These three blockchain stocks seem well positioned to benefit from powerful tailwinds building in the market.
Republican presidential candidate Donald Trump has officially selected J.D. Vance as his running mate for the upcoming November election, raising many questions about the new VP nominee’s stance on certain areas of the economy, including taxation, business, and cryptocurrency.
Vance has certainly proposed policies similar to those of Trump, including plans to cut taxes, increase spending, and shift the focus away from allies like Ukraine and Taiwan. He also highlighted his interest in cryptocurrencies, mentioning his NFT collection and teasing new releases.
Vance, 39, is in his first term as a senator from Ohio. He served as a combat correspondent in the Marine Corps, studied at Ohio State University and Yale Law School, and joined Peter Thiel’s Mithril Capital in 2015. He gained fame with the publication of his autobiography “Hillbilly Elegy” in 2016, and founded venture capital firm Naria in 2019.
In addition to Thiel, who has invested $15 million into Vance’s campaign, other tech industry heavyweights such as Marc Andreessen, Ben Horowitz, Joe Lonsdale, Doug Leone, David Sachs and the Winklevoss twins have endorsed the Trump/Vance candidacy. Elon Musk also recently endorsed Trump, pledging to donate $45 million per month to a pro-Trump super PAC.
Given Vance’s pro-crypto stance and reputation, a win for him could see a boost in the following blockchain stocks:
Coinbase (COIN)
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Coinbase (NASDAQ:COIN) aims to increase financial freedom by modernizing the financial system and making crypto assets accessible to over 1 billion people. The platform supports trading, spending, staking, and storing global remittances. Additionally, the company is expected to release its Q2 2024 financial report after the market closes on August 1.
Coinbase is known as a leader in traditional financial innovation that is integrating cryptocurrency into mainstream usage. Coinbase, which owns nearly all of the cryptocurrency exchanges in the U.S., is expected to be one of the fastest growing companies in terms of revenue, with analysts predicting top-line growth of nearly 100%.
The company has seen impressive growth in recent quarters, with first-quarter earnings per share of $4.40, more than four times the $1.09 expected. Revenue also surged above expectations, as retail trading doubled and institutional trading increased by $133.
If this trend accelerates as more investors pump money into the regulated and stable cryptocurrency sector, Coinbase could be one of the biggest beneficiaries of this trend through its holdings.
Marathon Digital (MARA)
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Marathon Digital (NASDAQ:MARA) stands out as a leading Bitcoin (BTC-USD) miner, in part due to Marathon’s limited production decline following the halving and advanced technology such as dual-phase immersion cooling. The company’s expansion into mining tokens other than Bitcoin and its large Bitcoin holdings could significantly boost revenue and book value in a rising market environment.
MARA stock could stand to gain significantly based on Bitcoin’s expected future price movement following a Trump/Vance victory. Supportive expansion policies from regulators and the company’s growing operational hash rate (up 106% YoY) are key catalysts to watch. The company also has deep cash reserves of $1.5 billion and a new Kaspa (KAS-USD) mining venture geared towards growth.
Marathon shares rose on Friday as the price of Bitcoin surged to $66,000. Additionally, Marathon is scheduled to report its second-quarter 2024 financials on August 1.
Grayscale Bitcoin Trust (GBTC)
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Grayscale Investments (NYSEARCA:GBTC) recently announced a record date of July 30, 2024 for distributing shares in a new “mini” BTC trust, and shares will likely soar if Vance takes over as vice president. The Grayscale Bitcoin Mini Trust is still pending regulatory approval, but the trust will be listed on the NYSE Arca under the ticker BTC. GBTC will issue shares in the BTC trust on the record date. Grayscale will file additional details with the SEC after the record date.
GBTC will trade on NYSE Arca starting July 31. GBTC shareholders will receive pro rata shares in the mini-trust and will maintain their bitcoin holdings spread across the two funds. Bloomberg’s James Seifert noted that the spinoff will split existing investments between the original fund and the new ETF.
On the date of publication, Chris McDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author in accordance with InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
His passion for investing led Chris McDonald to earn an MBA in Finance and hold a number of management positions in Corporate Finance and Venture Capital over the past 15 years. His previous experience working as a financial analyst and passion for finding undervalued growth opportunities has led to his conservative, long-term investment view.
