart below showing Mastercard’s EV/EBITDA multiple during 2021 de-rating from >30x to ~26x).Whilst the full recovery in cross-border travel has been delayed by the onset of Delta and Omicron, we believe there is significant pent-up demand for travel and that cross-border transaction volumes can exceed 2019 levels by 2023.
Interchange fees have long been a point of contention between the payment processors and merchants so the news that Amazon UK would no longer accept Visa credit cards rekindled fears that there would be a race to the bottom in merchant discount rates. Amazon and Visa have since come to a resolution and we think it is highly unlikely that other merchants will take a similar step. Nevertheless, we are closely monitoring the situation for further developments…” (Click here to see the full text)
You can also take a look at 10 Best Blockchain Stocks to Buy and 10 Best Cryptocurrency Startups to Watch.
