7 Blockchain Stocks Destined to Disrupt Traditional Industry

With the massive selloff in the crypto market, the best blockchain stocks to buy are now on sale. These stocks play a critical role in the spread of blockchain, a technology that will continue to be strong. According to the research firm, Markets and marketsthe blockchain industry could grow by a whopping 66.2% to reach $94 billion by 2027. With the crypto market expected to shine in the long term, it’s probably the right time to load up the sector.

However, it is important to understand the risks associated with investing in the space. Everything crypto-related is strongly linked to the actions of the Federal Reserve. With the Fed looking to curb inflationary pressures at all costs, the sector will continue to struggle in the meantime. Still, a combination of pick-and-shovel blockchain stocks and pure plays can give you a healthy balance in your portfolio.

Blockchain Stocks: Taiwan Semiconductor (TSM)

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Taiwan Semiconductor (SNEEZE:TSM) is a top contract chip manufacturer with a leadership position in the niche. The chips have a wide variety of uses for several industries, including blockchain with its application-specific integrated circuit (ASIC) chips.

ASIC chips are specifically designed for use in crypto mining, providing the computing power to mine cryptos such as Bitcoin (BTC-USD) and Ethereum (ETH-USD). Also, some of the biggest crypto miners are in the Bitmain source hardware from TSM. As we move forward, TSM’s multi-billion dollar investments in the space will continue to increase market share. Moreover, according to DataIntelothe global ASIC market is likely to grow at a CAGR of 18.6% through 2030. Therefore, there is plenty of upside potential ahead of TSM, especially when crypto markets turn around in the not-so-distant future.

Blockchain Stocks: PayPal (PYPL)

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PayPal (NASDAQ:PYPL) was the first fintech giant to move into the crypto sector. It shed light on Bitcoin transactions back in 2014 and since then has significantly increased its stake in the industry.

The platform now allows users to buy, sell and hold crypto with PayPal, with customers using the Checkout with Crypto service. Moreover, users can also move their coins to other exchanges and hold other cryptos apart from BTC, included Litecoin (LTC-USD) and Ethereum. At the end of 2022, PayPal had a whopping $604 million in crypto holdings. Naturally, with the broad-based market correction, the value of crypto holdings has fallen, but is poised for a massive upside ahead.

Moreover, PayPal operates a robust core business that continues to impress investors despite market headwinds. It rounded off the year with another strong performance during the fourth quarter, with a massive increase in payment volume and net new active accounts. Also, the icing on the cake was its strong guidance for fiscal 2023.

Blockchain Stocks: Riot Blockchain (RIOT)

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Shares in Bitcoin mines Riot Platforms (NASDAQ:RIOT) is up 56% year-to-date, fueling the comeback story. Bitcoin has also trended higher this year, gaining over 30% since the start of the year. Additionally, with a relatively weak dollar and the Bitcoin halving event next year, RIOT stock could rise tremendously in the coming months.

During the pandemic years, Riot experienced triple and even quadrupled revenue growth that pushed its share price to record highs. In the midst of a never-ending crypto winter, however, growth rates have normalized, and then some. Nonetheless, the firm reported $255 million in cash in the most recent quarter with zero debt. If the recovery continues, the firm may increase capacity further.

Mining capacity increased by a whopping 213% from the previous year to 9.7 EH/S, and further expansion will lead to an increase in digital assets and value creation. The company already has plans to increase capacity to 12.5 EH/s by the first half of 2023.

IBM (IBM)

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Tech giant IBM (SNEEZE:IBM) has flown under the radar in the sector. Big Blue was slow to embrace the rapid changes in the sphere, with its peers investing in new and more profitable technology verticals in blockchain, cloud computing, consulting and others. But all that has changed as hardware giant IBM now boasts an equally potent, if not more so, software suite.

Especially with crypto, the strategy revolves around developing a wide range of blockchain solutions. This includes the cloud-based platform, IBM Blockchain, which enables clients to deploy blockchain applications efficiently. The platform enables companies to digitize transactions efficiently through a secured and distributed ledger, which significantly increases efficiency. It also offers services and expertise in several areas, including smart contracts, crypto wallets and central bank digital currencies (CBDC) marketing.

IBM’s software strength continues to improve each quarter, helping to offset losses from hardware. The consulting and cloud business (including blockchain) has grown by double-digit margins over the past few quarters.

MasterCard (MA)

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MasterCard (SNEEZE:MA) was recently named among the 22 financial companies that made Forbes’ 2023 Blockchain 50 list. The list covers the top billion-dollar companies that are putting distributed ledger technology to effective use in the real world. The company’s crypto strategy focuses on integrating blockchain and digital technologies into its robust payment infrastructure. Furthermore, it aims to develop new products and services and collaborate with various exchanges to effectively enable customers to use their digital currencies with millions of merchants worldwide.

However, after the FTX and BlockFi debacle, Mastercard is looking to hit the breaks with new partnerships. Nonetheless, a company spokesperson states, “Our efforts continue to focus on the underlying blockchain technology and how it can be used to help address current pain points and build more efficient systems.”

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) was in the news for all the wrong reasons last summer. The US SEC called out the tech giant for not properly informing its investors about how crypto miners were driving GPU demand. The company eventually had to pay the US SEC $5.5 million in settlement fees, with many investors questioning whether it was a good idea to get into crypto.

During the industry’s boom, Nvidia generated a ton of money from sales to crypto miners. Accordingly, it released new cards intended for crypto mining purposes called cryptocurrency mining processors (CMPs). However, CMP sales have fallen sharply in recent quarters. For the fourth quarter just ended, Nvidia saw a 77% drop in CMP sales from the previous quarter. Nvidia has emerged from its regulatory troubles relatively unscathed and can continue to invest in its CMP divisions for the foreseeable future. The business continues to fire on all cylinders, and its recent exploits in AI point to an even brighter outlook for the company.

HIVE Blockchain (HIV)

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With BTC’s relatively encouraging performance of late, perhaps now is the best time to pick up some stocks on the comeback trail. Another Bitcoin miner poised for robust gains going forward could be HIVE Blockchain (NASDAQ:HIV), which is disappearing into penny stock territory now. In fact, after plunging over 60% in the last 12 months, HIVE stock appears to be deeply undervalued.

In the last quarter, the company reported several positive results despite a sharp drop in sales. It effectively mined 787 BTC during the quarter, representing a 13% gain from last year. The firm’s mining capacity is at 3.33 EH/si last month, an increase of 36.7% from September. If the rally in BTC persists, we could see significant expansion in Hive’s margins in the coming quarters.

At the date of publication, Muslim Farooque 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, subject to the InvestorPlace.com Publishing Guidelines.