20 Best Cryptocurrency Stocks to Buy According to Hedge Funds

7. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 59

Block, Inc. (NYSE:SQ) is a technology company which has a focus on financial services. It is made up of Square, Cash App, Spiral, TIDAL, and TBD, all of which help people navigate the barriers to accessing the economy. Square offers an integrated ecosystem of commerce solutions, business software, and banking services for sellers to grow their business while Cash App allows sending, spending, or investing money in stocks or bitcoin. Spiral advances the use of Bitcoin by building and funding free, open-source projects whereas TIDAL is a platform for musicians and their fans. TBD eases access to Bitcoin and other blockchain technologies.

The firm delivered a strong second quarter with its gross profit going up 20% year-over-year. Square gross profit increased 15% year-over-year while Cash App gross profit climbed 23% year-over-year thereby depicting the strength of these key businesses. Adjusted EBITDA nearly doubled over the year and adjusted operating income was up 16 folds year-over-year. Recently, Block, Inc. (NYSE:SQ) has decided to reorganize its reporting structure by function for improved collaboration across the different ecosystems. For the 12 months ending in June 2024, Block had $1.43 billion in adjusted free cash flow, almost doubling from the preceding year.

The company’s potential for continued growth and profitability as mentioned above, its ability to generate substantial free cash flow, and its strategic shift to functional organizational structure make it attractive for investors. Block has 59 hedge fund holders, as of Q2 2024. Catherine D. Wood’s ARK Investment Management was the leading shareholder among these hedge funds.