A major consideration when choosing blockchain stocks is regulatory risk. Due to its young age, the blockchain industry does not yet have clear regulations. Understanding how future regulation could affect your investment is essential.
For example, JD Vance, Trump’s nominee for running mate in the upcoming 2024 presidential election, is pro-crypto. He has received backing from tech billionaires like Peter Thiel and the Winklevoss twins.
This could be huge for the industry if Trump wins the upcoming election. Such a victory could bode well for the future of crypto regulation.
With this in mind, these blockchain stocks could benefit from pro-crypto regulation. They have all the characteristics of a stock that could shoot for the moon. These stocks performed quite well in 2024 and positive regulation could provide another boost.
With rising interest amongst institutional investors, these blockchain stocks could receive a huge boost in the future.
Nu Holdings (NU)
Nu Holdings (NYSE:NU) is the world’s biggest digital banking platform outside of Asia. Today, it has nearly 100 million customers in South and Central America.
Nu Holdings is changing the financial system in the Americas, which is powered by proprietary blockchain technology.
The company has launched many blockchain-powered services to date. A recent example is its partnership with Lightspark.
Through this deal, it aims to improve its customers’ banking experience using the blockchain. Previously, it has worked with Fireblocks on a slew of blockchain offerings.
In the first quarter of fiscal 2024, Nu Holdings reported revenue of $2.7 billion, a 64% year-over-year rise. In the same quarter, deposits rose 53% to $24.3 billion compared to the previous year. Net income rose to $378.8 million compared to $141.8 million the previous year.
In Brazil, Nu Holdings stated that it had net monthly additions of 12.3 million users, making it the fourth biggest financial company in the country by user base.
Based on the positive financial results, NU stock has seen its price rise 49% thus far in 2024, signaling possible future growth.
Considering its positive financial performance and growing blockchain use cases, Nu Holdings is one of the most lucrative blockchain stocks. Investing in NU exposes investors to the promising blockchain sector and the fintech industry.
Coinbase Global (COIN)
Coinbase Global (NASDAQ:COIN) is a leading cryptocurrency exchange in the U.S. Its services are available to both institutional and retail investors. The company’s most popular services are Coinbase Wallet, USD Coin and Coinbase Pro.
After the Securities and Exchange Commission approved Exchange Traded Funds on January 10, COIN stock experienced a major price surge. On July 22, the commission approved Ethereum Exchange Traded Funds. The new approvals have been a significant boost for COIN stock.
Coinbase is the leading platform American investors use to gain exposure to the blockchain sector. Despite this, the company still has some legal challenges. It is working to clear its name from accusations of being an unregistered securities exchange.
In its first quarter fiscal 2024 results, Coinbase announced revenue went up 72% quarter over quarter to $1.6 billion, a net income of $1.2 billion and an adjusted EBITDA of $1 billion. At the end of the quarter, the company had $1.1 billion in U.S. resources, which is excellent liquidity.
The stock has performed exceptionally well in 2024, rising 45.58% year to date and an impressive 131.61% in the past 12 months. Following the Securities and Exchange Commission’s approval of new crypto Exchange Traded Funds, Coinbase will likely see increased interest from institutional investors.
The result could be even greater returns for investors in this promising stock. While the stock has risen significantly in recent months, it is still trading at a significant discount to its all-time high of over $342 per share, achieved in November 2021.
Coinbase’s recent performance, coupled with recent regulatory developments, makes it a lucrative stock to hold. If you are looking for blockchain stocks to invest in, COIN should be a top priority.
MicroStrategy (MSTR)
MicroStrategy (NASDAQ:MSTR) is a well-known enterprise analytics company with a significant stake in Bitcoin. In its first quarter fiscal 2024 results, MicroStrategy announced that it held 214,400 Bitcoin worth $14.6 billion as of July 27, 2024.
The company is working on a blockchain-powered decentralized identity system called MicroStrategy Orange. Once live, it could revolutionize the digital identity industry. MicroStrategy has seen positive returns as one of the most prominent blockchain sector investors.
MSTR stock is up 137% year-to-date and over 270% in the past 12 months. It is by far one of the best-performing blockchain stocks in the world right now. Adding this stock to your portfolio could yield massive returns in the coming months.
The massive increase in its share price comes amidst a 5% year-over-year decline in first-quarter revenue to $115.2 million. However, the company reported a 22% year-over-year increase in subscription revenue to $23 million in the first quarter results.
Its remarkable performance in 2024 can be closely tied to the massive increase in Bitcoin’s price in recent months. Since the start of 2024, Bitcoin’s price has increased by 54.09%, while in the past 12 months, it has increased by 133.04%.
MicroStrategy proudly holds the title of the biggest corporate holder of Bitcoin worldwide. The recent price rally of Bitcoin, which has pushed its price above $65,000, has led to a resurgence in interest in MSTR stock.
Its plans for blockchain technology are also quite promising. If you are looking for blockchain stocks to hold in July of 2024, MSTR should be at the top of your list.
On the date of publication, Joel Lim 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.