Blockchain stocks should be on your radar. We’ve seen Bitcoin (BTC-USD) retrace from the $30,000 level this year and then back towards $25,000. Now it’s hovering around the $27,000 mark and there could be some more upside in store. Blockchain stocks often show at least a moderate correlation with the price of the broader market, thus making it a good time to invest.
The blockchain stocks in this list are positioned to surge higher. Each of the picks has strong competitive moats and is often heavily invested in the crypto market. You can think of these blockchain stocks as a kind of leverage that may amplify potential gains or losses.
These are some of the top blockchain stocks to consider heading into 2024.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) designs graphic processing units (GPUs) used in various technological fields, such as artificial intelligence, gaming, autonomous vehicles, and cryptocurrency mining.
One of the things I love about NVDA as a blockchain stock is that it is also ushering in a new age of awareness around artificial intelligence. There’s also some good reason to believe there may be a correlation between NVDA’s stock price and its emergence on a broader societal level.
AI-related cryptocurrencies saw significant gains after Nvidia exceeded Q2 earnings estimates. Nvidia’s success is attributed to the rise in accelerated computing and generative AI. Nvidia reported Q2 sales of $13.51 billion, surpassing the expected $11.19 billion. The company’s projected sales for Q3 are about $16 billion.
This means NVDA can be considered a blue-chip stock, an AI stock, and a blockchain stock. Each of these sectors is a valuable catalyst that makes the company an enticing blockchain stock to buy.
Mastercard (MA)
Mastercard (NYSE:MA) is a global credit card company that has been a dominant force in the financial sector, serving as a digital payment network. Something that many investors don’t know about MA stock though is that it also has its own blockchain solution with its Multi-Token Network.
In addition to its blockchain network, MA stock is also dipping its toes into the water in the Web3 space. This week, the company announced results from its Mastercard Artist Accelerator, supporting emerging artists. This move has positively impacted Mastercard’s revenue, particularly with Gen Z consumers. The company observes a shift from vanity NFTs to utility NFTs, such as tokens unlocking exclusive content.
Making NFTs useful is one of the goals of the accelerator, and MA expects that we’ll see more utility-based NFTs in the future rather than those minted purely for the purpose of aesthetics or speculation. The accelerator has enabled 100,000 artists to access educational resources and mint NFTs. The platform educated 5,000 users on creating their own NFT music tracks. It’s developments like these that make Mastercard a promising blockchain stock.
Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ:RIOT) has over two decades of experience in the technology sector and is prominent in crypto mining, specifically Bitcoin. The company holds a reserve of over 7000+ BTC, which may help amplify potential gains and losses and its book value changes with the broader crypto market.
In addition to being one of those great blockchain stocks, RIOT is also exploring other ways to maximize its revenues and earnings. It recently recorded $31.7 million in earnings from power credits during Texas’s August heat wave. These earnings stemmed from participating in programs designed to alleviate power shortages by compensating certain consumers for adjusting their energy consumption.
These power credits may help blockchain mining credits like RIOT offset what some consider wasteful energy spending. It’s also a profitable way to diversify its revenue streams.
Besides these initiatives, In 2023, RIOT’s has almost tripled. This surge is attributed to the company’s significant investment in expanding its Bitcoin mining capacity, which complemented Bitcoin’s 65% gains during the same period. It’s huge moves like these that help make RIOT a top blockchain stock to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.