2 Blockchain Stocks with a “Strong Buy” Rating for July 2024

Blockchain technology is rapidly transforming industries far beyond cryptocurrencies, offering unprecedented transparency, security and efficiency. This innovation has made blockchain stocks—shares in companies developing or integrating blockchain technology—extremely attractive to savvy investors.

Numerous companies are using blockchain to improve their operations, offer cutting-edge services, or drive advancements in the cryptocurrency sector. While some companies are dedicated solely to blockchain and cryptocurrency innovation, others are integrating blockchain to strengthen their existing, successful businesses.

Finbold has recognized this dynamic potential and identified two outstanding stocks with strong buy recommendations that promise significant added value to any investment portfolio through the use of distributed ledger technologies.

Mastercard Incorporated (NYSE: MA) stock

Mastercard Incorporated (NYSE: MA)’s innovative approach to blockchain has earned the company a spot on Forbes’ Blockchain 50 2023 list, underscoring its aggressive pursuit of distributed ledger technology.

Mastercard has been actively involved in exploring and adopting blockchain technology through several key initiatives. Launched in 2023, the Mastercard Multi-Token Network (MTN) is a blockchain-based platform designed to make transactions within digital asset and blockchain ecosystems more secure, scalable and interoperable.

In addition, Mastercard is actively participating in testing and discussions on central bank digital currencies (CBDCs) and is offering expertise and advice to governments considering CBDC implementation, the company said.

The company also runs the Start Path Crypto Program, which fosters innovation by supporting startups in the blockchain and digital asset space and helping them scale their businesses, prioritizing solutions that are energy efficient and have a positive social impact.

Mastercard has a market capitalization of $406.96 billion and a solid financial position. The company generated revenue of $25.7 billion last year and earned $11.85 per share.

The company pays a dividend of $2.64 per share and has an impressive year-over-year growth rate of 15.91%, making it attractive to both growth and income-oriented investors.

Analyst confidence is high, with the consensus price target at $524.50, representing an 18.89% increase from the current price of $441.16. Mastercard’s strategic acquisitions, strong cash flow, and continuous innovation position the company well for sustainable growth, making it an attractive buy.

Riot Blockchain, Inc. (NASDAQ: RIOT) stock

Riot Blockchain (NASDAQ: RIOT) is a major player in the Bitcoin mining sector and is continuously expanding its capacity to fully exploit the potential of blockchain technology. Riot recently signed a deal to purchase 31,500 next-generation miners from MicroBT, increasing its self-mining hash rate from 12.4 EH/s to 15.1 EH/s by the end of July.

In addition, Riot’s Corsicana facility, which is currently the world’s largest Bitcoin mining site with a developed capacity of 1 GW, is continuing to expand its mining capacity, the company said.

Financially, Riot has performed strongly, reporting revenue of $79.3 million, up from $73.2 million a year ago, and net income of $211.8 million, or $0.82 per share, driven by a 131% increase in the price of Bitcoin (BTC).

Analysts are very optimistic about Riot’s future, with the average price target at $18, representing a significant 96.94% increase from the current price of $9.14. Riot’s aggressive expansion and investment in advanced technology make the company an attractive option for investors looking to capitalize on the growth of blockchain technology.

Mastercard and Riot Blockchain are at the forefront of blockchain innovation in their respective sectors and therefore represent attractive investment opportunities for July 2024. Mastercard’s integration of blockchain into financial services, combined with its strong financial performance and strategic initiatives, makes the company a reliable long-term investment.

Riot Blockchain’s expanding mining operations, strong financials, and significant growth potential underscore its value as a high-growth investment. These stocks are well positioned to leverage the transformative power of blockchain and offer investors the opportunity to generate significant returns.

However, investors should remain cautious and conduct thorough research due to the inherent volatility and risks of the stock markets.

Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.