Among the thousands of listed cryptocurrencies, there will be 10% to 20% of projects that will survive in the next five years. However, the idea of cryptocurrencies is far beyond trading and speculation. Blockchain technology will have an impact across industries in the coming years. With the industry still at an early stage of growth, it’s a good time to accumulate cheap blockchain stocks.
Research indicates that more than half of Fortune 100 companies are developing blockchain initiatives to stay competitive. Further, the global blockchain market is likely to be at $17.57 billion in 2023. It’s expected that the market size will swell to $469.49 billion by 2030.
Clearly, the opportunity is big and cheap blockchain stocks can deliver multibagger returns over the next five years. Let’s discuss three cheap blockchain stocks for smart investors to buy and hold.
Block (SQ)
Block (NYSE:SQ) is one of top picks among blockchain stocks. After trading sideways to lower in the last 12 months, SQ stock looks undervalued. With several positive business developments, a rally is impending.
In a recent development, Neha Narula, Director of the Digital Currency Initiative at the MIT Media Lab, joined the company’s Board of Directors. Narula has expertise in Bitcoin (BTC-USD) and open-source technology. The induction underscores the company’s commitment towards blockchain technologies.
I believe that there might be several impending news related to Bitcoin and blockchain. Back in 2021, Jack Dorsey had confirmed that the company is building a Bitcoin hard wallet. Dorsey also seems to be working on a decentralized social media platform. Furthermore, Web5 was announced last year, which will be built on the Bitcoin blockchain.
Clearly, there seems to be several projects at the ‘work in progress’ stage. These initiatives are likely to deliver value in the coming years.
Mastercard (MA)
Mastercard (NYSE:MA) also looks attractive with the company making inroads in the blockchain and cryptocurrency segment. Valuations look reasonable with MA stock trading at a forward price-earnings ratio of 32.3. Further, the stock offers a dividend yield of 0.58%.
Specific to the blockchain, Mastercard announced the launch of Mastercard Multi-Token Network in June 2023. The objective is to “provide a set of foundational capabilities designed to make transactions within the digital asset and blockchain ecosystems secure, scalable and interoperable.”
Further, in April 2023, the company launched Mastercard Crypto Credential. The objective is to “establish a set of common standards and infrastructure that will help attest trusted interactions among consumers and businesses using blockchain networks.”
Clearly, Mastercard is making big moves and is likely to be among the financial companies that establish a strong foothold in the blockchain industry.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) stock has surged higher for year-to-date 2023. However, I remain bullish on the stock for two reasons. First, Standard Chartered (OTCMKTS:SCBFY) believes that Bitcoin is likely to quadruple by the end of 2024. This is not unrealistic considering the point that Bitcoin halving is due in the year.
Further, Riot is pursuing aggressive mining capacity expansion. Once the capacity is installed, the company is positioned for robust revenue and cash flow growth.
To put things into perspective, Riot reported a mining capacity of 10.7EH/s. With the recent purchase of 33,280 miners, the company expects mining capacity to expand to 20.1EH/s by Q1 2024. Riot also has the option to purchase additional miners. If the option is exercised, the company’s capacity will increase to 35.4EH/s by the end of 2024.
Therefore, the company is positioned for massive growth. Further, with a zero-debt balance sheet and a strong liquidity buffer, there is a possibility of diversification for the next leg of growth. RIOT stock is therefore a potential multibagger.
On the date of publication, Faisal Humayun 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.