For those who think this crypto rally will continue, here are the top three blockchain stocks to consider.
The blockchain bull market has begun. Soaring virtual currency prices, Bitcoin (BTC-USD) into a range of altcoins has reignited investor interest in many digital assets. From the blue-chip blockchain stocks at the center of the crypto movement to the most speculative meme coins, investors of all kinds are turning their attention to assets that many people never expected to pay attention to.
Of course, there are countless ways for investors to gain exposure to this high-growth movement. There is no doubt that investing directly in cryptocurrencies is the easiest way. In addition, you also have the option to purchase his ETFs on a spot and futures basis, made possible by the recent SEC approval. Alternatively, you can choose to invest in cryptocurrency-related stocks.
These three companies could fit the profile of investors looking to get rich quick in this crypto bull market. Please note that investing in these stocks involves higher than average risk. However, for those willing to put up with volatility, these blockchain stocks may be worth seeking out.
Coinbase (COIN)
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investment in coinbase (NASDAQ:coin) provides exposure to the growing crypto market without having to choose individual altcoins. Despite the ongoing SEC dispute, COIN’s stock price has more than tripled over the past year, due in part to the soaring valuation of cryptocurrencies. As the price of cryptocurrencies rose, trading volumes soared. And given that Coinbase derives the majority of its revenue and profits from it, it’s a make or break for this crypto stock.
JMP analyst Devin Ryan reiterated his market outperform rating with a $300 target. Ryan recognized the potential for Coinbase to grow beyond being a cryptocurrency exchange. He noted that the increase in spot trading volumes indicates growth opportunities as the market matures.
In other positive news regarding the centralized cryptocurrency exchange, Coinbase Derivatives, a branch of the US-based exchange Coinbase, is set to launch cash-settled futures trading. dogecoin (Doge-USD), litecoin (LTC-USD) and bitcoin cash (BCH-USDBased on Dogecoin’s enduring popularity, the move is pending approval from the U.S. Commodity Futures Trading Commission.
The self-certification method allows Coinbase Derivatives to continue pending regulatory compliance. Investors could benefit (as long as this surge continues) as more tokens are added to this centralized exchange and the project expands into futures contracts and other derivatives.
Marathon Digital (MARA)
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Marathon Digital Holdings (NASDAQ:Mara) is a leading Bitcoin miner focused on generating revenue by converting vast computing power into Bitcoin. Like other Bitcoin miners, Marathon Digital’s price performance has been volatile in recent years, generally following Bitcoin price movements. However, the recent divergence between the two related to Bitcoin’s upcoming halving has caused serious concerns for some investors.
This is because mining rewards will be halved in about three weeks. So unless Bitcoin quickly doubles in value, Marathon Digital’s entire business model will be disrupted (at least from a margin perspective).
Many Bitcoin bulls believe this to be the case. If such a surge were to materialize, MARA stock could be very attractively valued at current levels. The company strengthened its crypto mining presence with the $87.3 million acquisition of a 200-megawatt Bitcoin mining data center in Garden City, Texas, with an emphasis on sustainability and operational management.
This is the company’s second major expansion in four months, increasing its owned and operated megawatts to 54% and aligns with its strategy to reduce site costs by approximately 20%. If margins improve along with Bitcoin prices, this speculative stock could rise in the coming months. It’s a gamble, but one that many Bitcoin millionaires may be willing to take.
Nvidia (NVDA)
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at this point Nvidia (NASDAQ:NVDA) is truly the king of semiconductor and AI chips, and the company isn’t stopping anywhere in the competition.
Nvidia announced the GB200 chip, which powers the Blackwell B200 GPU, at the GPU Technology Conference. This is a significant performance and efficiency improvement over the H100 AI chip. His B200 GPU with 208 billion transistors delivers 20 petaflops of FP4, allowing him to outperform the H100 by 30x on LLM inference workloads while reducing energy consumption by 25x. On the GPT-3 LLM benchmark, the GB200 runs 7x faster than his H100. Training a model with 1.8 trillion parameters requires only 2,000 Blackwell GPUs and consumes only 4 megawatts of power, compared to 8,000 Hopper GPUs and 15 megawatts.
Such chips could play a key role in driving the future of AI applications, both in the traditional sense and on-chain. Several blockchain-based AI projects are emerging, looking to capitalize on the phenomenal growth in interest in the field.
As the backbone of all AI, by purchasing this stock, investors can gain indirect exposure to the growing AI application development in the world of cryptocurrencies.
On the date of publication, Chris McDonald did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
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