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In this article, we discuss 12 best blockchain stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Blockchain Stocks To Buy Now.
Blockchain allows companies and customers to democratize services and allow for data security. Blockchain adoption is spreading across industries as a result of the growing demand for cryptocurrencies and Web3 integration. Businesses are enthusiastic about the idea of decentralized data, rather than data coming through server farms operated by a bunch of Big Tech companies.
In mid-October, Bloomberg Businessweek and Bloomberg Intelligence surveyed technology executives across a wide range of industries. The responses indicated that executives are far more enthusiastic about blockchain’s ability to fast pace mundane solutions including data collaboration, transparent supply chains, and cost efficiency, whereas decentralization ranked lowest. 90% of these tech executives also considered cryptocurrency to be advantageous.
A few blockchain trends to watch for 2023 include tokenization of assets using blockchain, blockchain in international trade, evolving cryptography using blockchain, decentralized applications on blockchain, blockchain-as-a-service, private blockchains, higher blockchain security, and enterprise blockchains. Some of the best blockchain stocks to invest in include NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
We selected the following blockchain stocks based on positive analyst coverage, strong business fundamentals, and market visibility. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022.
Photo by Nick Chong on Unsplash
Best Blockchain Stocks To Buy Now
12. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 1
HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) was incorporated in 1987 and is headquartered in Vancouver, Canada. It operates as a cryptocurrency mining company in Canada, Sweden, and Iceland, specializing in the mining and commercialization of digital currencies, including Ethereum, Ethereum Classic, and Bitcoin. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is one of the best blockchain stocks to invest in. The company mined 858 Bitcoin and 7,309 Ethereum, equalling 1,380.2 Bitcoin equivalent during the three month period ended September 30, 2022.
On August 18, H.C. Wainwright analyst Kevin Dede raised the price target on HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) to $7 from $6 and maintained a Buy rating on the shares. The analyst has continued confidence in the company's execution but said the Ethereum merge poses top-line risk.
Like NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Amazon.com, Inc. (NASDAQ:AMZN), HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is one of the best blockchain stocks to monitor.
11. Bakkt Holdings, Inc. (NYSE:BKKT)
Number of Hedge Fund Holders: 8
Bakkt Holdings, Inc. (NYSE:BKKT) is a Georgia-based company that operates a digital asset platform enabling consumers to buy, sell, convert, and spend digital assets. Its customers include merchants, retailers, and financial institutions. Bakkt Crypto Solutions integrates crypto seamlessly into banking apps, payment solutions, and rewards programs. Bakkt Holdings, Inc. (NYSE:BKKT)'s Q3 revenue of $12.9 million climbed 41.8% year-over-year. Transacting accounts of 678,000 increased 21% from the prior-year quarter.
On November 29, Rosenblatt analyst Andrew Bond initiated coverage of Bakkt Holdings, Inc. (NYSE:BKKT) with a Buy rating and a $2.20 price target. The analyst believes in the potential of digital assets and blockchain technology, and sees a future in which decentralized finance looks similar to traditional finance. Bakkt Holdings, Inc. (NYSE:BKKT) is positioning itself to "win this evolution" and has the platform and technology to succeed, the analyst told investors.
According to Insider Monkey’s data, 8 hedge funds were bullish on Bakkt Holdings, Inc. (NYSE:BKKT) at the end of September 2022, compared to 12 funds in the prior quarter.
10. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 8
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is headquartered in Las Vegas, Nevada, and it operates as a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and digital assets in the United States. October was the most productive month in Marathon Digital Holdings, Inc. (NASDAQ:MARA)’s history in terms of hash rate growth and Bitcoin production. The company mined a record 615 Bitcoins in October, increasing 71% from September's production.
On November 8, Jefferies analyst Jonathan Petersen reiterated a Buy rating on Marathon Digital Holdings, Inc. (NASDAQ:MARA) but lowered the price target on the shares to $12.50 from $24 ahead of the company's Q3 results. Along with the earnings report, the analyst said he hopes to learn more about anticipated impacts from Compute North's bankruptcy, capital requirements into 2023, and whether Marathon Digital Holdings, Inc. (NASDAQ:MARA) will start selling its Bitcoin, he told investors.
According to Insider Monkey’s third quarter database, 8 hedge funds were long Marathon Digital Holdings, Inc. (NASDAQ:MARA), compared to 12 funds in the prior quarter.
Here is what Horizon Kinetics 1st/2nd Quarter Interim Commentary has to say about Marathon Digital Holdings, Inc. (NASDAQ:MARA) in its Q1 2022 investor letter:
“Investors also tend to not give sufficient credit to the power of management to enhance or create additional value with such an asset. The commercialization of land requires considerable management expertise. This particular transaction involves two other parties that will build and operate up to 60 megawatts of bitcoin mining, which was stated could accommodate up to 2.0 Exahash of operational capacity. That is quite sizable. As a reference point, Marathon Digital Holdings (NASDAQ:MARA), which has a $1.0 billion stock market value, even after a year-to-date decline of 70%, had about 3.6 EH/s of capacity at year-end 2021, though it expects to reach 13.3 EH/s during this calendar year. The TPL venture is expected to begin operations in the fourth quarter of this year.”
9. Riot Blockchain, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 11
Riot Blockchain, Inc. (NASDAQ:RIOT) is a Colorado-based company that is engaged in bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments.
On November 23, H.C. Wainwright analyst Mike Colonnese initiated coverage of Riot Blockchain, Inc. (NASDAQ:RIOT) with a Buy rating and a $10 price target. The company has quickly grown to be one of the biggest, vertically integrated, publicly traded bitcoin miners in the world, the analyst wrote in a research note. He forecasts that Riot Blockchain, Inc. (NASDAQ:RIOT)’s market share should grow to more than 4% by Q4 2023, noting that the company "continues to rapidly scale operating capacity." He sees Riot Blockchain, Inc. (NASDAQ:RIOT) as a beneficiary of the "impending industry shakeout resulting from the prolonged period of suppressed" bitcoin prices. It is one of the best positioned miners "to navigate this crypto winter and come out on the other end stronger," contended the analyst.
According to Insider Monkey’s data, Riot Blockchain, Inc. (NASDAQ:RIOT) was part of 11 hedge fund portfolios at the end of September 2022, compared to 13 in the prior quarter. The collective stakes in Q3 2022 increased to $29.3 million from $13.6 million in Q2 2022. Dmitry Balyasny’s Balyasny Asset Management is a prominent stakeholder of the company, with 1.25 million shares worth $8.80 million.
8. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 13
Applied Digital Corporation (NASDAQ:APLD) was incorporated in 2001 and is based in Dallas, Texas. Formerly known as Applied Blockchain, Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates data centers in North America. These data centers offer digital infrastructure solutions to the performance computing industry. Applied Digital Corporation (NASDAQ:APLD)’s Q3 2022 revenue of $6.92 million outperformed Wall Street estimates by $287,800.
On October 12, Lake Street analyst Rob Brown maintained a Buy recommendation on Applied Digital Corporation (NASDAQ:APLD) but trimmed the price target on the shares to $6 from $10 after the company reported August quarter revenue at the high end of the guidance range of $6.5 million-$6.9 million, but did not offer a Q2 outlook given unpredictability on timing of regulatory approvals for the Texas facility and timing of construction of the North Dakota facility.
Among the hedge funds tracked by Insider Monkey, 13 funds were long Applied Digital Corporation (NASDAQ:APLD) at the end of Q3 2022, compared to 12 in the prior quarter. The collective stakes held by elite funds increased to $21.7 million in Q3 from $12 million in Q2.
7. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 24
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based company that operates a financial services platform in the United States. The Robinhood platform allows users to invest in stocks, exchange traded funds, options, gold, and cryptocurrencies. Net cumulative funded accounts at the end of October were 22.9 million, up approximately 30,000 from September 2022.
At the end of September 2022, the company launched Robinhood Wallet, a standalone app that will support Polygon as its first blockchain network, allow customers total control of their crypto, let them trade and swap crypto with no network charges, and enable seamless access to the decentralized web. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best blockchain stocks to monitor.
On November 15, Deutsche Bank analyst Brian Bedell maintained a Hold rating on Robinhood Markets, Inc. (NASDAQ:HOOD) but trimmed the price target on the shares to $9 from $11. The analyst revised estimates and price targets midway through Q4 for the brokers, asset managers, and exchanges. The sector has a "mostly upward bias" given the robust equity market rebound in Q4 so far, the analyst told investors in a research note.
According to Insider Monkey’s Q3 data, 24 hedge funds were long Robinhood Markets, Inc. (NASDAQ:HOOD), compared to 26 funds in the prior quarter. Cathie Wood’s ARK Investment Management held the leading stake in the company, comprising approximately 33 million shares worth $332.3 million.
Here is what Claret Asset Management has to say about Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2021 investor letter:
“Robinhood went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
6. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 28
Coinbase Global, Inc. (NASDAQ:COIN) is one of the premier blockchain stocks to invest in. The company provides financial infrastructure and technology for the crypto economy in the United States and internationally. Coinbase Ventures, an early-stage venture fund, focuses on investments into blockchain and cryptocurrency-related companies.
On December 2, Piper Sandler analyst Richard Repetto told investors that despite an 18% workforce reduction in June, Coinbase Global, Inc. (NASDAQ:COIN) headcount is still up 26% year-to-date through Q3 and declined only 5% quarter-over-quarter. The analyst, who believes Coinbase Global, Inc. (NASDAQ:COIN) has a "very strong cash position and may even capitalize on the FTX bankruptcy upheaval over the long term," thinks a "more aggressive headcount reduction is a prudent step in managing expenses and sustaining shareholder value in a potential extended 'crypto winter' that could result." He maintained an Overweight rating on Coinbase Global, Inc. (NASDAQ:COIN) with a $100 price target.
Among the hedge funds tracked by Insider Monkey, 28 funds reported owning stakes worth $976.8 million in Coinbase Global, Inc. (NASDAQ:COIN) at the end of Q3 2022, compared to 29 funds in the prior quarter worth $1.17 billion. Jim Simons’ Renaissance Technologies is a prominent stakeholder of the company, with approximately 3 million shares valued at $190 million.
In addition to NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Amazon.com, Inc. (NASDAQ:AMZN), Coinbase Global, Inc. (NASDAQ:COIN) is one of the leading blockchain stocks to watch.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:
“Coinbase Global Inc. Ordinary Shares (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”
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Disclosure: None. 12 Best Blockchain Stocks To Buy Now is originally published on Insider Monkey.
