Blockchain technology has gone from powering cryptocurrencies to investor returns, recently. Companies such as Riot Blockchain (NASDAQ:RIOT), Hive Blockchain (OTCMKTS:HVBTF) and Argo Blockchain (OTCMKTS:ARBKF) are more than 10% higher today, at the time of writing. Indeed, there is a tremendous appetite for these investments right now. Investors appear to be clamoring for innovation and growth. Blockchain stocks appear to have the long-term secular growth catalysts investors want right now.
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The moves we have seen in these stocks are really quite incredible. Here is what might be behind the share price appreciation we’re seeing in this sector right now.
Why Are these Blockchain Stocks Soaring?
It appears blockchain stocks are continuing to follow in the momentum of a few key pieces of news we’ve seen play out this past week. Here are a few of the news flashes investors ought to know about:
- Elon Musk announced a $1.5 billion investment in Bitcoin (CCC:BTC). A prominent market mover with an army of retail investors following his every move, Musk’s tweets matter. His continued bullish commentary on cryptocurrencies appears to be translating directly over to blockchain companies including RIOT stock, HVBTF stock and ARBKF stock.
- Canada just approved its first ever Bitcoin ETF aimed at retail investors yesterday.
- Wall Street Banks such as JPMorgan Chase (NYSE:JPM) appear to be on the verge of validating cryptocurrencies as investable assets.
- Argo just announced a letter of intent to build a massive facility on 320 acres of land with access to 800 megawatts of power.
Investors should remember that cryptocurrencies and the blockchain technology that underpins them are still highly volatile in nature. In my view, only sophisticated investors with a deep understanding of how these work and a stomach for high levels of risk ought to dip their toes in this murky water. Elon Musk seems to love cryptocurrencies and blockchain, but that doesn’t mean they’re for everyone.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Article printed from InvestorPlace Media, https://investorplace.com/2021/02/blockchain-stocks-why-riot-hvbtf-and-arbkf-stock-are-soaring-today/.
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