Skip the crypto mining rigs and invest directly in mining stocks.
The cryptocurrency ecosystem is expanding and innovating all the time, making it an appealing area of investment now. One way to gain exposure to digital assets is by investing in crypto mining stocks. Crypto mining is necessary to keep the blockchain running — it involves validating transactions on a platform’s blockchain network. Crypto miners are rewarded with new coins in exchange for validating transactions by solving complex mathematical equations. There are several miners on the market that are leaders in this space, creating sustainable ways to maintain operations. If you are curious about the technologies that power cryptocurrencies such as Bitcoin (BTC) and the companies behind them, read on for a list of the best crypto mining stocks on the market.
Riot Blockchain Inc. (RIOT)
Riot Blockchain is one of the largest publicly traded Bitcoin miners in the U.S., focused on supporting the Bitcoin ecosystem through proof-of-work mining. Riot’s self-mining operations cost less to power and are driven by renewable energy sources. The company’s mission is to become the most significant supporter of the Bitcoin network. A great way to get exposure to Bitcoin without directly investing in the cryptocurrency, Riot has a market cap of $1.8 billion and an attractive share price of about $16. Crypto stock performance tends to be correlated to Bitcoin’s price, which is down nearly 20% year to date. As a result, shares of Riot have had a rough year, down 29% as of Feb. 22. If you believe Bitcoin’s fortunes are going to turn around, this dip might be a good time to buy.
Marathon Digital Holdings Inc. (MARA)
Marathon Digital is another large Bitcoin mining operation in the U.S. The company’s goal is to improve Bitcoin production by increasing the hash rate, or the amount of computing power used by Bitcoin miners to mint new Bitcoins while verifying transactions on the network. MARA had total Bitcoin holdings of 8,595 BTC, valued at more than $300 million, as of Feb. 1. More than 32,000 Bitcoin miners are deployed, which has helped improve the company’s hash rate and Bitcoin production. Marathon Digital has strong access to capital, with $1.1 billion in total liquidity, which includes more than $620 million in cash along with its Bitcoin holdings. MARA has a market cap of $2.3 billion. Its shares go for about $22, down 31% so far in 2022.
Canaan Inc. (CAN)
Canaan is a computing services provider that is best known for inventing the world’s first Bitcoin mining machine in 2013. This invention spurred the growth of a computationally strong Bitcoin mining sector. Canaan is an expert in chip design, research and development, and it provides supercomputing for more cost-efficient hardware that’s better at performing crypto mining operations. The company announced in January that it had entered into strategic collaboration agreements with crypto mining firms in Kazakhstan. “The deployment of over 10,000 mining machines not only deepens our collaboration with local mining farms, but also marks our great strikes in our cultivation of the Bitcoin mining business,” Nangeng Zhang, chairman and CEO of Canaan, said in a company news release.
Bitfarms Ltd. (BITF)
Bitfarms is a blockchain infrastructure company that operates as one of the largest self-mining crypto companies in the U.S. The company provides computing power to crypto networks, such as Bitcoin, and earns fees by securing and processing transactions from each network it services. Crypto mining requires a lot of energy consumption, but Bitfarms uses “farms,” or mining facilities, that are powered by hydroelectricity, reducing its carbon footprint. This miner has a market cap of $603 million and a share price of about $3. As the cryptocurrency market grows, small-cap miners such as Bitfarms may continue to expand their facilities and computing capacity.
BIT Mining Ltd. (BTCM)
One of the major concerns in the crypto mining industry is the vast amount of energy consumed to maintain blockchain networks. This is why BIT Mining focuses on sustainable crypto mining. BIT Mining serves more than 2 million users globally, offering low-cost supply and data centers with experienced construction and operations teams. It aims to respond quickly to any troubleshooting needed in the mining process. The company has an Ethereum-focused mining site in Hong Kong and has invested $23 million to build out another data center in Ohio with 50,000-mining-machine storage capacity. The company expects that project to be complete next month. BTCM has one of the smaller market caps on this list, at $193 million, and a share price under $3.
Hut 8 Mining Corp. (HUT)
Hut 8 Mining is a digital asset miner focused on Bitcoin, blockchain and Web 3.0. Hut 8 is experienced at operating in a variety of crypto market conditions, with a diversified fleet of mining equipment to adapt to different levels of market volatility. Hut 8 has five data centers in Canada that serve 400 enterprise commercial customers in different industries, including visual effects, gaming and government. Hut 8 says its mining centers are environmentally friendly, using wind energy and other green options, in addition to gas-fueled power. Its mines operate in areas with freezing temperatures, the most favorable conditions for mining operations. The company has a market cap of $921 million and a share price of roughly $5.
Argo Blockchain PLC (ARBK)
Argo Blockchain is another leading crypto mining provider that focuses on using renewable resources to power the development of mining technologies. The company’s mission is to power the world’s most sustainable blockchain infrastructure. Argo has more than 24,000 mining machines in the U.S. and Canada, with a 100% carbon-neutral footprint. Argo has a variety of ways that it generates revenue, such as through crypto staking, nodes and decentralized finance protocols. The company has competitive profit margins, thanks in part to its low power costs. Argo’s market cap is $433 million, with shares valued at about $9.
7 best crypto mining stocks to buy:
— Riot Blockchain Inc. (RIOT)
— Marathon Digital Holdings Inc. (MARA)
— Canaan Inc. (CAN)
— Bitfarms Ltd. (BITF)
— BIT Mining Ltd. (BTCM)
— Hut 8 Mining Corp. (HUT)
— Argo Blockchain PLC (ARBK)
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7 Best Cryptocurrency Mining Stocks originally appeared on usnews.com
