Many industries are adopting blockchain technology faster than anticipated. Here’s a look at blockchain technology stocks.
2019 was a formative year for blockchain. Bitcoin prices soared once again, while the Libra whitepaper fundamentally altered the discussion on cryptocurrencies, leading many investors to ask the question, “What are the best blockchain technology stocks to invest in?”
The World Economic Forum states that in the next 10 years, blockchain platforms are projected to store 10 percent of global gross domestic product. With that comes the rise of blockchain technology stocks.
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.”
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 are turning to other ways of getting exposure. There are essentially three main options for how to invest in blockchain, but here we will focus on stocks.
Investing in stocks is the obvious place to start when thinking of how to invest in blockchain. Below are just a few blockchain technology stocks for investors to choose from. They are listed in alphabetical order and had market caps between C$10 and C$700 million at the time of publication.
Blockchain technology stocks to consider
1. DigitalX (ASX:DCC)
Market cap: AU$16.96 million; current share price AU$0.03
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 company launched a bitcoin fund, which can be accessed through an unlisted fund structure at a low cost. DigitalX reported that it has invested roughly AU$2.75 million in the fund.
2. Global Gaming Technologies (CSE:BLOC.U,OTC Pink:BLKCD)
Market cap: C$662.3 million; current share price C$0.11
The financing helped the company publish its first murder mystery game, St. Noire, which was developed by X2 Games. The game is powered by Amazon’s (NASDAQ:AMZN) Alexa, and is the first board game to be driven by the AI assistant.
The day after the announcement, Global Gaming began accepting preorders.
Since then, the company has gone through several changes in management. During the last quarter of 2019, Global Gaming announced that through its subsidiary, X2 Games, it had entered into a licensing agreement with Virsix Games, allowing Virsix the use of the licensed intellectual property for St. Noire.
3. HIVE Blockchain (TSXV:HIVE,OTC Pink:HVBTF)
Market cap: C$134.09 million; current share price C$0.41
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.
Since then, the company has made revenue strides, announcing at the end of 2019 that it produced a record of C$12 million in mining income, with C$300,000 in cash generated from operations. The mining firm mined a total of 586 bitcoin, 20,649 ethereum and 32,692 ethereum classic.
4. Kontrol Energy (CSE:KNR,OTCQB:COBCF)
Market cap: C$16.92 million; current share price C$0.58
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.
Working in tandem with these systems, Kontrol Energy is developing blockchain solutions to curtail energy waste. In creating a distributed ledger system that tracks carbon emissions, the company is working to develop a carbon offset trading platform and GHGcoin designed to incentivize consumer spending on carbon reduction projects. A pending acquisition for the trading platform and GHGcoin was announced in February last year.
Kontrol Energy and Toyota Tsusho Canada (TTCI) signed a joint venture last year under which Kontrol Energy will provide smart factory solutions to TTCI’s factories. TTCI said at the time that it is working towards improving energy management using Kontrol Energy’s IoT hardware and technical support.
5. Northern Data (FWB:NB2)
Market cap: $314.25 million euros; current share price $39.40 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.
Most 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,OTCQX:OSTBP)
Market cap: US$338.49 million; current share price US$8.73
Overstock.com was among the first US retailers to accept bitcoin. Overstock.com was founded in 1999 with the name Deals.com. In 2018, Overstock.com reported annual revenues reaching US$452.5 million.
That year, the company introduced tZERO, a security token trading platform. As Coindesk reports, accredited investors can trade tokens through broker-dealer Dinosaur Financial Group. The tZERO security token offering raised US$134 million in August 2018, according to CryptoVest.
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.
Most recently, 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.
7. RESAAS Services (TSXV:RSS,OTCQB:RSASF)
Market cap: C$15.72 million; current share price C$0.27
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 platform allows brokers to share listings and referrals in real time.
In February 2018, RESAAS acquired Real-Block, a Toronto-based blockchain firm. Last May, 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 last July.
RESAAS also 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.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.