The swift rise in blockchain stocks associated with cryptocurrency-related public companies is explained by market participants’ hopes for the imminent approval of a Bitcoin ETF. For instance, shares of Grayscale Bitcoin Trust (OTCMKTS: GBTC) have surged by 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. Over the same period, shares of Nvidia (NASDAQ: NVDA), one of the top assets in the S&P500, showed a growth of 198%, while the index grew by 9%.
Embracing blockchain technology, particularly in the financial sector, could provide a substantial advantage for businesses over their conventional counterparts in handling payment transactions. Furthermore, brokerage firms providing digital assets might witness increased customer attraction compared to exchanges dealing solely in traditional investments like stocks and bonds.
The swift rise in blockchain stocks associated with cryptocurrency-related public companies is explained by market participants’ hopes for the imminent approval of a Bitcoin ETF. For instance, shares of Grayscale Bitcoin Trust (OTCMKTS: GBTC) have surged by 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. Over the same period, shares of Nvidia (NASDAQ: NVDA), one of the top assets in the S&P500, showed a growth of 198%, while the index grew by 9%.
Embracing blockchain technology, particularly in the financial sector, could provide a substantial advantage for businesses over their conventional counterparts in handling payment transactions. Furthermore, brokerage firms providing digital assets might witness increased customer attraction compared to exchanges dealing solely in traditional investments like stocks and bonds.
Block, Inc (SQ)
Block (NYSE: SQ), the fintech company led by former Twitter CEO Jack Dorsey, experienced a remarkable increase in its stock price in Q3. SQ skyrocketed by 20% and surpassed $52 following a positive Q3 earnings report. Formerly known as Square, Block made a 24% YoY net revenue growth, reaching $5.6 billion. Cash App, the company’s flagship product, predominantly fueled this remarkable performance. The app witnessed a 38% yearly surge in Bitcoin revenue, accounting for over 50% of the company’s Q3 net revenue, soaring to $2.4 billion.
Cash App is a mobile payment service enabling fiat transactions, Bitcoin trades, and stock investments. Making $3.6 billion in revenue and $985 million in gross profit, Cash App showcased substantial growth, climbing 34% YoY.
Block’s secondary payment platform, Square, reported $1.98 billion in revenues, depicting an 8% YoY increase. Block’s focus on fostering Bitcoin utilization within its business ecosystem, primarily through the Block ecosystem, holds the potential to establish the company as a hub for B2C cryptocurrency transactions. Integrating the Bitcoin Lightning network into Cash App in 2022 significantly streamlined Bitcoin transfers, reinforcing the company’s vision of a globally trusted open monetary transfer network backed by Bitcoin.
Nvidia (NVDA) and Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) are prominent chipmakers with a striking success story within their niche markets, particularly noteworthy blockchain stocks for their innovation. These industry giants specialize in crafting graphics processing units (GPUs), initially acclaimed for their prowess in enhancing high-level video game graphics. However, these GPUs now serve a broader purpose, powering critical applications for AI, data storage, and digital currencies.
The computational demands of cryptography and blockchain development align seamlessly with the capabilities of GPUs. In the past, the increased interest in cryptocurrencies spurred a surge in Nvidia and AMD stocks, driven by miners seeking GPUs for digital asset creation. GPUs remain integral tools in the creation and management of crypto assets. Notably, Nvidia introduced a dedicated lineup of chips designed for crypto mining, emphasizing their commitment to this burgeoning market.
Both Nvidia and AMD are strategically positioning themselves as chip technology leaders through strategic acquisitions. While Nvidia’s attempt to acquire ARM Holdings faced obstacles, AMD successfully finalized its purchase of Xilinx(NASDAQ: XLNX) in February 2022. Regardless of these acquisitions, both companies are poised to strengthen their foothold in the semiconductor industry, spearheading the development of emerging technologies like blockchain ledgers.
Mastercard (MA)
Mastercard (NYSE: MA), renowned in the payments industry, is extending its focus toward blockchain technology by introducing the Multi-Token Network (MTN). This initiative is aimed at streamlining transactions within the blockchain realm, commencing with the exploration of tokenized bank deposits and gradually encompassing stablecoins and central bank digital currencies.
At the core of the MTN initiative is the transformation of traditional bank deposits, imbuing them with the programmability and accessibility inherent in crypto assets. This pioneering approach involves converting bank account funds into digital assets on the blockchain, mirroring the functionality witnessed in the dynamic crypto space.
Aligned with the MTN launch, Mastercard reinforces its blockchain endeavors through its Crypto Credentials, a blockchain analytics tool introduced earlier in April. By ensuring transaction compliance with stringent regulatory standards like anti-money laundering, this technology aims to uphold regulatory compliance. Raj Dhamodharan, Mastercard’s head of crypto and blockchain, envisions manifold applications, including facilitating seamless cross-border transactions using tokenized bank deposits among institutions in different nations.
Mastercard’s strategic foray into blockchain signifies a steadfast commitment to innovate within this landscape, aiming to optimize the efficiency of traditional banking structures. Mastercard’s initiative presents a promising opportunity for those considering investments in blockchain stocks. The current trading position of MA stock, trading below its analyst price target, suggests potential for substantial market expansion and robust growth in the foreseeable future.