The blockchain industry is rapidly expanding, making it a hotbed of investment potential. Astute investors with the right timing could capitalize on the fourth Bitcoin split and the approval of Bitcoin ETF filings to turn investments into significant profits.
This excitement around blockchain technology is not unwarranted, as increased interest, notably from institutional investors, aids in validating the industry. For instance, the Depository Trust and Clearing Corporation recently acquired blockchain-based fintech company Securrency. BlackRock also spearheaded financing worth $47 million for Securitize.
“Yat Siu, co-founder of Animoca Brands, believes that blockchain technology will be widely used in the next 12 to 18 months, mainly in blockchain games. This will make blockchain stocks more appealing as their reliability and use cases grow.”
For investors wanting a slice of this profitable pie, blockchain miners’ stocks present a safe and potentially lucrative option. The reason lies in their aim to enhance their capacity post the fourth Bitcoin halving and their pursuit of AI to safeguard against losses. An added advantage is that their value isn’t heavily influenced by Bitcoin price movements.
Similarly, stocks of companies manufacturing blockchain hardware are stable investments since they do not directly link to coin values.
Riot Platforms recently made a strategic move in acquiring 31,500 next-generation M60S miners from MicroBT. This purchase, worth $97.4 million, is set to enhance the self-mining hash rate of its Rockdale Facility from 12.4 EH/s to 15.1 EH/s by the end of July, thus improving operational efficiency.
Moreover, the safe activation of the Corsicana Facility transformer makes it the world’s largest Bitcoin mining facility. By 2024, Riot intends to add 16 EH/s to its mining capacity.
“Also, if Riot decides to exercise rights under its deal with MicroBT, the Corsicana and Rockdale Facilities will both receive new machines, potentially raising Riot’s overall self-mining hash rate to 41 EH/s by the second half of 2025.”
Even amidst this growth, Riot has been financially solid, reporting a revenue of $79.3 million and a net income of $211.8 million, or $0.82 per share, primarily due to a 131% rise in Bitcoin prices.
CleanSpark, with a predicted upside of 40%, has chosen to improve capacity by upgrading its option to purchase 100,000 Bitmain S21 Pro miners. The new S21 Pro versions, operating at 15 joules per terahash, offer a 14% improvement in efficiency over their predecessors.
The third player in the field, Nvidia, is currently being lauded as the favorite in the AI-powered stock market. After recently executing a 10-for-1 stock split and hiking its quarterly cash distribution by 150% to $0.01 per share, it’s positioned for significant upside.
Nvidia’s high-value GPU production, specifically the Nvidia CMP HX range, positions it as a leader in the crypto mining sector, controlling about 80% of the standalone graphics card market.
Even outside blockchain, Nvidia’s financial success is evident. AI-driven growth accounts for 40% of its data center revenue, made possible by Nvidia’s Hopper GPU computing platform. As a result, the company reported a record $26 billion in the first quarter of fiscal 2025, up 18% from the previous quarter and 262% year-over-year.
“With such moves, Nvidia’s dominant position in the AI chip industry, its significant anticipated free cash flow of $100 billion over the next two years, and the smooth handling of the supply chain, industry analysts are bullish on the business in 2024.”
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