2019 was a formative year for blockchain technology. 2020 is shaping up to be another interesting year as well, leading many investors to ask the question, “What are the best blockchain technology stocks to invest in?”
As Boston Consulting Group’s Zia Yusuf notes in Barron’s, “The combination of blockchain, the internet of things (IoT) and artificial intelligence (AI) for optimizing supply chains is profoundly exciting. In certain industries with complex supply chains and thin margins, applying the combination of these emerging technologies to logistics and supply functions has the potential to be a real difference maker.”
In its 2020 Global Blockchain Survey, Deloitte states that 55 percent of companies surveyed consider blockchain technology to be one of their top five strategic priorities, while 36 percent of respondents said they are planning at least US$5 million in spending on blockchain technology over the next 12 months.
With JPMorgan (NYSE:JPM) announcing the release of its JPM Coin and users now able to pay for services with crypto assets on Airbnb and Netflix (NASDAQ:NFLX), the business sphere continues to take shape.
Investing in blockchain technology stocks
As blockchain technology continues to grow, there will be many opportunities for investors. Blockchain is not a physical asset that can be purchased, so many investors are turning to other ways of getting exposure to the blockchain space. There are a number of options for investing in blockchain, including in a blockchain exchange-traded fund or a blockchain stock.
Below are just a few blockchain technology stocks for investors to consider. The stocks are listed in alphabetical order, and had market caps above $10 million at the time of publication.
Blockchain technology stocks to consider
1. DigitalX (ASX:DCC,OTC Pink:DGGXF)
Market cap: AU$12.72 million; current share price AU$0.02
DigitalX provides services that include initial coin offering advising, token advising and AirPocket, which allows the secure transfer of funds. In addition to these services, DigitalX runs an unlisted fund of the top crypto assets that has shown superior returns over the top 10 crypto index, according to the company.
DigitalX also operates Coincast Media, a blockchain media service that provides news and educational content for a core marketplace of viewers aged 18 to 34.
Most recently, the blockchain tech company launched a bitcoin fund, which can be accessed through an unlisted fund structure at a low cost. DigitalX has invested roughly AU$2.75 million in the fund.
2. HIVE Blockchain (TSXV:HIVE,OTCQX:HVBTF)
Market cap: C$116.33 million; current share price C$0.34
HIVE Blockchain’s goal is to connect blockchain and cryptocurrencies to traditional capital markets.
In January of last year, HIVE Blockchain received regulatory approval to increase its ASIC capacity by 50 percent, reaching a mining capacity of 300 petahashes. In conjunction with Genesis Mining, HIVE mines cryptocurrencies, including bitcoin and ethereum, to further expand its crypto portfolio.
In its latest quarterly results release, put out in March, HIVE reported net income of US$3.4 million and income from digital currency mining of US$5 million. The mining firm mined a total of 127 bitcoin, 23,175 ethereum and 33,190 ethereum classic in the period.
3. Kontrol Energy (CSE:KNR,OTCQX:KNRLF)
Market cap: C$13.63 million; current share price C$0.46
With energy-saving technology in over 500 buildings and over 1 billion kilowatt hours of electricity reduced annually, Kontrol Energy’s software is designed to improve energy efficiency and reduce greenhouse gas emissions. It provides services for commercial buildings, manufacturers and more.
Kontrol Energy and Toyota Tsusho Canada (TTCI) signed a joint venture in 2019 under which Kontrol Energy will provide smart factory solutions to TTCI’s factories. At the time, TTCI said it was working towards improving energy management using Kontrol Energy’s IoT hardware and technical support.
In May, Kontrol Energy announced a binding agreement to acquire a building energy and equipment monitoring company that operates a recurring revenue platform. The acquisition will give the company the ability to focus on efficiently scaling recurring revenues in software, IoT and services across its larger combined customer base and building footprint.
4. Limelight Networks (NASDAQ:LLNW)
Market cap: US$891.46 million; current share price US$7.45
Limelight Networks is an American company that provides a content delivery network and value-added services aimed at helping content owners improve streaming quality, download speeds and advertising capabilities. Such services are in high demand with more people at home during the COVID-19 pandemic.
In its Q1 2020 financials, the company reported revenues of US$57 million, up 32 percent year-over-year.
5. Northern Data (FWB:NB2,ETR:NB2)
Market cap: 584.04 million euros; current share price 75.40 euros
Previously known as Northern Bitcoin, Northern Data is a bitcoin-mining establishment that runs exclusively off of hydropower. The company focuses on sustainable mining through the use of 100 percent green mining technology.
The company’s data center is situated within a Norwegian mountain, where a nearby fjord is used to help cool down its computers. Northern Data applies 39,690 ASIC chips and 2,835 terahashes to each container it operates. It currently runs over 210 miners. The company hit a milestone in 2018 when it built its own mining pool, further propelling and scaling its growth.
Recently the company announced a collaboration with Canaan (NASDAQ:CAN), one of the leading blockchain technology companies in the world. They will work together in the areas of AI development, blockchain technology and data center operations.
6. Overstock.com (NASDAQ:OSTK)
Market cap: US$1.06 billion; current share price US$26.23
Overstock.com was among the first US retailers to accept bitcoin. Overstock.com was founded in 1999 with the name Deals.com. In 2018, the company introduced tZERO, a security token trading platform, allowing accredited investors to trade tokens through broker-dealer Dinosaur Financial Group. The tZERO security token offering in August 2018 raised US$134 million.
In addition to its tZERO token, Overstock.com has developed Medici Ventures, a subsidiary that invests in blockchain ventures spanning from finance to agriculture. In December 2018, Medici Ventures acquired a US$2.5 million stake in GrainChain, an agricultural blockchain company that tracks the distribution of harvest production.
Not long ago, Medici Ventures defended Voatz, a keiretsu company of Medici Ventures, and its use of mobile voting technology. “Voatz is the first and only voting app available for consideration to election officials exploring additional technology for better voting access,” stated Jonathan Johnson, CEO of Overstock.com and president of Medici Ventures. Johnson believes that the technology protects against voter fraud and ensures the privacy of every voter.
Overstock.com reported Q4 2019 revenues of US$370.9 million.
7. RESAAS Services (TSXV:RSS,OTCQB:RSASF)
Market cap: C$26.85 million; current share price C$0.39
RESAAS Services provides the real estate industry with cloud-based, blockchain-powered software. Connecting over 460,000 real estate brokers worldwide, RESAAS’s RealTime MLS blockchain platform allows brokers to share listings and referrals in real time.
In February 2018, RESAAS acquired Real-Block, a Toronto-based blockchain firm. Later that year, a licensing agreement was secured with the Toronto-based REIN Group of Companies, which has over 155,000 registered investors. Realty Universal, with a network of over 6,000 brokers, additionally signed a licensing agreement with RESAAS. RESAAS signed an agreement in 2019 with boutique firm LEGACY Council of Canada to enable licensing for its real estate investors.
In February of this year, the company announced a partnership with ZorroSign, which gives the real estate industry access to electronic signature software. With this partnership, RESAAS will be granted access to ZorroSign’s patent-pending forensic technology, which provides fraud detection using blockchain technology.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.