Blockchain technology is the fundamental innovation behind cryptocurrency, but its applications may go beyond the world of Bitcoin and its many competitors.
Some of the largest companies in the world believe blockchain technology could be an important tool for carrying out transactions and exchanging information securely. And the stocks of those companies give investors a way to gain exposure to a novel area of the technology sector without buying cryptocurrency itself.
It’s important to note that not all blockchain stocks are cryptocurrency stocks. Though some stocks in the blockchain space are companies that run crypto exchanges or even mine cryptocurrencies, others are large financial institutions or established technology firms that are developing blockchain products.
6 blockchain stocks to consider
Here are six popular blockchain stocks sold on U.S. exchanges.
Coinbase Global Inc.
Coinbase (ticker: COIN) is a blockchain stock that is deeply linked to cryptocurrency. It is the largest U.S.-based crypto exchange, and in 2021 it became the first to go public in the U.S. Coinbase’s business is built on the trading of cryptocurrencies, and it makes money when people use its platforms to buy and sell digital assets.
Block (ticker: SQ) is a company that is focused largely on payments, including in transactions using cryptocurrency. Block owns Cash App, which allows users to invest in Bitcoin and stocks. It also said in a March 31, 2022, regulatory filing that it held $365.5 million worth of Bitcoin.
IBM (ticker: IBM) is one of the oldest and most established computing companies out there. It’s also moving aggressively into the blockchain space. IBM’s focus on blockchain goes beyond cryptocurrency. Though it does work with some clients on digital assets, IBM also promotes applications of blockchain technology in fields including supply chain management and health care records.
Microstrategy (ticker: MSTR) is a software company with large holdings in Bitcoin that have made it a common option for investors who are seeking exposure to the oldest and most valuable cryptocurrency. The company has continued to buy Bitcoin through both hot and cold market cycles, and said it had more than 129,000 Bitcoin at the end of the first quarter of 2022.
Core Scientific Inc.
Core Scientific (ticker: CORZ) is a computing company that has its hands in a number of blockchain- and cryptocurrency-related businesses. Core runs data facilities that support clients’ blockchain applications. It owns facilities that “mine” cryptocurrencies, helping verify transactions in exchange for crypto rewards. The company also holds significant amounts of Bitcoin and other cryptocurrencies.
Silvergate Capital Corp.
Silvergate (ticker: SI) is a banking and financial company that serves many companies in the blockchain and crypto industries. One of its services is a payment network that helps execute transactions for clients including crypto exchanges, miners and institutions such as private equity firms.
How to find blockchain stocks
The stocks mentioned above represent just a small piece of the universe of companies trying to use blockchain technology. If you’re considering investing in blockchain stocks, you can dig deeper in a couple of ways.
Stock indices: There are a couple of stock indices that are curated to provide a sampling of the economy around blockchain. The Nasdaq Blockchain Economy Index is one example. Looking at the companies listed there, and digging into their businesses, can help turn up blockchain stocks that might appeal to you.
Exchange-traded funds: ETFs allow you to buy a selection of stocks or other investments directly from a public exchange. This can be helpful if you want exposure to several companies without having to assemble a portfolio yourself. But even if you don’t want to buy an ETF, you can look at the holdings of funds focused on blockchain for an idea of what professional investors see as promising companies. One large blockchain ETF is the Amplify Transformational Data Sharing ETF.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.