These three stocks are strong picks for investors seeking exposure to cryptocurrencies and the blockchain.
Although blockchain technology is still in its infancy, it has the power to completely transform a wide range of sectors, and these three stocks are strong picks for investors:
- Coinbase (COIN): The top centralized cryptocurrency exchange in the United States is a good place to start.
- Nvidia (NVDA): With a high price tag, it stands out as a reliable option in the generative AI market.
- Riot Platforms (RIOT): This stock will encourage you to embrace the evolving cryptocurrency market and take advantage of the growing interest in Bitcoin.
The kind of disruptive force that many investors are looking for is blockchain technology. All of the main cryptocurrencies and related tokens are supported by this encryption technique. Numerous cryptos available now offer real-world applications and utility in addition to the trade of digital assets.
However, publicly traded businesses are also active in this sector. Here are three choices for investors searching for exposure to this industry without having to use centralized or decentralized exchanges for trading. These businesses provide investors looking for exposure to cryptocurrencies better liquidity and trading simplicity.
Coinbase (NASDAQ:COIN) is one of the market leaders and most closely related companies in the blockchain industry. The top cryptocurrency exchange in the US, has successfully carved out a distinct market for itself. In recent years, Coinbase has been a pillar of goodwill in an industry with some dubious figures, working to cooperate with regulators.
Nevertheless, a recent Securities and Exchange Commission (SEC) lawsuit has altered the perception of this company among many investors. According to the SEC, Coinbase was instrumental in the selling of unregistered securities. Regulators have continued to pound the hammer down despite the company’s efforts to comply from the beginning.
The outcome of this situation is still unknown. But for investors who eventually think that cryptocurrencies will succeed, Coinbase is still an important entity to keep in mind should prices dip in the future. In fact, the recent movement in the COIN stock shows how much of a momentum bet this cryptocurrency firm is.
For investors hoping to participate in the artificial intelligence revolution, Nvidia (NASDAQ:NVDA) is a strong pick. That much is obvious given the stock’s meteoric climb and new all-time high valuations of more over $1 trillion.
Investors, however, also keep an eye on Nvidia because of its exposure to other important growth markets. Nvidia’s chips are the unsung heroes that enable all this computing genius, whether it is in the metaverse, gaming, or blockchain technology.
The best high-performance GPUs available are those from Nvidia. As a result, a lot of the top players keep using their chips and upgrading frequently.
Nvidia shares have recovered to $430 and are poised for additional rise as a result of bullish views regarding future demand in important growth industries. Because analysts have set target prices as high as $600, Nvidia is a tempting investment for risk-averse investors in this market.
Riot Platforms (RIOT)
During the “crypto winter” of 2022, Riot Platforms (NASDAQ:RIOT), a top Bitcoin (BTC-USD) mining company, suffered a setback, but has since recovered in 2023. With rising Bitcoin prices and a noteworthy production of 2,115 BTC in the first quarter, Riot Platforms has a sizable balance sheet of more than 7,100 BTC. The business is well-positioned in the mining sector with a sizable fleet of 94,176 Bitcoin miners. Notably, the stock has increased by an astounding 254% since 2023.
Riot, a well-known Bitcoin mining company, has a mining capacity of 10.5EH/s at the end of the first quarter of 2023 and intends to increase it to 12.5EH/s in the second half of the year. Additionally, they have a contract in place to buy 33,280 new bitcoin miners, bringing their total capacity to 20.1EH/s in 2024.
Riot also has the choice to purchase 66,560 additional miners, which may increase mining capacity to 35.4EH/s. With a debt-free balance sheet, $390 million in cash, and digital assets, the company is well-positioned for significant development.