The most undervalued blockchain stocks to buy in April are for those who think outside the box. Most investors know the big names already, but these hidden gems can offer significant upside potential, especially in the current market environment.

The next Bitcoin (BTC-USD) halving event, scheduled for near the middle of this month, is highly anticipated in the crypto world. Historically, Bitcoin’s price has rallied in the months leading up to and following a halving event.

These most undervalued blockchain stocks to buy in April, I think, have the potential to surge even higher than the big cryptocurrencies such as Bitcoin, Ethereum (ETH-USD) or anything else. The reason is that blockchain stocks often have a correlation and Beta higher than Bitcoin itself, thus allowing them to surge and crater.

What’s better is that these blockchain stocks are not mainstream options, so they may be undervalued for reasons besides speculation or their tether to the broader market. So, here are three of the most undervalued blockchain stocks to buy in April.

Iris Energy (IREN)

Iris Energy (NASDAQ:IREN), based in Australia, focuses on renewable energy for Bitcoin mining.

I expect companies like IREN that provide the needed power for Bitcoin miners to come into hot demand as time goes on. Bitcoin is very energy intensive, and there could be regulatory crackdowns on it due to its high energy use. IREN provides a competitive advantage for Bitcoin miners and helps to curb that risk moving forward.

The reason I think it’s undervalued comes from its outlook. In 2024, IREN is focusing on substantial growth and expansion in its operations. The company aims to increase its operating capacity from 5.6 EH/s to 20 EH/s by the end of the year, leveraging 9 EH/s of miner purchase options exercisable in the second half of 2024. 

This, combined with its forward P/E ratio of 8 times earnings at the time of writing, makes it one of those undervalued blockchain stocks to buy in April.

Cipher Mining (CIFR)

Cipher Mining (NASDAQ:CIFR) operates cryptocurrency mining data centers in the U.S. and has been noted for its substantial Bitcoin mining output​.

I think smaller firms like CIFR could have a leg up on the larger miners, since investor dollars are flowing to names such as Riot Platforms (NASDAQ:RIOT), due to its relatively higher outputs, but more expensive valuations.

That being said, in January, CIFR announced a significant expansion of its Bear and Chief Joint Venture Data Centers, planning to install 16,700 new miners from Canaan. The expansion is expected to enhance CIFR’s mining capabilities by approximately 2.5 EH/s, contributing to an increase of about 1.25 EH/s at each facility.

It also reported great progress for the fiscal year 2023, with CIFR having reported substantial progress, including fourth-quarter GAAP earnings of $10.6 million and non-GAAP earnings of $27.8 million, with annual revenues reaching $126.8 million. 

The company’s negative P/E ratio means it is much cheaper than its larger peers.

CleanSpark (CLSK)

CleanSpark (NASDAQ:CLSK) is recognized for its Bitcoin mining capabilities, with one of the highest mining rates in the industry.

The alternative view of investing in Bitcoin miners is that they get to take advantage of their vast scales in production and output. That is especially important as the halving event reduces their overall profitability over time, provided that Bitcoin doesn’t rise by a proportional amount in value. CLSK’s hashrate gives it an edge over others, and I think it can be surmised to be undervalued.

Looking forward, CLSK is aggressively expanding its mining capacity. The company has announced acquisitions and expansions aimed at significantly boosting its operational hashrate. These strategic moves are set to increase CLSK’s total operating hashrate to 20 EH/s in the first half of 2024, doubling its current operational hashrate of 10 EH/s. Additionally, these acquisitions, alongside a strategic agreement for purchasing up to 160,000 S21 miners, pave the way for CLSK to potentially reach a hashrate of 50 EH/s.

On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.