These three blockchain stocks look well-positioned to capitalize from some strong tailwinds forming in the market
Republican presidential nominee Donald Trump has officially selected JD Vance has his running mate for the upcoming November election. With this appointment comes many questions around the new vice presidential candidate’s stance on taxation, business and certain sectors of the economy such as crypto.
Vance has certainly put forward an agenda that mirrors Trump’s, with plans to cut taxes, increase spending, and shift focus from allies like Ukraine and Taiwan. He also highlighted his interest in crypto, referencing his NFT collections and teasing a new release.
Vance, 39, is an Ohio Senator in his first term. He served as a Marine combat correspondent, attended Ohio State University and Yale Law School, and joined Peter Thiel’s Mithril Capital in 2015. Vance gained fame with his 2016 memoir, “Hillbilly Elegy,” and founded his venture capital firm, Narya, in 2019.
Thiel, who invested $15 million in Vance’s Senate campaign, is joined by tech figures like Marc Andreessen, Ben Horowitz, Joe Lonsdale, Doug Leone, David Sacks, and the Winklevoss twins in supporting the Trump/Vance ticket. Recently, Elon Musk endorsed Trump, pledging $45 million monthly to a pro-Trump super PAC.
Due to Vance’s stance and reputation as a pro-crypto individual, these blockchain stocks below could see a boost if he wins.
Coinbase (COIN)
Source: Primakov / Shutterstock.com
Coinbase (NASDAQ:COIN) aims to boost economic freedom by modernizing the financial system and making crypto assets accessible to over 1 billion people. The platform supports trading, spending, staking, and safekeeping global transfers. Moreover, the company is set to announce its Q2 2024 financial report on August 1 after the market closes.
Coinbase is known as a leader in traditional finance innovation that integrates cryptocurrencies into mainstream usage. Holding almost all U.S crypto exchanges, Coinbase is expected to be among the fastest growers in terms of revenue, with analysts projecting top-line growth near 100%.
The company has seen impressive growth in recent quarters, with the company’s Q1 earnings per share of $4.40 trouncing estimates of $1.09 by more than four-fold. Revenue also surged past estates, as transaction activity doubled among retail investors and increased 133$ by institutional investors.
If these trends accelerate as more investors pile money into a regulated and stable crypto sector, Coinbase could be among the best beneficiaries of this trend to own.
Marathon Digital (MARA)
Source: rafapress / Shutterstock.com
Marathon Digital (NASDAQ:MARA) stands out as a top Bitcoin (BTC-USD) mining company. That’s partly due to Marathon’s low output decay post-halving and advanced technologies like two-phase immersion cooling. The company’s venture into mining other non-Bitcoin tokens, as well as its substantial Bitcoin holdings, could significantly enhance revenue and book value in a rising market environment.
MARA stock could see significant returns due to Bitcoin’s expected price performance moving forward following a Trump/Vance win. Supportive expansionary policies from regulators and the company’s increasing operational hash rate (which surged 106% year-over-year) are key catalysts to focus on. The company also has an abundant cash reserve of $1.5 billion, and a new Kaspa (KAS-USD) mining venture that puts the company in position for growth.
MARA shares rose on Friday due to Bitcoin’s price surge to $66,000. Moreover, Marathon is also set to report its Q2 2024 financials on August 1.
Grayscale Bitcoin Trust (GBTC)
Source: T. Schneider / Shutterstock.com
Recently announcing its record date of July 30, 2024 for distributing shares of its new “mini” BTC trust, Grayscale Investments (NYSEARCA:GBTC) will surge once Vance sits as the VP. Although the Grayscale Bitcoin Mini Trust still has pending regulatory approval, the trust will be listed on NYSE Arca under the BTC ticker. GBTC will issue the BTC trust shares on its record date. Grayscale will file additional details with the SEC following the record date.
Starting July 31, GBTC will trade on NYSE Arca. GBTC shareholders will receive proportional shares in the Mini Trust, maintaining their Bitcoin holdings across two funds. James Seyffart from Bloomberg noted that the spinoff would divide existing investments between the original fund and the new ETF.
On the date of publication, Chris MacDonald 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 writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Credit: Source link