Table of Contents
When experts talk about disruptive technologies that have the capacity to drastically change our world, 5-10 years from now, Blockchain technology is always in their top 10 list.
As a growth investor, investing in Blockchain technology stocks is a no-brainer, because the bread and butter of growth investors are companies developing disruptive technologies.
According to marketsandmarkets.com, “the global blockchain market size is expected to grow from USD 3.0 billion in 2020 to USD 39.7 billion by 2025, at an impressive Compound Annual Growth Rate (CAGR) of 67.3% during 2020–2025.”
But WTF is Blockchain technology?
IBM, a leading player in blockchain for enterprise application, defines Blockchain as a “shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.”
Basically, blockchain is a ledger technology, a decentralized way of keeping records of data with the promise of greater transparency, enhanced security, improved traceability, increased efficiency and speed, and reduced costs.
Why’s Blockchain Technology a big deal?
To better understand the significance of Blockchain Technology, you have to understand the role of data in contemporary society.
“Data is the fuel that powers much of our technological progress,” former FTC Commissioner, Terrell McSweeny.
Everyone (individuals, small businesses, big corporations, and public institutions) needs data, data is oxygen in this digital world. A technology that improves quality of information (processed data), speeds data processing time and enhances the security of stored data while being decentralized is nothing but disruptive.
Checkout How Blockchain Technology Works. Guide for Beginners
by Cointelegraph.com, and 25 Blockchain Applications & real-world use cases disrupting the status quo by Builtin.com.
Blockchain Technology was first deployed in 2008 to serve as the public transaction ledger of bitcoin, this explains, to a large extent, why blockchain technology is popularly adopted in cryptocurrencies and why most successful blockchain stocks are in the crypto space.
Nonetheless, blockchain is being adopted in many industries, other than the crypto space, for record keeping.
Basically, any industry that keeps records and relies on record keeping to be effective and efficient, Blockchain Technology is set to disrupt. Think about the health care sector, they rely heavily on patient records; how about the financial sector, retail, or manufacturing?
Also Checkout: 10 Top Blockchain Security Companies 2023
Predominantly, the financial sector is where blockchain is currently disrupting at a scale that growth investors can jump into right now. And it’s quite factual to say that the rise of bitcoin and other cryptocurrencies like Ethereum is fueling the wild growth in blockchain stocks with a respectable degree of exposure to cryptocurrencies.
Owing to the rise of bitcoin in 2020 and 2021, it’s little wonder that a lot of blockchain penny stocks took off in 2020 and continued trending northwards in 2021.
There’s a promising wave to ride by investing in blockchain stocks in 2023 with bitcoin gaining mainstream adoption.
“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.” Vitalik Buterin, Co-Founder of Ethereum
If you’re interested in investing in Blockchain Technology, here are 7 blockchain stocks to consider:
1. Riot Blockchain, Inc. (NASDAQ: RIOT)
Riot Blockchain, Inc., together with its subsidiaries, focuses on building, supporting, and operating Blockchain technologies ecosystem.
It is involved in digital currency mining operation, which utilizes specialized computers that generate digital currency primarily bitcoin.
The company also holds interests in various activities, including purchasing and selling digital currencies; provides accounting, audit, and verification services for blockchain based assets, such as cryptocurrencies; and develops TessPay, a payments ecosystem for component and sub-component supply chain settlement solution, as well as other blockchain solutions for telecommunications companies.
On February 11, 2021, the company announced that it will achieve an estimated hash rate capacity of 1.06 Exahash per second (“EH/s”) with the deployment of the newly received 2,002 S19 Pro Antminers. With the deployment of these 2,002 S19 Pro Antminers, Riot will have a total of 11,542 Antminers in operation.
Riot has an additional 26,100 S19 Pro and S19j Antminers on order with Bitmain, which are scheduled for shipment each month through October 2021. Once fully deployed, the Company estimates it will have a total of 37,642 Bitmain Antminers in operation with an estimated aggregate bitcoin mining hash rate capacity of 3.8 EH/s.
Riot Blockchain, Inc. was founded in 2000 and is based in Castle Rock, Colorado.
2. Square Inc. (NYSE: SQ)
Square, Inc. (NYSE: SQ) builds tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in-person, manage their business, and access financing. And individuals use Cash App to spend, send, store, and invest money.
The Cash App is a mobile payment service that allows users to transfer money to one another, as well as invest in stocks and Bitcoin. It was first launched in 2013 as Square Cash enabling users to send and receive money, and in 2018, the Cash App was expanded to support bitcoin trading.
“The one word that sums up everything we’ve been trying to do at Square is ‘access.’ And I don’t think there’s a greater technology out there that enables the kind of access we need at the individual level – that is borderless, that is not controlled by any one particular company, and that was born on the Internet, and continues to be developed on the Internet – than [cryptocurrency]” Jack Dorsey, Square CEO.
In March 2019, Square CEO, Jack Dorsey, tweeted that Square was actively recruiting a modest team of cryptocurrency developers and designers to work on open-source contributions to the cryptocurrency ecosystem.
Later in 2019, the company formed Square Crypto, an independent team solely focused on contributing to bitcoin open-source work for the benefit of all, and also recently launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.
All these moves makes Square a leading player in the application of Blockchain Technology for financial services, and it’s not just the moves that makes Square a standout blockchain stock, it’s the patents.
In 2018, they were awarded a patent that allowed merchants to accept payments in any cryptocurrency. And in 2020, they were awarded another patent that allowed customers to pay with cryptocurrency (or any other potential asset) with their crypto-to-fiat payments network.
Impressively, Square’s crypto payments network is built on a private blockchain network that will record transactions in real-time, allowing Square to view balances before the changes are broadcasted/wired to the public blockchain.
Square is one of those companies that a growth investor can buy and hold for the next decade, it could potentially be the Amazon of the fintech space.
The company was founded by Jack Dorsey and Jim McKelvey in February 2009 and is headquartered in San Francisco, CA.
3. Mogo Inc (NASDAQ: MOGO)
Mogo Inc. operates as a digital payments and financial technology company in Canada. The company provides finance app that empowers consumers with solutions to help them get in control of their financial wellness.
It offers users a free MogoAccount and provides access to various products, including free credit score monitoring, identity fraud protection, digital spending account with Platinum Prepaid Visa Card, digital mortgage experience, the MogoCrypto account, a product within MogoWealth that enables the buying and selling of bitcoin, and access to smart consumer credit products through.
Mogo’s wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC.
The company’s platform delivers digital experience with various products all through one account.
On February 11, 2021, Mogo announced a deal to buy just under 20% of Coinsquare Ltd. for about C$56.4 million ($44.5 million), with the option to buy an additional 20% via share purchases and exercising of warrants.
Coinsquare is Canada’s premier cryptocurrency trading platform for trading Bitcoin, Ethereum, XRP, and other digital currencies. These move increases Mogo’s exposure to bitcoin and cryptocurrencies at large, making it a promising blockchain play.
Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
4. Canaan Inc (NASDAQ: CAN)
Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final system products by integrating IC products for bitcoin mining and related components primarily in the People’s Republic of China.
The price of Bitcoin has been rising for years now and has risen dramatically in recent months, expectedly, this will attract more miners to the pool.
As such, there’s and will be more demand, from bitcoin miners, for mining equipment such as ASIC. Therefore, it’s no surprise that companies like Canaan are benefiting fro in the short run from this crypto boom.
Canaan is also involved in the assembly of system products; and supply chain and distribution of system products. The company has a strategic cooperation with Northern Data AG in the areas of artificial intelligence development, blockchain technology, and datacenter operations.
The company was founded in 2013 and is based in Hangzhou, the People’s Republic of China.
5. Silvergate Capital Corp (NYSE: SI)
Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States and internationally.
It focuses on the financial infrastructure solutions and services for participants in the nascent and digital currency industry.
The company provides cash management services for digital currency-related businesses, accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts.
Its loan products include one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property.
The company was founded in 1988 and is headquartered in La Jolla, California.
6. Marathon Patent Group Inc (NASDAQ: MARA)
Marathon Patent Group, Inc. is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
The company currently operate their proprietary Data Center in Hardin MT with a maximum power capacity of 105 Megawatts. The Company also owns 2,060 advanced ASIC Bitcoin Miners at a co-hosted facility in North Dakota.
Marathon is one of the largest enterprise Bitcoin self-mining companies in North America and one of the first to be listed on NASDAQ. On February 1, 2021, the company announced that 4,000 Antminer S-19 Pro ASIC miners have been shipped from Bitmain to Marathon’s mining facility in Hardin, MT as scheduled.
Marathon’s current mining fleet consists of 2,560 miners, generating 248 PH/s (petahash per second). Each S-19 Pro miner produces 110 TH/s (terahash per second) and adds 0.11 PH/s to the Company’s existing operations. Once the additional 4,000 miners are installed, the Company’s mining fleet will consist of 6,560 miners producing approximately 688 PH/s.
As of February 1, 2021, the Company has purchased 103,060 miners, which, once delivered and fully deployed, will produce approximately 10.36 EH/s (exahash per second).
The company was formerly known as American Strategic Minerals Corporation and changed its name to Marathon Patent Group, Inc. in February 2013.
Marathon Patent Group, Inc. was founded in 2010 and is headquartered in Las Vegas, Nevada.
7. Coinbase Global (NASDAQ: COIN)
Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy.
The company provides primary financial account for the cryptoeconomy, a platform to invest, store, spend, earn, and use crypto assets; an online marketplace for hedge funds, money managers, and corporations; and a platform with technology and services to developers, merchants, and asset issuers that enables them to build applications that leverage crypto protocols.
It serves retail users, institutions, and ecosystem partners.
The company was founded in 2012 and is based in Wilmington, Delaware.
Henry John is a Stock Portfolio Manager that focuses on companies developing cutting-edge technologies.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
I’m a self-made millionaire who made most of his money investing in technology companies while working in finance.
Yes! I owe it all to tech and finance.