5 best blockchain stocks to buy for Q3 2023

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets. His ... read more.

 & 

Jayson Derrick

Jayson was the Lead News Editor at Invezz until 2023 overseeing the team of reporters, analysts and strategic direction of news content. He traded stocks professionally... read more.

Updated: May 3, 2023

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Our experts have been through the markets and chosen their top five blockchain companies to invest in. This page explains how they came to their decision and shows you the best places to put your money this year.

What are the top blockchain stocks to buy?

The best ones are listed in the table below. You can read on to find out more detail about why each one was chosen and learn about their prospects for the future, or simply use the links in the table to see their latest stock price information.

1. Riot Blockchain (NASDAQ: RIOT)

Riot is a Bitcoin mining company. The company has been public since 2003 but only operated in its current form since 2017. Over the last few years it has built out its own mining operation, while it also sells infrastructure that lets other businesses mine the coins themselves.

The company’s fortunes rise and fall with the cryptocurrency markets and the price of Bitcoin. So 2021 was a great year, during which its stock value increased by more than 600% at its peak. As the markets waned later in the year, things settled down, but it still trades well above its price from a year earlier.

Riot’s potential lies in Bitcoin. Assuming the latter continues to increase in value and become an accepted means of payment, then Riot stock is likely to grow with it. Riot has invested in the infrastructure to make its mining process more efficient, so it consumes less energy while still creating hundreds more coins every year.

2. Marathon Digital Holdings (NASDAQ: MARA)

Marathon is another company that’s involved in Bitcoin mining. The company has invested heavily in mining equipment so that it can mine all sorts of different cryptocurrency. Like Riot, it’s new to the crypto game: having been a public company for a long time, it only moved into mining in 2020.

That move did wonders for its share price, as it rose more than 1,000% between November 2020 and the middle of the crypto bull market in April the following year. Marathon gets paid in Bitcoin for the coins it creates so, as with Riot, the share price tends to reflect the volatility of Bitcoin itself.

There are reasons to be cautious with this type of company. It isn’t as established as Riot and doesn’t have the same mining capabilities yet. However, because it’s so closely tied to Bitcoin it offers an opportunity to invest in the cryptocurrency through a regulated stock market company, which might be safer than buying the coins themselves.

3. Square (NYSE: SQ)

Square is a digital payments company that’s part-owned by Jack Dorsey, the man behind the social media platform, Twitter. Formed in 2009, Square really exploded into life in 2020 as it became a major player in the fintech game.

Part of that is down to the fact it now accepts Bitcoin payments. An approach that reflects Square’s disruptive, forward-thinking tactics. That sort of attitude took the share price from $80 in February 2020, before the pandemic hit, to over $250 a year later.

Dorsey in particular has been outspoken in support of cryptocurrency in general and Square routinely invests in companies that operate on the blockchain. That’s alongside a financial offering that’s continuing to expand, as the company now offers personal bank accounts and more payment options than ever. It’s a great stock to own and could rival PayPal in the years to come.

4. Canaan Creative (NASDAQ: CAN)

Canaan is a Chinese company that produces the hardware that’s used in cryptocurrency mining. Formed in 2013, it’s only been public in the United States since 2019. The company produces things like servers that are designed specifically for mining purposes.

Like the other mining companies in this list, its stock price tends to reflect the performance of cryptocurrency markets. 2021, then, was a fantastic year, as the stock rose 400% during the first few months, when Bitcoin surged to be worth $60,000 each.

As a producer of hardware rather than a company completely reliant on mining itself, Canaan is an alternative way to invest in cryptocurrency. Its ability to create data servers and microprocessors for specific purposes mean it could expand into other areas as well, and it might be a safer way to gain exposure to the crypto markets.

5. Hive Blockchain Technologies (TSE: HIVE)

Hive is another mining company, this time based in Canada. It was the first public Bitcoin mining company when it listed on the Toronto stock exchange in 2017. Now, its operations extend well beyond just Bitcoin and it is one of the most diverse miners around.

Again, the stock did particularly well in 2021 as the crypto markets roared to all time highs. Along with mining coins, Hive holds many of them as well, so it can make money from simple price appreciation as well as the mining operations themselves. The stock was up 1,000% in 2021, although it’s still available much more cheaply than the competition.

One of the big advantages Hive has is the range of coins it’s involved in. Along with Bitcoin it mines Ether as well, and it’s a major client of the fourth company on this list, Canaan, from which it buys a lot of its mining equipment. With diverse operations and high quality hardware, Hive could be well placed to profit from the next big crypto boom.

Where to buy the best blockchain shares

Use one of the brokers below if you want to get your hands on some shares right away. All of the trading platforms in the table let you buy stocks in these companies and you can head to each website by following the links to get started.

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1

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$ 10

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10

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2

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Min. Deposit

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Get insights from millions of investors, creators, and analysts

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Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

3

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9.4

Scope Markets is a regulated entity, following strictly the segregated accounts principal by offering a wide range of products together with Multi-Platform trading facilities.

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What is a blockchain stock?

Any company that is involved in the blockchain industry, from businesses that focus on crypto mining to those that develop new software which is built on blockchain technology. 

Are blockchain shares a good investment?

It depends on the company you choose, as they offer a wide variety of different services and are influenced by a range of factors. Generally, blockchain stocks are riskier and more volatile than most, as they are impacted by cryptocurrency markets which are difficult to predict.

The best way to invest in the blockchain is by starting small. Make sure to research the company in depth and consider how they might perform when there is less activity within cryptocurrency. Then it’s a good idea to balance out the risk by putting some money in more stable companies in other industries as well.

More than any other industry, cryptocurrency moves fast. Blockchain stocks can be affected by single tweets or by the hint of regulatory changes coming into effect. You need to follow the latest news so that you’re on top of any developments and can adjust your strategy accordingly.