Broker Check
Blockchain Sectors and Stocks to Consider In 2021

Blockchain Sectors and Stocks to Consider In 2021

October 28, 2021
Share |

There is a lot of hype surrounding cryptocurrencies like the old-timer Bitcoin, well as NFTs (non-fungible tokens). Now that you’re reading this, chances are you’ve already heard about this ‘blockchain’ hype. After all, blockchain technology powers cryptocurrencies and NFTs.

While Bitcoin has experienced a meteoric rise over the past decade, many investors now seem to be leaning towards blockchain stocks. For example, cryptocurrency mining company Marathon has achieved gains of ~ 7600% over the past year. This marks a nearly ten-fold lead over Bitcoin's earnings of ~799% during this period.

Cryptocurrency stocks are estimated to continue growing as the adoption of the technology increases. Many financial players have started adopting cryptocurrency-based transactions. For instance, MasterCard launched a debit card that supports cryptocurrency, currently being piloted in the UK and EU. In addition, Tesla is also accepting Bitcoin now.

Overall, investors looking to bet on the rise of blockchain technology at all levels would look at the best blockchain stocks currently trading in the market. So, if you intend to join this group of early adaptors, here are the blockchain sectors and stocks to consider in 2021 and beyond categorized under Exchange Brokers, Crypto Miners, and Security Software Companies.

Exchanges Brokers  

1. BIGG Digital Assets  

BIGG Digital Assets Inc. operates in the digital assets and blockchain technology industry. It operates through two segments, Blockchain Technology Development and Digital Currency Sales Brokerage.

The company developed QLUE, a blockchain-agnostic search and analytics engine that enables law enforcement, RegTech, regulators, and government agencies to visually track, trace, and monitor digital currencies transactions at a forensic level.

It also developed a brokerage and exchange software to make the purchase and sale of digital currency easily accessible to the mass consumer and investor with a focus on compliance and safety.

The company has a partnership with Blockchain Foundry Inc. to develop an integrated forensic and risk scoring product for syscoin-based tokens. It was formerly known as BIG Blockchain Intelligence Group Inc. and changed its name to BIGG Digital Assets Inc. in September 2019. BIGG Digital Assets Inc. is headquartered in Vancouver, Canada.

2. Voyager Digital

Voyager Digital is a Canadian asset broker offering retail as well as institutional investors a platform to trade crypto assets. Voyager Digital Ltd develops a cryptocurrency trading platform by utilizing an execution management and order routing system.

“Voyager offers a secure way to trade over 60 different crypto assets using its easy-to-use mobile application”

The platform uses a router and customized algorithms to allow users, both retail or institutional, to place and route trade orders to one or several trading exchanges to buy or sell cryptocurrency assets. The main advantage is that they offer safe execution and custody of crypto assets. With single, central access, you can manage, trade, research and secure the crypto asses of your choice.

Crypto Miners

1. RIOT

Riot Blockchain Inc. is a prominent player in the blockchain space. Riot is a Colorado-based Bitcoin mining company that focuses primarily on building and operating its blockchain technology ecosystems.

Riot has now been earmarked by crypto investors right now given its position in the crypto mining industry. Similarly, riot stock is already posting gains of over 1,600% in the last six months because of this.

Operationally, Riot doesn't seem to be resting on its laurels yet. Earlier this month, the company provided an update on its Bitcoin production and overall operations. In the report, Riot posted steady month-over-month growth in bitcoins mined from December 2020 to February 2021. In February 2021, the company had posted a growth of 43% in newly mined bitcoins.

The company also announced that it plans to buy 1500 Bitcoin miners. Riot's hash rate operational capability continues to grow significantly. Now that the company is moving up a gear, it might be the right time to take a swing.

2. Marathon Digital

Marathon Digital Holdings is based in Las Vegas and has quickly risen as one of the largest Bitcoin miners. It currently has plans to relocate its operations to a Texas-based data center.

The company reported strong Q2 financial results in August. With total revenue of $29.3 million, the company recorded an increase of 10,147% YOY. Total liquidity, including cash and bitcoin holdings, was around $366.5 million.

Marathon mined 654 new bitcoins in Q2 totaling 846 newly mined bitcoins over the first half of 2021. Marathon Digital is heavily investing in a large Bitcoin mining infrastructure in North America and will see its revenues rise sharply come early next year.

Year-to-date, MARA shares have dramatically increased to around 294.4%. If you’re interested in investing in both blockchain and BTC-USD, keep this stock on your watch list.

Security Software Companies (Sector Three)

1. BIGG Digital Assets – Qlue and Bit Rank (Blockchain Intelligent Group)

As earlier introduced, BIGG Digital Assets Inc. operates in the digital assets and blockchain technology industry. It operates through two segments, Blockchain Technology Development and Digital Currency Sales Brokerage.

In terms of Blockchain Technology Development, the company develops QLUE, a blockchain-agnostic search and analytics engine that enables law enforcement, regulators, and government agencies to visually track, trace, and monitor digital currencies transactions at a forensic level.

The Blockchain Foundry’s on-chain compliance solution & wallet-to-wallet transaction monitoring capabilities will be integrated with BitRank Verified® and QLUE™. This integration will offer real-time risk mitigation. Usually, security tokens need additional checks and sets of rules, and this integration brings compliance and trust, which makes it more accessible for wider adoption.

Governments and banks Central Bank Digital Currency (CBDC) or stablecoins can monitor in real-time any suspicious activities and illicit actors with these software’s.

2. Chanalysis 

Chinalysis Inc. is a privately owned security software company providing data, software, services, and research to government agencies, financial institutions, and exchanges now spanning more than 60 countries.

Its range of intuitive products includes REACTOR, an interactive investigation tool that identifies offenders, offers visualized data tracking, and shares the results with organizations, and people. Chinalysis also provides diligent tools and monitoring reports that allow analysts to anticipate emerging threats and criminal revenues.

In addition, the platform also offers verification of customers for bitcoin business, and web-based investigation tools to identify cyber-criminals, and bitcoin extortion payments made by victims to criminals.

References 

  1. https://www.mastercard.com/news/perspectives/2021/why-mastercard-is-bringing-crypto-onto-our-network/
  2. https://biggdigitalassets.com/
  3. https://www.investvoyager.com/investorrelations/overview
  4. https://www.riotblockchain.com/
  5. https://ciphertrace.com/crypto-aml-report-2018q3.pdf
  6. https://www.chainalysis.com/chainalysis-reactor/
  7. https://www.bloomberg.com/press-releases/2021-10-04/marathon-digital-holdings-announces-bitcoin-production-and-mining-operation-updates-for-september-2021