Blockchain stocks and the industry are growing so quickly that investors can become multimillionaires if they time their bets right for events like the fourth Bitcoin (BTC-USD) split and the approval of Bitcoin ETF filings.
What’s more, the ongoing interest in blockchain, illustrated by institutional money, is helping to legitimize the sector, which is making people more interested in blockchain stocks. For instance, the Depository Trust and Clearing Corporation has purchased the blockchain-based financial tech company Securrency. BlackRock (NYSE:BLK) is also in charge of the $47 million financing for Securitize.
Also, 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.
Buying stock in miners instead of tokens is the safest and most profitable way to invest in blockchain. This is because miners are looking to increase their capacity after the fourth halving and are expanding into AI to protect themselves against losses after the fourth halving on April 19. At the same time, they are not beholden to the price movements of Bitcoin (BTC-USD).
Also, stocks that make blockchain hardware are safe bets because they are not directly connected to any coin.
Let’s look into it more!
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) recently signed a deal to buy 31,500 next-generation M60S miners from MicroBT, a smart move after the latest Bitcoin halving. These will increase the self-mining hash rate ability of its Rockdale Facility from 12.4 EH/s to 15.1 EH/s by the end of July. The goal of this $97.4 million investment is to make the system more efficient.
Also, the Corsicana Facility transformer was safely turned on, making it the biggest Bitcoin mining facility in the world, with a developed capacity of 1 GW. By the end of 2024, the first 400 MW of growth will possibly add 16 EH/s to Riot’s mining capacity.
In addition, 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.
Amid all of this expansion, RIOT continues to perform financially, reporting $79.3 million in revenue, up from $73.2 million last year and a net income of $211.8 million, or $0.82 per share, thanks to a 131% rise in Bitcoin prices.
Riot’s stock price has fallen despite its strong finances, mainly because mining difficulty increased to $23,034, but the upside is phenomenal, at 78%, with all eight analysts covering RIOT rating it a buy.
CleanSpark (CLSK)
CleanSpark (NASDAQ:CLSK), which boasts a potential upside of 40%, is also primarily focused on increasing capacity, upgrading its prior option to buy 100,000 Bitmain S21 Pro miners, having gone past 17 exahashes per second (EH/s) of operational hash rate.
If all goes according to plan, these additional miners will raise the overall hash rate bought by 17% to 23.4 EH/s. Operating at 15 joules per terahash, the new S21 Pro versions are 14% more efficient than the prior ones.
Earlier this year, the company bought three Bitcoin mining data centers in Mississippi. CLSK also plans to buy 75 MW of Bitcoin mining sites in Wyoming for $18.75 million, with the option to add another 55 MW to these sites.
Amid this expansionary effort, all eyes will be on CleanSpark’s mining capability. It generated 417 Bitcoins in May 2024, adding to the 6,154 Bitcoins it already had. It sold 2.43 Bitcoin for an average price of about $59,000 each and reported a hash rate of 17.97 EH/s.
The performance of its fleet has gone up to 23.05 joules per terahash. CLSK is also growing its campus in Dalton, Georgia, adding about 0.8 EH/s to its hash rate.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is the darling of today’s AI-powered stock market, recently becoming the second highest-valued company in the world after Apple (NASDAQ:AAPL). However, if analyst estimates materialize, there is more upside on offer, particularly after NVDA completed its recent 10-for-1 stock split and increased its quarterly cash distribution by 150% to $0.01 per share.
NVDA makes GPUs for professional crypto mining, notably the Nvidia CMP HX range. Overall, Nvidia controls about 80% of the standalone graphics card market, making it the market leader in GPUs.
Outside of blockchain, Nvidia has had considerable financial success as AI, notably generative AI and huge language models, drives its growth, accounting for 40% of its data center revenue. Success also stems from Nvidia’s Hopper GPU computing platform.
Altogether, Nvidia made a record $26 billion in fiscal 2025’s first quarter, up 18% from the previous quarter and 262% year-over-year.
Because of 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, Bank of America and Susquehanna analysts are business on the business in 2024.
On the date of publication, Faizan Farooque 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 the InvestorPlace.com Publishing Guidelines.