By holding these three profitable blockchain stocks, you can make big gains in the blockchain industry.
A major consideration when choosing blockchain stocks is regulatory risk. The blockchain industry is young and does not yet have clear regulations. It is important to understand how future regulations will affect your investment.
For example, J.D. Vance, who was nominated as President Trump’s running mate in the 2024 presidential election, is a cryptocurrency advocate and has received support from tech billionaires such as Peter Thiel and the Winklevoss twins.
A Trump victory in the next election would have huge implications for the industry, and such a victory could bode well for the future of cryptocurrency regulation.
With this in mind, these blockchain stocks could benefit from crypto-friendly regulation. These stocks have all the hallmarks of a stock that could soar. These stocks have performed pretty well in 2024, and aggressive regulation could provide an additional boost.
With growing institutional interest, these blockchain stocks could see big upside in the future.
New Holdings (NU)
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Nu Holdings (NYSE:NU) is the world’s largest digital banking platform outside of Asia, and currently has nearly 100 million customers across South and Central America.
Nu Holdings is leveraging its proprietary blockchain technology to transform the financial system in the Americas.
The company has launched a number of blockchain-based services to date, with a recent example being its partnership with Lightspark.
Through this agreement, the company aims to use blockchain to enhance its customers’ banking experience. The company has previously worked with Fireblocks to offer a number of blockchain products.
For the first quarter of fiscal 2024, Nu Holdings reported revenue of $2.7 billion, up 64% year over year. Deposit balances for the quarter increased 53% year over year to $24.3 billion. Net income increased to $378.8 million from $141.8 million a year ago.
In Brazil, Nu Holdings announced monthly net user additions of 12.3 million, making it the country’s fourth-largest financial company by user base.
Based on strong financial results, NU shares are up 49% so far in 2024, signaling future growth potential.
Given its strong financial performance and growing use cases for blockchain, Nu Holdings is one of the most profitable blockchain stocks. Investing in NU gives investors exposure to the promising blockchain sector and the fintech industry.
Coinbase Global (COIN)
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Coinbase Global (NASDAQ:COIN) is a leading cryptocurrency exchange in the United States. The company’s services are available to both institutional and retail investors. The company’s most popular services are Coinbase Wallet, USD Coin, and Coinbase Pro.
COIN stock experienced a significant price increase after the Securities and Exchange Commission approved the exchange-traded fund on January 10. On July 22, the commission approved the Ethereum exchange-traded fund. This new approval was a major boost for COIN stock.
Coinbase is the leading platform for US investors to invest in the blockchain space. Nevertheless, the company still faces some legal challenges. The company is working to clear accusations of being an unregistered securities exchange.
Coinbase reported first quarter fiscal 2024 earnings of $1.6 billion in revenue, up 72% quarter-over-quarter, with net income of $1.2 billion and adjusted EBITDA of $1 billion. As of the end of the quarter, the company had $1.1 billion in U.S. resources, providing excellent liquidity.
The company’s shares have performed extremely well in 2024, up 45.58% year-to-date and an astounding 131.61% over the past 12 months. Coinbase is set to see increased interest from institutional investors following the U.S. Securities and Exchange Commission’s approval of a new crypto exchange-traded fund.
As a result, investors in this promising stock could see even bigger gains. Though the stock has rallied significantly in recent months, it still trades at a significant discount to its all-time high of more than $342 per share hit in November 2021.
Coinbase’s recent performance and recent regulatory developments make the company a worthwhile stock to own, and if you’re looking for blockchain stocks to invest in, COIN should be your top priority.
MicroStrategy (MSTR)
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MicroStrategy (NASDAQ:MSTR) is a well-known enterprise analytics company that is heavily invested in Bitcoin. In its fiscal first quarter 2024 earnings, MicroStrategy announced that it held 214,400 Bitcoin as of July 27, 2024, worth $14.6 billion.
The company is working on a blockchain-based decentralized identity system called MicroStrategy Orange, which could revolutionize the digital identity industry if it is put into practical use. MicroStrategy is one of the most prominent blockchain investors and has been reaping strong returns.
MSTR shares are up 137% year to date and over 270% in the past 12 months. It’s currently one of the best-performing blockchain stocks in the world, and adding it to your portfolio could reap big gains in the coming months.
The big share price increase came as first-quarter revenue fell 5% year over year to $115.2 million. However, the company reported in its first-quarter earnings report that subscription revenue increased 22% year over year to $23 million.
Bitcoin’s impressive performance in 2024 goes hand in hand with the massive increase in its price in recent months: since the beginning of 2024, the price of Bitcoin has increased by 54.09%, and over the past 12 months, it has increased by 133.04%.
MicroStrategy boasts the title of being the world’s largest holder of Bitcoin, and Bitcoin’s recent price rally has pushed the price above $65,000, rekindling interest in MSTR stock.
The company’s plans for blockchain technology are also very promising. If you’re looking for blockchain stocks to own in July 2024, MSTR should be at the top of your list.
As of the date of publication, Joel Lim 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 and are subject to InvestorPlace.com’s publication 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.
Joel Lim is a contributor to InvestorPlace.com and a financial content contractor who creates content for several companies, including LTSE and Realtor, as well as financial publications such as Business Insider, Yahoo Finance, Mises Institution and the Foundation for Economic Education.
