The crypto ecosystem is expanding and innovating all the time, making it an attractive space for investment now. One way to receive exposure to the digital space is by investing in cryptocurrency mining stocks. It is important to keep the blockchain operating as it associates validating transactions on a blockchain network of the platform.
In this case, the crypto miners are rewarded with the latest tokens in return for validating transactions by solving complicated mathematical equations. There are various miners in the crypto space that lead the market, formulating sustainable ways to maintain the functioning. If you are interested in the technologies that fuel digital currencies, then read on for the top cryptocurrency mining stocks on the market.
7 Top Cryptocurrency Mining Stocks
The crypto space is still young but is increasing rapidly. They are a relatively new form of digital currency, with BTC (Bitcoin) being the most common among them all. Digital currencies use the blockchain technology which assures the maintenance of a decentralized and secure record of transactions without the requirement of a trusted third party. Digital currency mining companies avail computers to solve complicated mathematical problems to validate transactions on a blockchain and generate the latest digital currency coins. They can be held and also used for several transactions or can also be sold for fiat currency.
With that, there have been various cryptocurrency mining stocks that have outperformed in the border market. Let us have a look at those top 5 crypto mining stocks.
1. Riot Blockchain Inc. (RIOT)
Riot Blockchain is among the largest publicly traded BTC miners in the U.S., aimed at supporting the Bitcoin ecosystem via proof-of-work mining. The self-mining operations of Riot cost less to power and are navigated by renewable energy sources. The mission of the company is to become the most prominent supporter of the BTC network. A good way to get exposure to Bitcoin without directly making an investment in the digital currency, Riot stock has a market capitalization of $1.8 billion and a lucrative share price of nearly $16. Crypto stock performance tends to be associated with the price of BTC, which is down close to 20% year to date. As an outcome, shares of Riot have had a tough year, down 29% as of Feb. 22. If you believe that the fortunes of Bitcoin are going to turn around, this dip might be a good time to purchase.
2. Marathon Digital Holdings Inc. (MARA)
Marathon Digital is another big BTC mining operation in the U.S. The aim of the company is to enhance the production of Bitcoin by raising the hash rate, or the amount of computing power that is used by Bitcoin miners to mint the latest Bitcoins while verifying transactions on the network. MARA stock had total Bitcoin holdings of 8,595 BTC, which is valued at over $300 million, as of Feb. 1. Over 32,000 Bitcoin miners are deployed, which has helped enhance the hash rate of the company and also its Bitcoin production. Marathon Digital has strong availability to capital, with $1.1 billion in total liquidity, which comprises more than $620 million in cash along with its BTC holdings. MARA has a market capitalization of $2.3 billion. Its shares go for nearly $22, down 31% so far in this year.
3. Canaan Inc. (CAN)
Canaan is a computing services provider that is popular for inventing the first Bitcoin cloud mining machine in the world in 2013. This invention increased the growth of a computationally strong Bitcoin mining sector. Canaan is the leader in chip design, research, and development, and it offers supercomputing for more cost-efficient hardware that is better at performing crypto mining functions. The company declared in January that it had associated itself with strategic collaboration agreements with crypto mining firms in Kazakhstan. Nangeng Zhang, chairman, and CEO of Canaan said in a company news release that,
“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.”
4. Bitfarms Ltd. (BITF)
Bitfarms is a blockchain infrastructure entity that functions as one of the biggest self-mining crypto entities in the U.S. The company offers computing power to crypto networks, like Bitcoin, and earns fees by safeguarding and processing transactions from every network it services. Crypto mining needs a lot of energy consumption, but Bitfarms uses “farms,” or mining equipment, that are powered by hydroelectricity, decreasing its carbon footprint. This miner has a market capitalization of $603 million and a share price of nearly $3. As the digital currency market evolves, small-cap miners like Bitfarms may prevail to expand their facilities and computing power.
5. BIT Mining Ltd. (BTCM)
One of the major issues in the crypto mining space is the huge amount of energy consumed to maintain blockchain networks. This is why BIT Mining aims at sustainable crypto mining. BIT Mining serves over 2 million users globally, providing low-cost supply and data centers with experienced construction and functioning teams. It focuses on responding quickly to any troubleshooting required in the mining process. The entity has an Ethereum-focused mining site in Hong Kong and it has invested $23 million to construct another data center in Ohio with a 50,000-mining-machine storage capacity. The entity expects that project to be complete next month. BTCM has one of the shorter market capitalizations on this list, at $193 million, and a share price under $3.
6. Hut 8 Mining Corp. (HUT)
Hut 8 Mining is a digital asset miner that is focused on BTC (Bitcoin), WEb 3.0, and blockchain. Hut 8 is experienced at functioning in varied crypto mining conditions, with a diversified range of crypto mining equipment to adapt to varying levels of market fluctuations. Hut 8 offers five data centers situated in Canada that serve 400 enterprise commercial users in varied sectors that include visual effects, government, and gaming. As per the company, its mining centers are environmentally friendly using wind energy and other green options along with gas fueled power. Its mines function in spaces that have freezing temperatures which is the most favorable condition for cryptocurrency mining operations.
7. Argo Blockchain PLC (ARBK)
Argo Blockchain is another top crypto mining provider that aims at using renewable resources to fuel the development of mining technologies. The mission of the company is to power the most sustainable blockchain infrastructure in the world. Argo has over 24,000 mining machines in the U.S. and Canada, with a 100 percent carbon-neutral footprint. Argo has a variety of avenues through that it generates revenue, such as via crypto staking, nodes, and decentralized finance protocols. The entity has competitive profit margins, thanks in part to its low power costs. The market capitalization of Argo is $433 million, with shares valued at nearly $9.
The Closing Lines
The crypto space is increasing to a great extent and so are its associates. With the evolution of crypto mining, many people found a new avenue to earn money, and hence its popularity grew. Various mining companies are now doing great and in the above article, we have discussed the top 7 cryptocurrency mining stocks that have a great scope of investment now.
Frequently Asked Questions On Cryptocurrency Mining Stocks
1. Can you invest in crypto mining?
The digital currency space – which investors can receive exposure to via a range of asset classes, that include exchange-traded funds (ETFs), digital currencies, and crypto mining stocks, among others – can best be illustrated as fluctuating assets. Take for example the roller-coaster ride BTC went on in 2021.
2. Which crypto mining is best?
The top crypto mining companies include Ravencoin, Haven Protocol, Ethereum Classic, Litecoin, Ethereum, and Monacoin.
3. What are the best crypto stocks to invest in?
The best crypto stocks ideal for investment includes Riot Blockchain Inc. (RIOT), Marathon Digital Holdings Inc. (MARA), Canaan Inc. (CAN), Bitfarms Ltd. (BITF), and BIT Mining Ltd. (BTCM).
4. Is crypto mining still profitable?
Bitcoin mining is the process by which the latest BTCs are brought into existence which is a process that is capped at 21 million BTC, as per the Bitcoin protocol. Presently, mining Bitcoin as an individual is hardly profitable unless someone has availed to extra low-cost electricity.