Blockchain technology is expected to bring significant changes throughout sectors, which includes business, healthcare, etc. Top bitcoin and blockchain stocks are expected to accomplish this through enabling decentralized, transparent, and safe transactions and interactions. With time, blockchain technology is expected to evolve. Experts believe that blockchain technology cannot be considered as a static nor monolithic one. This is because it evolves and adapt to various challenges and opportunities which arise with time. Experts are of the opinion that 2023 and 2024 should see blockchain trends impacting fields such as finance, art, gaming, AI, sustainability, etc. While we talking about trends, readers should know that decentralized finance has been categorised as a prominent and widely accepted development in the field of blockchain technology.
Top bitcoin and blockchain stocks explaindecentralized finance as an ecosystem consisting of financial services and products which are developed upon blockchain platforms such as Ethereum, Binance Smart Chain, Solana, etc. Target is to make financial services more accessible and transparent for users. World has already seen this trend revolutionizing financial services sector. Financial services sector saw strong growth and innovation in 2020, and experts believe this trend to continue across 2023 and 2024. On the related note, advent of non-fungible tokens (NFTs) gave fresh marketplace for artists and collectors. Such types of digital assets, which are powered by blockchain technology, provide ownership and versatility.
Crypto experts are quite optimistic about Bitcoin and they believe that it can maintain position around $31,000 and can touch $60,000 by 2023 end.
With this thought, let us quickly have a look at some of the top bitcoin and blockchain stocks having healthy growth potential.
Top Bitcoin and Blockchain Stocks to Buy
- Coinbase Global, Inc.
- PayPal Holdings, Inc.
- Advanced Micro Devices, Inc.
1. Coinbase Global, Inc.
Coinbase Global, Inc., which is being branded as Coinbase, is an American publicly traded company operating a cryptocurrency exchange platform.
In 2Q23, the company’s continued financial discipline led to $97 million of net loss and positive $194 million of adjusted EBITDA. Total revenue of the company came in at $708 million, exhibiting a fall of 8% quarter-on-quarter, with net revenue coming at $663 million, down by 10% quarter-on-quarter. Transaction revenue performance underlying these results exhibits multi-year lows in crypto volatility.
The company continues to prioritize achieving regulatory clarity for this industry. In the previous quarter, it expressed optimism that is should see progress on crypto legislation, and the company was encouraged by recent proposed legislation which exhibits some signs of progress.
In July, the company saw ~$110 million of transaction revenue. It expects 3Q subscription and services revenue of minimum $300 million and 3Q transaction expenses as a percentage of net revenue is expected to be in mid-teens. The company anticipates 3Q technology & development and general & administrative expenses of between $575 million- $625 million. Finally, the company continues to target improved FY23 adjusted EBITDA in absolute dollar terms in comparison to FY22.
2. PayPal Holdings, Inc.
PayPal Holdings, Inc. operates technology platform, enabling digital payments globally for both sellers and consumers. The company has introduced Checkout with Crypto, offering customers with secure and convenient method to initiate payments through the usage of cryptocurrencies, such as Bitcoin. The company launched stablecoin known as PayPal USD, which is a digital currency and is backed by U.S. dollar deposits, short-term U.S. Treasuries, and such sort of cash equivalents.
Total payment volume (TPV) of the company came in at $376.5 billion in 2Q23, exhibiting a rise of 11% on spot and FX-neutral (FXN) basis. Net revenues of the company were $7.3 billion, growing by 7% and 8% on FXN basis. The company saw a solid quarter, with revenues coming at high end of guidance. It continues to invest in its key initiatives while, at the same time, focus is on operating expense commitments. The company’s agreement to sell European buy now, pay later receivables to KKR should help optimize its balance sheet.
For 3Q34, it anticipates net revenues of ~$7.4 billion considering current exchange rates, growing by ~8% on a spot and FXN basis. GAAP earnings per diluted share should be in the range of $0.85-$0.87 in comparison to $1.15 in prior year period. However, for FY23, its GAAP earnings per diluted share should be ~$3.49 in comparison to $2.09 in FY22.
3. Advanced Micro Devices, Inc.
The company has resulted innovation in high-performance computing, graphics and visualization technologies. These have been categorised as building blocks for gaming, immersive platforms and data center.
In 2Q23, the company saw revenues of $5.4 billion, gross margin of 46%, operating loss of $20 million and net income of $27 million. It saw strong results in 2Q23 as 4th Gen EPYC and Ryzen 7000 processors ramped significantly. Its Data Center segment revenue came in at $1.3 billion, exhibiting a fall of 11% year-over-year mainly because of lower 3rd Gen EPYC processor sales as Enterprise demand was soft and Cloud inventory levels were higher at some customers.
Client segment revenue came at $998 million, exhibiting a fall of 54% year-over-year because of reduced processor shipments due to weaker PC market and significant inventory correction throughout PC supply chain. In comparison to 1Q23, revenue went up by 35% because AMD Ryzen™ 7000 Series CPU sales saw a significant increase, and PC market conditions saw improvement.
In 3Q23, it expects its Data Center and Client segment revenues to each increase by double-digit percentage in comparison to 2Q23 because of increased demand for EPYC and Ryzen processors, which might get offset by Gaming and Embedded segment declines. For 3Q23, it expects revenue of ~$5.7 billion, plus or minus $300 million, and non-GAAP gross margin of ~51%.
Conclusion
Decentralized finance saw exponential growth and innovation since 2020. Total value locked (TVL) in this protocol grew from $20 billion at end of 2020 to $175.5 billion at 2021 end. Integration of Blockchain and Artificial Intelligence seems to be a promising trend, offering significant growth opportunities to top bitcoin and blockchain stocks. Another noteworthy trend is Central Bank Digital Currencies development. CBDCs target to improve payment system efficiency, increase financial inclusion, and maintain stability monetary conditions.
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