Top 3 Blockchain Stocks To Buy Before Crypto Market Soars Again

After experiencing a downturn due to fund withdrawals and various technical difficulties, the cryptocurrency industry seems ready to climb up again, which could end up bringing great returns for investors in blockchain stocks.

Jerome Powell, the Chair of the Federal Reserve, announced on Friday that the latest inflation data aligns with the Federal Reserve’s goals. Although Powell acknowledges the challenges on the road to overcoming inflation, he indicated that progress is being made towards achieving the Fed’s inflation target of 2%.

This statement is crucial as it suggests the Federal Reserve is unlikely to consider interest rate hikes, which could negatively impact cryptocurrency markets.

However, the direct purchase of digital currencies carries considerable risks. Alternatively, investors might consider reducing exposure to these risks by investing indirectly, such as through blockchain-oriented stocks.

Top 3 Blockchain Stocks To Buy in April 2024 

1. Coinbase (COIN)

Coinbase (NASDAQ:COIN), a leading crypto wallet and exchange service, stands out as one of the top blockchain stocks for investors to consider.

While not a pure blockchain company, it has facilitated the entry of millions into the somewhat murky world of cryptocurrency investing. Despite facing legal and regulatory challenges, the significance of Coinbase makes its stock an interesting option for investors.

Investors should note, however, that the investment case for Coinbase closely tracks the volatile world of cryptocurrency speculation. A quick glance at the company’s financials might initially cause alarm.

For instance, in the fourth quarter of 2022, Coinbase reported a loss of $2.46 per share, slightly better than the anticipated loss of $2.52 per share but still far from stellar.

Yet, a year later, the narrative has shifted. In the fourth quarter of 2023, Coinbase announced earnings per share (EPS) of $1.04, far exceeding expectations of just two cents. In summary, as long as the cryptocurrency market remains alive and well, Coinbase’s stock is likely to continue defying skeptics.

2. Robinhood (HOOD)

Robinhood (NASDAQ:HOOD), while not strictly a blockchain-centric firm, should definitely be on the radar as cryptocurrency sentiment increases.

This financial services powerhouse has garnered attention by making virtual currencies accessible to eager retail investors, mirroring Coinbase’s strategy. Its platform, which cleverly integrates gaming elements, has been particularly popular among young users.

The synergy between the interest in both high-performing stocks and decentralized assets has propelled Robinhood to an impressively strong earnings record.

Highlighting this achievement, Robinhood reported earnings per share of 3 cents in both the second and fourth quarters of the previous year, defying expectations of a 1-cent loss. Over the last four quarters, the company has averaged an earnings surprise of 204.15%.

Looking ahead to fiscal year 2024, industry analysts are optimistic, projecting an EPS of 27 cents with revenue forecasts reaching $2.19 billion. This represents a substantial rebound from the prior year, which saw the company incurring a loss of 61 cents on revenues of $1.86 billion.

As cryptocurrencies continue their uptrend, Robinhood’s stock is well-positioned to benefit from this momentum, which makes it an appealing option for speculative investors.

3. CleanSpark (CLSK)

Lastly, CleanSpark (NASDAQ:CLSK) comes as the only blockchain-genuine candidate in our roundup of blockchain stocks to purchase.

Distinct from your typical cryptocurrency miner, CleanSpark operates data centers that prioritize low-carbon power sources. This approach is particularly interesting, considering its focus on Bitcoin, a digital asset known for its significant energy consumption.

In essence, CleanSpark’s innovative, more eco-friendly mining technique could revolutionize the industry by reducing the environmental cost of mining such an energy-intensive asset.

However, investing in CleanSpark carries a high level of speculation. The company’s financial performance is unpredictable, with significant fluctuations in its quarterly results. For instance, in the third quarter of the previous year, CleanSpark reported a substantial loss of 63 cents per share, far exceeding the anticipated loss of 13 cents per share.

Yet, for those willing to attribute these “crazy” financial results to the growing hassles of an ambitious company, then the outlook for fiscal year 2024 offers a glimmer of hope. Analysts predict an earnings per share of 75 cents on a revenue forecast of $432.67 million, but these outcomes rely greatly on the future trajectory of the crypto market.

Anyhow, this represents an improvement from the previous year’s figures, where the company endured a loss of $1.33 per share on revenues of $168.41 million.