We recently published a list of the 7 most profitable crypto stocks to invest in. In this article, we’ll take a look at how Block Inc. (NYSE:SQ) stacks up against other crypto stocks that are among the most profitable to invest in.
Where is the crypto industry headed?
Bitcoin recently recovered to the $62,000 level for the week ending October 11th. At the same time, Ether rose 1.73% to $2,443, and Solana rose 4.23% to $144. The weekly performance reflected a quiet crypto market, with Bitcoin declining slightly while Ether and Solana rose less than 1%. As interest rates fluctuate, Circle CEO Jeremy Allaire spoke about the impact on the stablecoin market in an interview with CNBC. In his opinion, the Federal Reserve changes interest rates as a tool to move them up, down, or to take a neutral position in terms of how quickly money moves through the economy. The general view is that lower interest rates are better for the market because they lower the cost of capital. He believes lower interest rates are a very good thing for stablecoin issuers like Circle. This is because more capital will be utilized, the velocity of money will increase, and the demand for stablecoin money will also increase. Apart from interest rates, there has been positive news for the crypto industry nearly two years after the collapse of cryptocurrency exchange FTX. According to the company, former customers will recover an amount equal to almost 119% of their account balance at the time of bankruptcy. Regarding this, John, the current CEO of FTX, says: J. Ray III said:
“Going forward, we stand ready to return 100% of the bankruptcy claim amount plus interest to non-governmental creditors through the largest and most complex bankruptcy estate asset allocation in history.”
Cryptocurrency and the 2024 Election
Ahead of the upcoming 2024 elections, the cryptocurrency world continues to look forward to what candidates will say about digital currencies. Although he previously railed against cryptocurrencies, Trump has now embraced them, announcing the launch of World Liberty Financial, a crypto banking platform. He also expressed support for domestic Bitcoin miners, saying that if cryptocurrencies are to define the future, he wants them to be mined, minted, and manufactured in the United States. Many crypto enthusiasts also welcome Kamala Harris’ views on the subject. Harris said during the Cipriani Wall Street fundraiser that he will encourage innovative technologies such as AI and digital assets. Hayden Adams, CEO of crypto exchange Uniswap, commented on this pro-crypto statement, saying, “I think this is the first time she’s mentioned cryptocurrencies in public, and I think it’s a positive thing.” I think that’s what it means,” he commented. At the same time, venture capitalist Ben Horowitz decided to make a large donation to Harris’ campaign. The move is a reversal from when he and business partner Marc Andreessen initially supported President Trump. In an internal letter reported by CNBC, Horowitz said he had discussed technology policy with Harris, who has not yet made her intentions clear, but that her administration would be far more socially destructive than the Biden administration. He said he believes he expects to excel. Technology policy, especially cryptocurrencies and AI. Our methodology: To create a list of the 7 most profitable crypto stocks to invest in, we created an initial list of the 30 largest companies in the sector by market capitalization. We then narrowed it down to a final list of companies that had positive net income over the subsequent 12 months. Finally, we ranked the shortlisted companies in ascending order of net income over the past 12 months. The number of hedge fund holders for each stock on the list is also mentioned. Here at Insider Monkey we’re obsessed with hedge fund stocks. The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
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Block, Inc. (SQ): Expand financial services by leveraging high profitability and marketability
People who use Cash App to pay for goods and services. It highlights the impact of the company’s payment tools.
Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 59 TTM Net Income: $680.77 million Block, Inc. (NYSE:SQ) is a technology company focused on financial services and helping expand access to the economy. The block consists of Square, Cash App, Spiral, TIDAL, and TBD. Square offers an integrated ecosystem of commerce solutions, business software, and banking services to help sellers grow their businesses, and Cash App lets you send, spend, and invest in stocks and Bitcoin. Spiral builds and funds free open source projects to advance the use of Bitcoin, while TIDAL is a platform for musicians and their fans. TBD makes it easier to access Bitcoin and other blockchain technologies. Block, Inc. (NYSE:SQ) continues to grow at scale and improve profitability. The core business is strong, with Square and Cash App’s adjusted operating margins increasing significantly. The company has also expanded its target market over time. In the US, market potential is strong, with Square representing a gross profit opportunity of approximately $130 billion and Cash App representing a gross profit opportunity of approximately $75 billion. Block’s overall profitable growth demonstrates that its ecosystem is efficiently delivering differentiated value to its customers. The company also moved to a functional organizational structure to improve collaboration across its ecosystem. Previously, Block acquired Afterpay to strengthen sales across Square and Cash App. Afterpay has instilled a high-performance sales culture in parts of Block’s business, and the company wants to extend this across the company. The company’s gross profit for the second quarter was $2.23 billion, up 20% from the same period last year. Square’s gross profit increased 15% year over year to $923 million, while Cash App’s gross profit increased 23% to $1.3 billion. Block witnessed improvement in all profitability metrics, including adjusted EBITDA, which increased 98% year-on-year. Block, Inc. (NYSE:SQ) is a promising cryptocurrency stock that has demonstrated increasing profitability and strength across its businesses. As of Q2 2024, this stock had 59 hedge fund holders. Overall, SQ ranks #2 on our list of the most profitable crypto stocks to invest in. While we recognize SQ’s potential as an investment, we believe some investors have made very good returns. Undervalued AI stocks are more likely to deliver higher returns and do so in a shorter period of time. If you’re looking for highly undervalued AI stocks that are more promising than SQ but trade at less than 5x earnings, check out our report on the cheapest AI stocks. Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’ Disclosure: None. This article was originally published on Insider Monkey.
