The crypto ecosystem is constantly growing and evolving, making it a desirable place for investment right now. Investing in stocks of crypto mining companies is one approach to get exposure to digital assets. The blockchain needs to be mined for cryptocurrencies to function. It entails verifying transactions on the blockchain network of a platform.
In exchange for confirming transactions by resolving challenging mathematical equations, cryptocurrency miners are rewarded with fresh coins. There are a number of leading miners on the market who develop environmentally friendly techniques to maintain operations. Read on for a list of the top 8 crypto mining stocks on the market compiled in this article to learn more.
How Promising Is Crypto Mining Today?
The cost of your mining equipment, electricity costs, and numerous other factors, such as the state of the cryptocurrency market at the time, halving, etc., all have a significant impact on how profitable mining a cryptocurrency is. The revenue from mining operations is now much reduced as the market trembles.
Sadly, there is no quick way to figure out whether cryptocurrency mining is still lucrative. The cost of electricity required to run the mining equipment, the price of the equipment, and the difficulty of mining should all be taken into account when mining each coin. Miners should also be informed of the current crypto price due to the volatile nature of cryptocurrencies. The mining of that particular cryptocurrency can become unprofitable if its price falls below a certain threshold. Because of this, when prices fall, many miners cease to operate the network.
Further complicating matters for smaller miners is the mining gear employed by serious miners. If you want to be more effective, you can join a mining pool, but doing so costs money and lowers your profit. Bitcoin is not the only cryptocurrency that many crypto miners choose to mine. While some cryptocurrencies may not have much value, you can exchange them for any other cryptocurrency, including bitcoin.
Try to estimate the potential earnings using one of the cryptocurrency mining profitability calculators you may find online before you start mining.
Here are the Top 8 Stocks for Crypto Mining.
Marathon Digital Holdings Inc. (MARA)
Stock price: US$14.17
Another significant Bitcoin mining facility in the United States is Marathon Digital. The corporation wants to increase the hash rate, or the amount of processing power utilized by Bitcoin miners to create new currencies while confirming transactions on the network, in order to increase the output of Bitcoin.
Q1 results from a quarter in 2021 were improved by 465 %, according to May 2022 reports. 1,259 bitcoins, a record number, were produced by the business. The revenue nevertheless showed a 14 % fall from Q4, when BTC reached its all-time high. Marathon’s stock price on the NASDAQ was down more than 76 percent by mid-June compared to the prior year.
The business, however, is upbeat and offers encouraging projections for late 2022. For instance, the business plans to activate 19,000 miners in its West Texas facility in addition to its current fleet. As a result, the hash rate is anticipated to increase to 23.3 EH/s by 2023.
Riot Blockchain Inc. (RIOT)
Stock price : US$8.27
One of the biggest publicly traded Bitcoin miners in the United States, Riot Blockchain, is committed to fostering the Bitcoin ecosystem through proof-of-work mining. Riot uses renewable energy to power its self-mining processes, which are less expensive to run.
Riot invested in 82,500 mining rigs in 2021 and anticipates having them completely deployed by the beginning of 2023. Riot has signed purchase agreements for additional S19 miners, which are projected to enhance its self-mining hash rate capacity to 12.6 EH/s and be delivered and deployed by Q1 2023. They are concentrating on boosting their infrastructure’s capacity and mining hash rate in order to increase their activities.
The price of RIOT shares listed on NASDAQ has decreased by 86% since June 2021. When contrasted to mid-fall 2021, when BTC achieved its record high, the decrease is even more obvious. Nevertheless, despite all the obstacles, Riot’s future is bright. The business recently purchased ESS Metron Designs, which is well-known for producing mining technology and equipment to run Bitcoin operations. The purchase of Whinstone US, the biggest Bitcoin mining operation in North America, is another noteworthy investment.
Canaan Inc. (CAN)
Stock price: US$3.88
Canaan, a company that offers computing services, is best known for developing the first Bitcoin mining device ever in 2013. This innovation helped the Bitcoin mining industry expand and become more powerful computationally. Canaan specialises in chip design, research, and development and offers supercomputing for more affordable technology that is more effective at carrying out crypto mining operations.
Even though 2022 was initially unfriendly to cryptocurrencies, Canaan was still able to perform admirably in Q1. According to the report provided to the SEC, its revenue increased 237 percent to $213.9 million in Q1 2022 compared to Q1 2021, significantly exceeding professional projections. Canaan shares, which are traded on NASDAQ under the ticker CAN, saw a spike in price soon after the profits were reported.
Bitfarms Ltd. (BITF)
Stock price: US$1.62
One of the biggest cryptocurrency companies in the US that engages in self-mining is Bitfarms, a blockchain infrastructure provider. In exchange for fees, the company secures and processes transactions from each network it serves, including cryptocurrency networks like Bitcoin, for which it supplies computing capacity. Cryptocurrency mining consumes a significant amount of energy, but Bitfarms uses “farms,” or mining establishments, that are powered by hydroelectricity, decreasing its carbon footprint
Similar to the majority of the companies on the list, Bitfarm had a fantastic year in 2021. With 3,453 bitcoins mined in total, its annual earnings climbed by 388 percent. When the full-year report was released in March 2022, Bitfarm’s hash rate was 2.7 EH/s, an increase of 23% for the year thus far. Despite the fact that the cryptocurrency industry is currently in a bear market, Bitfarm anticipates using additional investments and facilities to achieve its goal of 8 EH/s by year’s end in 2022.
BIT Mining Ltd. (BTCM)
Stock price: US$0.72
The enormous amount of energy required to run blockchain networks is one of the key issues facing the cryptocurrency mining sector. This is why BIT Mining concentrates on eco-friendly cryptocurrency mining. More than 2 million users worldwide are served by BIT Mining, which provides affordable supplies and data centres with knowledgeable construction and operations personnel.
It tries to react swiftly to any issues that require troubleshooting during the mining process. The company operates a Hong Kong-based Ethereum mining facility and has committed $23 million in the construction of a new data centre in Ohio that can house 50,000 mining machines.
Hut 8 Mining Corp. (HUT)
Stock price: 3.08 CAD
Dedicated to Bitcoin, blockchain, and Web 3.0, Hut 8 Mining is a miner of digital assets. Hut 8 has expertise operating in a range of crypto market circumstances and has a varied fleet of mining hardware to accommodate varying degrees of market volatility. Hut 8 has five data centres in Canada that support 400 commercial corporate clients from a variety of sectors, including visual effects, gaming, and government.
According to Hut 8, its mining facilities use wind energy, other green technologies, as well as gas-fueled power, to be environmentally sustainable. The best conditions for mining operations are present at its mines, where temperatures below freezing prevail. Hut 8 projects that its fleet will grow to 167,000 bitcoin miners by 2023. By opening new mining facilities and dramatically raising hash rate, it will be able to do so thanks to its arrangement with data centre operator Compute North.
Argo Blockchain PLC (ARBK)
Stock price: US$5.04
Another well-known cryptocurrency mining company, Argo Blockchain, focuses on leveraging renewable energy sources to drive the advancement of mining technology. The company’s goal is to power the most environmentally friendly blockchain infrastructure possible.
The carbon footprint of Argo’s more than 24,000 mining machines in the United States and Canada is zero. Argo makes money via a multitude of ways, including crypto staking, nodes, and decentralised financial protocols. Due in part to its affordable power expenses, the business has competitive profit margins.
Hive Blockchain Technologies Ltd. (HIVE)
Stock price :6.50 CAD
Hive Computing is headquartered in Vancouver and operates mining equipment in Canada, the United States, Iceland, and Sweden. In particular, it mines Bitcoin and Ethereum. However, as a result of its involvement in Network Media Group, Hive also engages in NFT trading. Additionally, it holds a 4.9 percent investment in DeFi Technologies.
In 2017, under the ticker HIVE, the Hive blockchain technology became the first publicly traded cryptocurrency miner on the Canada Venture Exchange (CVE). Later, the business started trading on NASDAQ.
In the past year, its CVE shares have decreased by 75%. Investors may be reassured by the company’s future, nevertheless. Hive is working with Compute North to store its miners, just like Hut 8 does. It will also buy more Intel chips to build a 100 MW mining facility in Texas.
Here you have it!. It is a given that crypto mining stocks are frequently tied with crypto prices. But as the Crypto ecosystem continues to expand and change, it is currently a favourable space to invest.