Currently, it is fair to say that blockchain technology has been at the forefront of many investment forecasts. Investors who prefer dealing in shares can purchase blockchain stocks, without having to invest in digital assets and tokens. In this guide, we will review the 10 best blockchain stocks in 2020.
Best Blockchain Stocks
Advanced Micro Devices (AMD) is a provider of PC components and GPUs for the gaming industry. In the blockchain space, however, AMD is recognised as a market leader for offering GPU devices for the purpose of cryptocurrency mining.
AMD graphic cards are popular among miners who utilise the GPUs to mine cryptocurrencies that are ASIC-resistant. At this point, the AMD is working with players in the blockchain space to provide blockchain compute solutions for a variety of use cases.
Market data for AMD (AMD):
- Share price: $23.29
- PE Ratio: 72.81
- Market Cap: $23.286 Billion
- Earnings per share: 0.3200
- Dividend Yield (%): 0
BTL Group (BTL) is a provider of blockchain-based solutions for enterprises. The company was among the first to embrace the disruptive potential of blockchain technology and act on it. Consequently, BTL developed Interbit, a next-generation blockchain-powered platform.
Interbit will allow business developers and innovators to integrate blockchain capabilities into enterprise applications thereby reducing costs and gaining efficiency.
BTL has an experienced leadership team making it a top contender in the blockchain sector. Moreover, the Interbit blockchain platform was piloted successfully and is currently in the commercialisation phase. The Toronto Stock Exchange-listed company seems to be focusing presently on the energy sector and cross-border transactions.
Market data for BTL Group (BTL):
- Share price: $1.52
- PE Ratio: 0
- Market Cap: $36.281 million
- Earnings per share: 0
- Dividend Yield (%): 0
IBM has fully embraced the blockchain and has become a market leader in providing enterprise blockchain solutions. The company is involved in multiple blockchain projects that aim to solve inefficiency challenges across various industries such as finance, logistics, healthcare, and more.
IBM has developed the Hyperledger Fabric blockchain which operates on a scalable, low latency infrastructure for networks and enterprises. The New York-based technology giant is reputed to spend approximately $160 million annually on blockchain projects across the globe.
Analysts predict IBM’s over 500 blockchain initiatives will have a positive impact on its growth trajectory. Already, IBM is recognised as a prominent dividend payer and was ranked 18th out of all the S&P 500 companies in March 2018.
IBM has also launched a number of African blockchain initiatives, which have been covered by BitcoinAfrica.io.
Market data for IBM (IBM):
- Share Price: $135.23
- PE Ratio(TTM): 14.21
- Market Cap: $122.896 billion
- Earnings per share: $9.52
- Dividend per Yield(%): 4.65
Intercontinental Exchange (ICE) is a leading operator of international exchanges and clearing houses and offers data and listing services. ICE, through its subsidiary, the New York Stock Exchange (NYSE) invested in crypto exchange Coinbase in 2015, making its initial foray into the blockchain space.
In early 2018, ICE announced a new cryptocurrency exchange offering, known as Bakkt, that will go live at some point in 2019. The new platform will offer physically delivered daily futures contracts on bitcoin traded in BTC/USD pair.
Market data for ICE (ICE):
- Share Price: $77.31
- PE Ratio: 17.36
- Market Cap: $44.035 billion
- Earnings per share:$4.45
- Dividend per Yield (%): 1.25
Microsoft (MSFT) is another tech giant that has been exploring blockchain technology. Microsoft’s cloud-based Blockchain-as-a-Service (BaaS) platform aims to secure business transactions by incorporating the blockchain model into enterprise operations.
The Azure blockchain platform is attracting attention from major players and is already being integrated by Nasdaq, AT&T and more. Furthermore, Microsoft is an exclusive partner with India’s BankChain in a banking consortium that is utilising blockchain technology to combat customer fraud, money laundering, and terrorism financing.
Microsoft is also collaborating with Groupe Renault to design the first tamper-proof and secure blockchain solution for automobiles. Since the launch of its cloud-based blockchain solution in 2015, the company has been involved in a number of DLT trials across the globe.
Market data for Microsoft (MSFT):
- Share Price: $107.22
- PE Ratio: 24.87
- Market Cap: $822.614 billion
- Earnings per share: $4.31
- Dividend per Yield (%):1.74
Nasdaq (NDAQ) is a New York-based securities exchange and technology company. Nasdaq has long been recognised as an innovator considering penchant for applying new technology to global securities transactions.
In 2015, Nasdaq announced its first securities transaction on its blockchain powered private share market known as Linq. This made Nasdaq one of the early adopters of blockchain technology among publicly-traded financial services firms.
The company continues to explore blockchain technology as a way to provide efficiencies and ultimately open the private securities market to global investors for the first time.
Market data for Nasdaq (NDAQ):
- Share Price: $86.81
- PE Ratio: 31.80
- Market Cap: $14.233 billion
- Earnings per share: $2.73
- Dividend Yield (%): 2.03
Northern Bitcoin(NB2) is a leading bitcoin mining company. The German company aims to provide an entry into the world of bitcoin and blockchain technology, as well as utilise renewable energy sources in the design and maintenance of blockchain infrastructure.
On October 5, 2018, Nothern Bitcoin commenced trading on the Frankfurt Stock Exchange, opening up its business model and growth prospects to global investors. The company currently operates a mining farm in Norway and offers software to control mining computing power.
In a press release announcing the listing the CEO of Nothern Bitcoin, Mathis Schultz, stated,
“With the Xetra listing and the start of trading in Frankfurt, we are now taking decisive steps within the capital market to accompany our rapidly growing operating business. As one of the leading companies in the Bitcoin blockchain infrastructure sector, we see it as a great opportunity to present our business model and its growth prospects to a larger circle of investors to whom they are now accessible.”
Market data for Northern Bitcoin (NB2):
- Share Price: 18.30 EUR
- PE Ratio: 0
- Market Cap: 130.322 million EUR
- Earning per Share: -0.24 EUR
- Dividend Yield (%): 0
Nvidia (NVDA) is a leading GPU provider and chips manufacturer. In 2017, the company enjoyed a surged in sales of its high-end GPUs, which were used to mine digital currencies. The bitcoin bull market created a demand for quality graphics cards, which NVDA sought to satisfy by releasing several GPUs dedicated to cryptocurrency mining.
As a testament to the growing business segment, Nvidia generated over $100 million in quarterly revenue from blockchain in October 2017. However, with the decline in crypto prices in 2018, the company reported a slump in the sales of mining hardware.
While this would not significantly impact its bottom line, NVDA shifted its focus to other profitable aspects of its business. That being said, the company still sees the potential for blockchain technology, especially if they can succeed in bridging aspects of blockchain with the company’s growing AI initiatives.
Market data for Nvidia (NVDA):
- Share Price: $152.34
- PE Ratio: 20.67
- Market Cap: $94.349 billion
- Earning Per Share: $7.4830
- Dividend Yield (%): 0.43
Oracle (ORCL) is a technology giant that has started to provide a cloud-based blockchain as-a-service solution. Oracle’s Blockchain Cloud Service (BCS) utilises blockchain technology to enable applications to business to securely perform identity authentication, single-sign-on, share information, create smart contracts and more. The aim of BCS is to reduce costs and hasten transactions, thus creating value for businesses.
Oracle announced a partnership with Infosys in 2018, to develop BCS for businesses, which will, in turn, facilitate private transactions and database interoperability for enterprises.
Market data for Oracle (ORCL):
- Share Price: $51.35
- PE Ratio: 51.25
- Market Cap: $184.291 billion
- Earning Per Share: $1.00
- Dividend Yield (%): 1.48
Overstock (OSTK) was the first US online retailer to accept bitcoin payments recognising its potential to revitalise its business. Subsequently, the company has become a major investor in blockchain companies through its subsidiary, Medici Ventures.
Medici Ventures has specifically backed promising blockchain startups that work in areas such as voting, digital identity, finance etc. One such venture is the launching of tZero, a trading platform for tokenised securities. Moreover, the company recently conducted a successful digital securities token transfer using the Ravencoin blockchain.
Overstock also signed a memorandum of understanding (MoU) with the Zambian Government through its Medici Land Governance (MLG) subsidiary. The agreement will see MLG develop a blockchain-based land registry for Zambia.
Interestingly, with Overstock’s heavy involvement in the crypto space, its stocks have sometimes mirrored bitcoin’s fortunes. The OSTK stocks rose by an unprecedented 130 percent in 2017 before losing 30 percent of the value the following year.
Market data for Overstock (OSTK):
- Share Price: $18.14
- PE Ratio: 0
- Market Cap: $583.13 million
- Earning Per Share: -$8.98
- Dividend Yield (%): 0