The Blockchain Bull Run: 3 Stocks You Need to Grab for Life-Changing Gains

19 views 1:09 pm 0 Comments March 27, 2024

The blockchain bull run is on. Surging crypto prices, from Bitcoin (BTC-USD) to a series of altcoins, have reignited investor interest in many digital assets. From blue-chip blockchain stocks central to the crypto movement to the most speculative meme coins, investors of all stripes are looking at assets many may have never thought would be on their radar.

Of course, there are a myriad of ways investors can gain exposure to this high-growth movement. Investing directly in cryptocurrencies is certainly the most straightforward path. Then, there’s the option to buy spot and futures-based ETFs, made possible by recent SEC approvals. Or, one can choose to invest in crypto-related stocks.

These three companies may fit the profile of investors looking to strike it rich in this crypto bull market. Be warned — investing in these stocks carries higher than average risk. However, these blockchain stocks may be worth looking for for those willing to stomach the volatility.

Coinbase (COIN)

Coinbase (COIN), is an American company that operates a cryptocurrency exchange platform. Ethereum (ETH-USD) coin on the background of the Coinbase inscription.

Source: Sergei Elagin / Shutterstock.com

Investing in Coinbase (NASDAQ:COIN) offers exposure to the growing crypto market without picking individual altcoins. Despite ongoing SEC disputes, COIN stock more than tripled over the past year, driven partly by surging crypto valuations. Transaction volumes have surged as crypto prices took off. And given that’s where Coinbase earns the vast majority of its revenue and profits, it’s been game on for this crypto stock.

JMP analyst Devin Ryan reiterated a Market Outperform rating for setting a $300 target. Ryan recognized Coinbase’s growth potential beyond a cryptocurrency exchange. He noted rising spot-trading volumes, indicating growth opportunities as the market matures.

In other positive news around this centralized crypto exchange, Coinbase Derivatives, a branch of the U.S.-based exchange Coinbase, plans to launch cash-settled futures for Dogecoin (DOGE-USD), Litecoin (LTC-USD) and Bitcoin Cash (BCH-USD) by April 1. Based on Dogecoin’s persistent popularity, the move awaits approval from the U.S. Commodity Futures Trading Commission.

The self-certification method allows Coinbase Derivatives to proceed pending regulatory compliance. As more tokens get added to this centralized exchange and the project expands its business lines to futures contracts and other derivatives, investors could benefit (as long as this surge continues).

Marathon Digital (MARA)

Person holding mobile phone with logo of American company Marathon Digital Holdings Inc. on screen in front of web page. Focus on phone display. Unmodified photo. MARA stock

Source: T. Schneider / Shutterstock.com

Marathon Digital Holdings (NASDAQ:MARA) is a leading Bitcoin miner focused on generating revenue by turning its massive hoard of computing power into Bitcoin. Like other Bitcoin miners, Marathon Digital’s price performance has been volatile in recent years, generally moving alongside Bitcoin’s price movements. However, a recent decoupling between the two, tied to Bitcoin’s upcoming halving, has caused some investors serious concern.

That’s because mining rewards will be cut in half in roughly three weeks. Thus disrupting Marathon Digital’s entire business model (at least from a margin perspective) unless Bitcoin doubles in value and quick.

Many Bitcoin bulls believe this to be the case. If such a surge materializes, MARA stock may be very attractively valued at current levels. The company has strengthened its cryptocurrency mining presence with a $87.3 million acquisition of a 200-megawatt Bitcoin mining data center in Garden City, Texas, emphasizing sustainability and operational control. 

This marks its second major expansion in four months, increasing self-owned and operated megawatts to 54% and aligning with its strategy to reduce costs by approximately 20% at the site. If margins improve alongside Bitcoin prices, this speculative stock could take off in the coming months. It’s a gamble but one many Bitcoin maxis may be willing to make.

Nvidia (NVDA)

Nvidia logo seen on smartphone which is placed on pile of US dollar bills. Concept. Selective focus. Stocks to buy like Nvidia

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At this point, Nvidia (NASDAQ:NVDA) is truly the semiconductor and AI chip king, and the company is not stopping anywhere in the competition.

At its GPU Technology Conference, Nvidia unveiled the GB200 chip, powering the Blackwell B200 GPU, surpassing the H100 AI chip with significant performance and efficiency enhancements. With 208 billion transistors, the B200 GPU delivers 20 petaflops of FP4, outperforming the H100 by 30 times in LLM inference workloads while reducing energy consumption by 25-fold. In GPT-3 LLM benchmarks, the GB200 performs seven times faster than the H100. Training a model with 1.8 trillion parameters requires only 2,000 Blackwell GPUs, consuming just 4 megawatts, compared to 8,000 Hopper GPUs and 15 megawatts.

Such chips will likely play a key role in driving the future of AI applications both in the conventional sense and on-chain. Several blockchain-based AI projects are popping up, ready to take advantage of the incredible surge in interest in this space.

As the backbone of everything AI, investors can gain indirect exposure to growing AI application development in the crypto world by buying this stock.

On the date of publication, Chris MacDonald did not have (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 the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.