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The 3 Best Blockchain Stocks to Buy in May 2024
Unlock potential with the best blockchain stocks that offer a cushion against cryptocurrency downturns
Investing in blockchain through cryptocurrencies is incredibly risky. Bulls will quickly point this out Bitcoin (BTC-USD) produced a shocking result more than 14,600% in the last decade. However, if we narrow the time horizon to 3 years, BTC has actually underperformed S&P500. Therefore, despite the dazzling returns, BTC’s sharp price swings have left investors confused. Perhaps betting on buying blockchain stocks could be a smarter choice for those aiming to profit from the rapid expansion of the technology.
Blockchain stocks represent companies that have embraced blockchain technology, integrating it into their business operations or developing related products and services. Many of these businesses are not outright plays, which gives them a significant advantage during a cryptocurrency run to the bottom. Additionally, these securities tend to offer a good level of transparency and security, making them significantly more accessible. Additionally, blockchain securities are less encumbered by the regulatory, liquidity and tax complexities typical of the cryptocurrency realm.
CleanSpark (CLSK)
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CleanSpark (NASDAQ:CLSK) is one of the hottest cryptocurrency mining stocks and has outperformed the broader market in several ranges over the past year. After recording an eye-popping increase of 360% last year, CLSK shares are up more than 55% year to date (YTD). In the past six months alone, CLSK is up 292%, underscoring investor enthusiasm for the stock.
The rapid gains in its share price are tied to its impressive revenue expansion over the past year. Revenue growth stands at a high 75% year-over-year (YoY), with future estimates indicating a similar growth trajectory. Additionally, the company reported an unexpected profit in its first quarter (Q1) earnings release. Its GAAP EPS rose to 14 cents compared to the negative estimate of 24 cents. Likewise, net sales jumped to $73.8 million, surpassing $69.8 million and growing by more than 165%. It smashed virtually every consensus high and low estimate, leading to a post-earnings spike of 12%.
Looking ahead, revenue estimates of $109.33 million for the next quarter indicate a 157% increase in sales. Additionally, with another profitable quarter and triple-digit sales growth, I expect CLSK stock to rise again.
Mastercard (MA)
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Despite its impressive financials, including a staggering 100% gross margin, MasterCard (NYSE:BUT) continues to push the boundaries of innovation. It has been one of the most consistent companies in recent years, as demonstrated by 12 consecutive years of dividend growth, among other industry-leading metrics. Lately, we’ve seen the payments giant make major strides in the blockchain realm that could redefine its long-term growth trajectory.
Mastercard’s robust platform facilitates seamless crypto transactions, allowing users to purchase and cash out cryptocurrencies in over 100 million locations. Furthermore, compliance is an important theme in its blockchain strategy, optimized by its expert acquisition of Cipher Trace. The powerful crypto analytics firm has significantly strengthened Mastercard’s compliance and security capabilities. Additionally, the company actively seeks to drive widespread adoption of blockchain technology through strategic partnerships with leading blockchain networks and financial institutions.
Therefore, MA stocks are likely to benefit hugely from the proliferation of the blockchain space, positioning them for good gains.
Global X Blockchain ETF (BKCH)
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Investing in blockchain can be incredibly daunting, especially without understanding the topic. It covers a wide variety of areas, from financial transactions to healthcare and identity verification, among others. Plus, every vertical has immense growth potential and you don’t want to miss out on any of them. The Global X Blockchain ETF (NASDAQ:BKCH) offers perhaps the best solution to this conundrum.
The BKCH ETF invests in 27 leading blockchain stocks, covering a broad spectrum of verticals. It allows investors to effectively risk across a spectrum of companies engaged in multiple aspects of blockchain technology. It is therefore essentially a simplified path to investment, allowing investors to exploit the long-term potential of the sector, while efficiently curbing its complexity and risks. Plus, it comes with other benefits, like surprisingly attractive dividends grew over 500% on an annual basis.
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 Guidelines for publication.
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.