InvestorPlace – Stock Market News, Stock Tips and Trading Tips
The rapid growth of blockchain shares associated with public companies related to cryptocurrency is explained by the hopes of market participants for the imminent approval of Bitcoin ETF. For example, shares of Grayscale Bitcoin Trust (OTCMKTS:GBTC) has grown by 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. During the same period, shares of Nvidia (NASDAQ:NVDA), one of the main assets in the S&P500, showed a growth of 198%, while the index itself grew by 9%.
Embracing blockchain technology, especially in the financial sector, could provide a great advantage for businesses over their conventional counterparts in handling payment transactions. In addition, brokerage firms providing digital assets could witness increased customer attraction compared to exchanges dealing only in traditional assets such as stocks and bonds.
The rapid growth of blockchain shares associated with public companies related to cryptocurrency is explained by the hopes of market participants for the imminent approval of Bitcoin ETF. For example, shares of Grayscale Bitcoin Trust (OTCMKTS:GBTC) has grown by 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. During the same period, shares of Nvidia (NASDAQ:NVDA), one of the main assets in the S&P500, showed a growth of 198%, while the index itself grew by 9%.
Embracing blockchain technology, especially in the financial sector, could provide a great advantage for businesses over their conventional counterparts in handling payment transactions. In addition, brokerage firms providing digital assets could witness increased customer attraction compared to exchanges dealing only in traditional assets such as stocks and bonds.
Block, Inc. (SQ)
Source: Sergey Elagin / Shutterstock.com
Block (NYSE:SQ), the fintech company led by former Twitter CEO Jack Dorsey, experienced a remarkable increase in its share price in Q3. SQ surged 20% and topped $52 after a positive Q3 earnings report. Formerly known as Square, Block made 24% YoY net revenue growth, reaching $5.6 billion. This remarkable performance was mainly driven by Cash App, the company’s flagship product. The program witnessed a 38% year-over-year growth in Bitcoin revenue, accounting for more than 50% of the company’s Q3 net income, soaring to $2.4 billion.
Cash App works as a versatile mobile payment service enabling fiat transactions, Bitcoin trading and stock investments. Earning $3.6 billion and $985 million in gross profit, Cash App showed great growth, climbing 34% YoY.
Block’s secondary payment platform, Square, reported $1.98 billion in revenue, representing an 8% YoY increase. Block’s focus on growing Bitcoin utilization within its business ecosystem, primarily through the Block ecosystem, holds the potential to establish the company as a hub for B2C cryptocurrency transactions. The integration of the Bitcoin Lightning network into Cash App in 2022 significantly simplified Bitcoin transfers, reinforcing the company’s vision of a globally trusted open money transfer network supported by Bitcoin.
Nvidia (NVDA) and Advanced Micro Devices (AMD)
Source: Shutterstock
Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) are prominent chipmakers who share a striking success story within their niche markets, particularly notable blockchain stocks for their innovation. These industry giants specialize in creating graphics processing units (GPUs), initially acclaimed for their prowess in enhancing high-end gaming graphics. However, these GPUs now serve a broader purpose, powering critical applications for AI, data storage and digital currencies.
The computational demands of cryptography and blockchain development align perfectly with the capabilities of GPUs. In the past, the increased interest in cryptocurrencies spurred a rise in Nvidia and AMD shares, driven by miners seeking GPUs for digital asset creation. GPUs remain integral tools in the creation and management of crypto assets. In particular, Nvidia introduced a dedicated line of chips expressly designed for crypto mining, emphasizing their commitment to this burgeoning market.
Both Nvidia and AMD are strategically positioning themselves as chip technology leaders through strategic acquisitions. While Nvidia’s attempt to acquire ARM Holdings ran into obstacles, AMD successfully completed its acquisition of Xilinx(NASDAQ:XLNX) in February 2022. Regardless of these acquisitions, both companies are poised to strengthen their foothold in the semiconductor industry, leading the development of emerging technologies such as blockchain ledgers.
Mastercard (MA)
Source: David Cardinez / Shutterstock.com
Mastercard (NYSE:MA), renowned in the payment industry, is now extending its focus to blockchain technology with the introduction of the Multi-Token Network (MTN). This initiative aims to streamline transactions within the blockchain realm, starting with the exploration of tokenized bank deposits and gradually embracing stablecoins and central bank digital currencies.
At the heart of the MTN initiative is the transformation of traditional bank deposits, imbuing them with the programmability and accessibility inherent in crypto assets. This innovative approach involves converting bank account funds into digital assets on the blockchain, mirroring the functionality witnessed in the dynamic crypto space.
Aligned with MTN’s launch, Mastercard is stepping up its blockchain efforts with its Crypto Credentials, a blockchain analytics tool introduced earlier in April. By ensuring transaction compliance with strict regulatory standards such as anti-money laundering, this technology aims to support regulatory compliance. Raj Dhamodharan, Mastercard’s head of crypto and blockchain, envisions multiple applications, including the facilitation of seamless cross-border transactions using tokenized bank deposits between institutions in different nations.
Mastercard’s strategic entry into blockchain signifies a firm commitment to innovate within this landscape, aiming to optimize the efficiency of traditional banking structures. For those considering investments in blockchain stocks, Mastercard’s initiative presents a promising opportunity. The current trading position of MA stock, trading below its analyst price target, suggests potential for substantial market expansion and robust growth in the foreseeable future.
At the date of publication, Julia Magas did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
Julia Magas is a writer who covers the latest trends in finance and technology. Her work is published in a number of financial media such as Nasdaq, Cointelegraph, Investing, SeekingAlpha, FXEmpire and Beincrypto. She primarily covers cryptocurrency and blockchain technology with a focus on market performance, innovations and trends.
More from InvestorPlace
The post The 4 Best Blockchain Stocks (Beyond Cryptocurrency) appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.