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12 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds

In this piece, we will take a look at the 12 most undervalued blockchain stocks to buy according to hedge funds. If you want to skip our primer of the blockchain industry and want to jump to the top five stocks in this list, then take a look at the 5 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds.

The blockchain industry is one of the most transformative technologies right now. The dawn of the digital era and the subsequent migration of important sectors such as defense, banking, and healthcare to the digital realm have changed the way in which humans live their lives in the 21st century. They reduce paperwork and streamline processing, but at the same time also end up creating new security risks. While bank robbers before the computing age had to plan their robberies, arrange cars, and weapons, and then make their way to banks, now, hackers can transfer funds simply by sitting at a remote location and running code. At the same time, organizations such as the Pentagon originally had to store their secrets in hard copy which made espionage trickier. Now, if a system is compromised, then hackers and foreign threat actors can hope to glean national security secrets from compromised systems as well.

Blockchains provide a unique security solution to all these risks. For those out of the loop, a blockchain system is a ledger of sorts made of computers. Each time a ‘transaction’ is made on this system, a record is stored on each node and secured through cryptography. This provides a reliable data backup since records are not contingent on a single storage point and network administrators can monitor the entire system to accurately determine if there is a fault. At the heart of the blockchain is Bitcoin, the world’s premier cryptocurrency. Blockchains and Bitcoin go hand in hand as each Bitcoin is simply a computational record of a calculation performed for which the computer performing the computation receives a token that can be traded.

The immense potential of blockchains to be applied to several industries also makes it quite valuable. For instance, research from PricewaterhouseCoopers (PwC) shows that some areas that can benefit from blockchains include identity management, contracts, banking and finance, supply chain and logistics, and identity management. Specifically, the firm points out that within these areas, a supply chain is one of the biggest beneficiaries due to blockchain’s potential to transform tracking and tracing. In supply chain management, tracking and tracing refer to following a product’s path downstream and upstream of the supply chain, respectively.

This is crucial for product recalls, particularly in the food industry, as companies have a short time to figure out where a faulty ingredient originated from. According to PwC, blockchains for track and trace can boost economic productivity by $962 billion by 2030, to account for a sizeable chunk of the $1.76 trillion in total economic benefits to the global gross domestic product (GDP).

Since cryptocurrency and blockchain go hand in hand, any discussion of the latter is incomplete without the former. On this front, while 2022 was a devastating year for cryptocurrencies, the tail end of 2023 is providing cryptocurrency investors with some optimism as Bitcoin is up by 164% year to date. One major reason behind the surge is growing confidence that a Bitcoin ETF that allows stock market investors to profit from the currency might be approved by the U.S. government soon. But even if an ETF still isn’t official, the finance industry as a whole has been making big moves in the blockchain industry for years.

As an example, Franklin Resources, Inc. (NYSE:BEN) became the first financial company in the U.S. to launch a mutual fund that uses a blockchain for record keeping purposes. Building on this, JPMorgan Chase & Co. (NYSE:JPM) – the world’s biggest private banks in terms of assets – expanded its banking services to include blockchain technologies this month by going live on the Partior interbank network. Partior is hosted on a blockchain, and it seeks to speed up interbank processing which typically sees global funds flow through intermediary accounts before being deposited into the receiver’s account.

Today, we’ll take a look at the most undervalued blockchain stocks to buy, with the notable picks being PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA), and Block, Inc. (NYSE:SQ). For more blockchain companies, you can also check out 20 Biggest Blockchain Companies in the World in 2023.

blockchain

Our Methodology

To compile our list of the most undervalued blockchain stocks, we ranked the constituents of the Global X Blockchain ETF by their average analyst share price upside. The firms with the highest upside were ranked according to the number of hedge fund investors in Q3 2023, and the top ones were chosen as the most undervalued blockchain stocks.

Most Undervalued Blockchain Stocks To Buy According To Hedge Funds

12. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)

Number of Hedge Fund Investors In Q3 2023: 5

Average Analyst Share Price Upside: 20%

HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is a Canadian cryptocurrency mining company with operations in its home country and Europe. The firm’s shares are rated Buy on average and analysts have set an average share price target of $4.76.

During September 2023, five out of the 910 hedge funds part of Insider Monkey’s database had bought and owned HIVE Digital Technologies Ltd. (NASDAQ:HIVE)’s shares. It joins NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ) in our list of the most undervalued blockchain stocks that hedge funds are buying.

11. Bitfarms Ltd. (NASDAQ:BITF)

Number of Hedge Fund Investors In Q3 2023: 5

Average Analyst Share Price Upside: 54%

Bitfarms Ltd. (NASDAQ:BITF) is a cryptocurrency and blockchain company that runs server farms for blockchain use. During the third quarter, it continued to add power capacity to its operations and also increased its Bitcoin mining rate.

In the same quarter, five hedge funds out of the 910 profiled by Insider Monkey had held a stake in the firm. Israel Englander’s Millennium Management was the biggest Bitfarms Ltd. (NASDAQ:BITF) shareholder as it owned $2 million worth of shares.

10. TeraWulf Inc. (NASDAQ:WULF)

Number of Hedge Fund Investors In Q3 2023: 7

Average Analyst Share Price Upside: 152%

TeraWulf Inc. (NASDAQ:WULF) is a small American company with Bitcoin mining facilities. Its shares are rated Strong Buy on average and analysts have set an average share price target of $3.90.

As of Q3 2023 end, seven out of the 910 hedge funds surveyed by Insider Monkey were TeraWulf Inc. (NASDAQ:WULF)’s investors.

9. Iris Energy Limited (NASDAQ:IREN)

Number of Hedge Fund Investors In Q3 2023: 7

Average Analyst Share Price Upside: 152%

Iris Energy Limited (NASDAQ:IREN) is an Australian data center company that runs Bitcoin mining equipment. Due to the growing concerns surrounding heavy energy use in Bitcoin mining, it is one of the few firms that target fully renewable energy for its requirements. A November 2023 investor presentation saw Iris Energy Limited (NASDAQ:IREN)’s management share its future plans, including an order of 248 of the latest GPUs from NVIDIA Corporation.

Insider Monkey dug through 910 hedge funds for this year’s third quarter and found that seven had held a stake in the company. Kerr Neilson’s Platinum Asset Management owned 2.6 million Iris Energy Limited (NASDAQ:IREN) shares that were worth $9.6 million, allowing it to hold the largest stake.

8. Cipher Mining Inc. (NASDAQ:CIFR)

Number of Hedge Fund Investors In Q3 2023: 9

Average Analyst Share Price Upside: 87%

Cipher Mining Inc. (NASDAQ:CIFR) is an American company that owns and operates large scale cryptocurrency mining data centers. The firm mined 433 Bitcoins in November 2023 and also sold nine Bitcoins worth of power to others.

For their September quarter of 2023 shareholdings, nine out of the 910 hedge funds profiled by Insider Monkey were Cipher Mining Inc. (NASDAQ:CIFR)’s shareholders.

7. CleanSpark, Inc. (NASDAQ:CLSK)

Number of Hedge Fund Investors In Q3 2023: 11

Average Analyst Share Price Upside: 7%

CleanSpark, Inc. (NASDAQ:CLSK) is a Bitcoin mining company headquartered in Henderson, Nevada. During its fourth quarter of fiscal 2023 earnings call, management shared that not only did its revenue grow 28% annually for the fiscal year, but its mining rate of ten exahashes per second placed it at the top of the industry.

During 2023’s third quarter, 11 out of the 910 hedge funds part of Insider Monkey’s database had bought the firm’s shares. Jim Simons’s Renaissance Technologies owned the biggest stake in CleanSpark, Inc. (NASDAQ:CLSK) among these, due to its $7.3 million investment.

6. Riot Platforms, Inc. (NASDAQ:RIOT)

Number of Hedge Fund Investors In Q3 2023: 17

Average Analyst Share Price Upside: 7%

Riot Platforms, Inc. (NASDAQ:RIOT) is a diversified blockchain firm that mines its own currency, provides mining infrastructure to others, and also caters to the needs of organizational energy requirements. Its stock soared by more than 28% in November 2023, as its cost effective Bitcoin mining impressed investors.

17 out of the 910 hedge funds polled by Insider Monkey during Q3 2023 were Riot Platforms, Inc. (NASDAQ:RIOT)’s shareholders. Out of these, the largest investor was Israel Englander’s Millennium Management as it owned $18.7 million worth of shares.

Along with PayPal Holdings, Inc. (NASDAQ:PYPL), Riot Platforms, Inc. (NASDAQ:RIOT), NVIDIA Corporation (NASDAQ:NVDA), and Block, Inc. (NYSE:SQ), Riot Platforms, Inc. (NASDAQ:RIOT) is a top undervalued blockchain stock.

Click here to continue reading and check out 5 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds.

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Disclosure: None. 12 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…