Build your portfolio with blockchain stocks for early investors and focus on companies with solid fundamentals
Blockchain stocks for early investors are gaining importance.
As the crypto space is evolving rapidly, the focus is on buying the best blockchain stocks to expand your investment portfolio. Moreover, opting for blockchain stocks over direct crypto investments helps to bypass the risks of owning cryptos directly.
While the prospect of getting involved in blockchain technology is enticing, the challenge is selecting stocks that offer a mix of stability and healthy upside potential. This way, investors can effectively avoid the sector’s notorious pitfalls and find companies poised for sustainable growth.
Still, here are three blockchain stocks for early investors that offer significant exposure to this emerging space. These stocks are excellent opportunities for those looking to capitalize on the potential of blockchain technology while maintaining a solid investment base. Additionally, these companies have excellent fundamentals and continue to grow in line with the broader market.
Blockchain stocks for early investors: Block (SQ)
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block (NYSE:SQ) is one of the top players in consumer finance and payment processing. In recent years, it has evolved from its origins in fintech to become a pioneer in the blockchain space.
As a result, the company’s operating results have soared in line with the crypto boom over the past year. In each of the four quarters last year, the company significantly exceeded analysts’ revenue estimates while also significantly improving its earnings numbers.
In the first quarter (Q1), Block reported a strong 22% increase in gross profit year-on-year, led by CashApp And square Platforms. Cash App’s gross profit increased 25% to $1.26 billion, while Square’s gross profit increased 19% to $820 million. Consequently, the company’s net income quadrupled during the quarter, making it one of the most profitable players in its niche.
Bitcoin (BTC-USD) Sales were a major factor in the staggering results, with Block reporting a significant increase in its BTC transactions. In the first quarter, the company sold $2.2 billion worth of BTC, a notable 25% increase year over year.
In addition, the company announced a change in its Bitcoin investment approach. The company will now allocate 10% of its monthly gross Bitcoin profits to Bitcoin investments. This strategy will help reduce investment volatility and optimize long-term growth.
CleanSpark (CLSK)
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CleanSpark (NASDAQ:CLSK) is a popular Nevada-based Bitcoin miner that has cleverly taken advantage of the crypto boom, as evidenced by the incredible price performance of CLSK stock, which has risen 260% in the past year.
With an impressive mining capacity of over 17 exahash per second, CLSK stands out for its commitment to sustainability in crypto mining, seamlessly meeting regulatory standards in a sector often criticized for its sustainability footprint.
Moreover, financials have been a visual treat of late, with the company posting triple-digit revenue growth over the past three quarters. In its second quarter (Q2) report, it reported a 163% increase in revenue to $111.8 million over the same period last year. Perhaps even more impressive was the turnaround in net income from a previous loss of $18.5 million to $126.7 million.
In addition, CLSK is investing its recent profits in strategic market expansion. The company announced plans to acquire a large Bitcoin mining infrastructure in Wyoming, increasing its capacity by over 23%. Additionally, the company announced this week that it will develop a vertically integrated Bitcoin mining provider, GRIID Infrastructure (OTCPK), to further expand its position in the crypto sector.
Marathon Digital (MARA)
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Marathon Digital (NASDAQ:MARA) is another giant in the North American crypto mining scene. It is one of the OG players in this niche and has gained over 625% in value over the past five years. Moreover, it is up 47% in the last year alone, but has given back most of those gains in the past six months.
Nevertheless, MARA remains in great shape to continue moving forward and continue to grow its market share in its niche. The company recently reported its outstanding first quarter results, where revenues increased 223% to $165.2 million compared to the same period last year. In addition, the company reported an astonishing net profit of $337.2 million, an impressive 184% increase year-over-year.
MARA continues to expand its operations. The company increased BTC issuance to 2,811 coins, up 28% year-on-year, while also increasing its hash rate by 142% to an impressive 27.8 exahashes per second. With such strategic advancements and stellar operational numbers, it is therefore an excellent time to buy MARA shares at the low. In a recent article by InvestorPlace’s Ian Cooper points out MARA’s historical uptrend surrounding Bitcoin halving events such as the one on May 11, 2020.
At the time of publication, Muslim Farooque had no position (either directly or indirectly) 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
