We recently published a list of the 10 best Bitcoin and blockchain stocks to buy right now. In this article, we'll take a look at how Block, Inc. (NYSE:SQ) stands compared to other best stocks to buy Bitcoin and blockchain.
Donald Trump has unveiled plans to make the United States the crypto capital of the world, while also saying he will fire Securities and Exchange Commission Chairman Gary Gensler, who has led the SEC's crackdown on the crypto market. Mr. Gensler sought to regulate a market that he believed consisted at least in part of illegal securities transactions.
Following Donald Trump's victory in the US presidential election, the price of Bitcoin exceeded $80,000 for the first time. Other cryptocurrencies also posted gains, including Dogecoin, the favorite coin of Elon Musk, an ardent supporter of President Trump. On November 29, CNBC reported that Bitcoin is on pace to post a 38% gain in November, which would be its best month since February.
Fundstrat Capital CIO Tom Lee, who has joined CNBC, is confident Bitcoin will close well above $100,000 by the end of the year, while Bitwise's Matt Hougan previously appeared on CNBC. He said the post-election market is a win-win situation. According to him, there is a clear path to $100,000 by the end of 2024, and $200,000 in 2025 is perfectly reasonable considering the trend is up and will remain for some time. As of December 5th, Bitcoin is trading at $101,158.
On the supply side, on the other hand, shortages are becoming more apparent. Metaphid CEO Frank Speiser joined “The Exchange” on November 29th and spoke about the outlook for Bitcoin. He cited record-high ETF inflows, the new administration's intention to amass strategic Bitcoin reserves, and the smaller trades appearing in the market at the same time. . However, there are not enough Bitcoins to meet the current increase in demand.
Recently, Federal Reserve Chairman Jerome Powell made an interesting new statement regarding the U.S. crypto market, calling Bitcoin a competitor to gold rather than the dollar, and considering Bitcoin as a potential replacement for the dollar. He denied the position of currency fans. Powell sees Bitcoin as a speculative asset like gold, rather than a currency.
The new administration is expected to legalize digital assets, with Bitcoin valued at over $100,000, but the market is yet to see how things will play out.
People who use Cash App to pay for goods and services. It highlights the impact of the company's payment tools.
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To create our list of the 10 best Bitcoin and blockchain stocks to buy right now, we used a stock screener and related ETFs to create a list of the most powerful companies. We then shortlisted the top 10 stocks from the list with the most hedge fund holders. Here are the 10 best Bitcoin and blockchain stocks to buy now as of Q3, sorted by hedge fund holders in ascending order.
Here at Insider Monkey we're obsessed with hedge fund stocks. The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Number of hedge fund holders: 64 people
Block, Inc. (NYSE:SQ) is a technology company focused on financial services. The block consists of Square, Cash App, Spiral, TIDAL, and TBD. Square offers an integrated ecosystem of commerce solutions, business software, and banking services to help sellers grow their businesses, and Cash App lets you send, spend, and invest in stocks and Bitcoin. Spiral advances the use of Bitcoin by building and funding free open source projects, and TIDAL is a platform for musicians and their fans. TBD makes it easier to access Bitcoin and other blockchain technologies.
Block, Inc. (NYSE:SQ)'s core business remains strong, with both Square and Cash App seeing strong gross margin increases. The company has also expanded its target market over time. In the US, the market potential is solid, with Square having approximately $130 billion in gross profit opportunities and Cash App having approximately $75 billion in gross profit opportunities. Block's overall profitable growth demonstrates that its ecosystem is efficiently delivering differentiated value to its customers.
Block's gross profit for the third quarter was $2.25 billion, up 19% from the same period last year. Square generated gross profit of $932 million, up 16% year over year, driven by the strength of its software and integrated payments and banking products. Cash App generated gross profit of $1.31 billion, an increase of 21% year over year, driven by strong performance across the Cash App Card, Cash App Borrow and BNPL platforms. Overall, the company achieved year-over-year improvement in all profitability metrics.
Overall, SQ ranks #1 on our list of the best Bitcoin and blockchain stocks to buy now. While we recognize SQ's potential as an investment, we believe some highly undervalued AI stocks have a better chance of delivering higher returns and within a shorter time frame. I'm doing it. If you're looking for highly undervalued AI stocks that are more promising than SQ but trade at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: BlackRock's 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.
Disclosure: None. This article was originally published on Insider Monkey.
