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Rags to Riches: 3 Blockchain Stocks That Could Make Early Investors Rich
Build your portfolio with blockchain stocks for early investors, focusing on companies with strong fundamentals
Blockchain stocks for early investors are gaining traction.
With the crypto space evolving rapidly, the spotlight is on buying the best blockchain stocks to expand your investment portfolio. Additionally, opting for blockchain stocks over direct cryptocurrency investments helps you avoid the risks of owning cryptocurrencies directly.
While the prospect of engaging with blockchain technology is enticing, the challenge lies in choosing stocks that offer a blend of stability and healthy upside potential. By doing so, investors can effectively navigate the industry’s notorious pitfalls to identify companies poised for sustained growth.
That said, here are three blockchain stocks for early investors, offering significant exposure to this growing space. These stocks represent exceptional opportunities for those looking to harness the potential of blockchain technology while maintaining a solid investment foundation. 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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To block (London share:m2) is a major player in the consumer finance and payment processing industry. In recent years, it has evolved from its fintech origins to become a moving needle in the blockchain space.
As a result, we’ve seen its operating results skyrocket in line with the cryptocurrency boom over the past year. He comfortably beat analysts’ estimates in each of the four quarters last year, substantially improving his bottom line metrics.
In its first quarter (Q1), Block posted a robust 22% year-over-year (YOY) jump in gross profit, driven by its Cash application AND Square platforms. Cash App Gross Profits Increased 25% to $1.26 billion, while Square’s gross profit rose 19% to $820 million. As a result, the company’s net income quadrupled during the quarter, making it one of the most profitable players in its niche.
Bitcoin (BTC-USD exchange rate) sales were a major contributor to its explosive results, with Block reporting a significant increase in its BTC transactions. It sold $2.2 billion in BTC in the first quarter, a remarkable 25% increase from last year.
Additionally, he announced a change in his approach to investing in Bitcoin. The company will now assign 10% of your monthly gross bitcoin profits to investments in Bitcoin. This strategy will help mitigate investment volatility and optimize long-term growth.
Spark Cleanup (CLSK)
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Clean sparkle (NASDAQ:CLSK) is a famous Bitcoin miner based in Nevada that has cleverly jumped on the cryptocurrency boom. This is evidenced by the incredible price performance of CLSK stock, which has rose by 260% in the past year.
With an impressive mining capacity exceeding 17 exahashes per second, CLSK stands out for its commitment to sustainability in cryptocurrency mining. It aligns perfectly with regulatory standards in an industry often criticized for its sustainability footprint.
Furthermore, its financials have been a visual delight lately, posting triple-digit sales growth over the past three quarters. In its second quarter (Q2) report, saw a 163% increase in sales to $111.8 million compared to the prior-year period. Perhaps more impressive was the turnaround in its net income to $126.7 million from a previous loss of $18.5 million.
Additionally, CLSK is channeling its recent gains into strategic market expansion. It announced plans to acquire a major Bitcoin mining facility in Wyoming, increasing its capacity by over 23%. It also announced it was developing a vertically integrated bitcoin mining player, GRID Infrastructure (OTCPK)this week to further expand its position in the cryptocurrency sector.
Digital Marathon (MARA)
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Digital Marathon (NASDAQ:MARA) is another giant in the North American cryptocurrency mining scene. It is one of the OG players in the niche, having gained over 625% in value in the last five years. Furthermore, it is up 47% in the last year alone, but has lost most of those gains in the last six months.
However, MARA remains in great shape to continue to push forward and continue to expand its market share in its niche. It recently reported its impressive Q1 results, where sales increased by 223% to $165.2 million compared to the same period last year. It also reported a staggering net profit of $337.2 millionshowing an impressive 184% jump on a year-on-year basis.
MARA continues to grow its operations. It has increased its BTC output to 2,811 coins, up 28% from last year, while also increasing its hash rate by 142% to a mighty 27.8 exahashes per second. So, with such strategic progress and stellar operating numbers, it’s a great time to grab MARA stock on the dip. Furthermore, in a recent article by InvestorPlace’s Ian Cooper, MARA note historic rise linked to Bitcoin halving events, such as that of May 11, 2020.
As of the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guidelines
Muslim Farooque is a passionate investor and an optimist at heart. A longtime gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s degree in applied accounting from Oxford Brookes University.