Crypto mining is one of the hottest new trends as Bitcoin rises in price.
I personally buy Bitcoin using a trusted cryptocurrency exchange like Coinbase daily but I also hold Bitcoin mining stocks like Marathon Digital Holdings (NASDAQ: MARA).
Table of Contents
- What is Bitcoin Mining?
- What are Bitcoin Crypto Mining Stocks?
- Why Invest in Crypto Mining Stocks?
- Best Bitcoin Crypto Mining Stocks to Buy Right Now
- Are Bitcoin Mining Companies a Good Investment?
- Where to Buy Bitcoin Mining Stocks
What is Bitcoin Mining?
Bitcoin mining is how new Bitcoins circulate within the digital crypto system. Miners provide the necessary power and solve mathematical equations to unlock Bitcoins as a reward.
Ever since the Federal Reserve began printing currency to ease the blow of the global pandemic, we’ve seen a surge in crypto mining companies who wish to profit from rising Bitcoin prices.
Most crypto miners deploy miners such as the Antmain s29 to mine Bitcoin at a specific hashrate. The higher the hashrate, the faster a miner can receive Bitcoin.
What are Bitcoin Crypto Mining Stocks?
Many investors are buying up Bitcoin crypto stocks like crazy but there is a ton of hidden value in these little-known crypto mining companies.
Why Invest in Crypto Mining Stocks?
There are several reasons to consider investing in crypto mining stocks:
- Crypto miners can deploy hundreds of thousands of miners to mine dozens of Bitcoins every day
- Mined Bitcoins can be held by the crypto miner or sold into the Bitcoin market for a tidy profit
- Crypto mining takes a lot of energy and space to deploy many miners. Crypto mining stocks are a good alternative for investors who are interested in mining Bitcoin but don’t have the resources or time.
Best Bitcoin Crypto Mining Stocks to Buy Right Now
- Marathon Digital Holdings (NASDAQ: MARA)
- Riot Blockchain (NASDAQ: RIOT)
- Canaan (NYSE: CAN)
- Hut 8 (NASDAQ: HUT)
- Greenidge (NASDAQ: GREE)
- Cleanspark (NASDAQ: CLSK)
- Core Scientific (NASDAQ: CORZ)
- Bitfarms (NASDAQ: BITF)
- Bit Digital (NASDAQ: BTBT)
- Hive Blockchain (NASDAQ: HIVE)
Here’s a breakdown of each Bitcoin mining company:
|Ticker||Company Name||Last Price||Market Cap||BTC Holdings||Hashrate||Total Miners||Q4 '21 BTC Mined|
|BTBT||Bit Digital||$1.50||123.6M||808||2.60 EH/s||28,745||240|
|CORZ||Core Scientific||$1.71||556.4M||5,296||6.6 EH/s||67,000||2,498|
|HIVE||Hive Bockchain||$3.37||361.6M||1,813||1.7 EH/s||698|
|MARA||Marathon Digital Holdings||$6.07||645.3M||8,133||3.5 EH/s||32,350||1,098|
|RIOT||Riot Blockchain||$4.73||640.2M||4,899||3.1 EH/s||29,593||1,355|
1. Marathon Patent Group (NASDAQ: MARA)
Marathon Digital Holdings is probably my favorite Bitcoin mining stock because the company holds the most BTC out of all publicly traded Bitcoin mining companies and plans to rapidly expand its current crypto mining operations in 2022.
Marathon purchased 4,812.66 BTC for a total investment of $150 million back in January 2021 and currently holds 8,133 BTC.
2021 was a record year for Marathon with Bitcoin production up a whopping 846% YOY to 3,197 BTC.
Right now as of January 2022, Marathon deploys 32,350 Antminer S-19 Pro miners but will expand to 199,000 by the end of Q1 2023. Marathon mines around 15 BTC daily but could mine over 100 Bitcoins per day once scaled to full capacity.
Once all 199k miners are fully deployed, I estimate Marathon will generate at least $90 million in monthly revenue and over $1 billion in annual revenue at current Bitcoin prices.
Marathon also has one of the strongest balance sheets in the Bitcoin mining industry with $241 million in cash. While other mining companies sell Bitcoin from time to time to generate revenue, Marathon is a long-term HODLer that plans to stack Bitcoin instead of sell for short time profits.
With just a $3 billion market cap, Marathon group is grossly undervalued in respect to its long-term crypto mining output.
2. Riot Blockchain (RIOT)
Riot Blockchain is another Bitcoin miner with around 30,000 S-19 Pro Antminers in operation. Once Riot reaches full capacity, the company will have 120,000 miners by the end of Q4 2022.
As of January 2022, Riot Blockchain holds 3,128 BTC that were all acquired via mining operations.
Riot Blockchain holds around $71 million in cash so it will be interesting to see if they raise more capital to fund expansion through share dilution.
With just a $3 billion market cap, Riot is grossly undervalued as well although I like Marathon’s more aggressive approach to mining.
3. Canaan (CAN)
Canaan is a China based crypto mining hardware manufacturer that sells mining machines to companies.
Canaan’s AvalonMiner1246 has received over 100,000 preorders from customers all over North America s crypto currency mining booms.
Canaan should see a massive boost in revenue because Bitcoin will continue to attract miners as BTC soars in price.
Just like the California gold rush attracted gold miners in the 1800’s, Bitcoin will attract more miners with rising valuations.
4. Hut8 (HUT)
Hut8 is one of the largest Bitcoin mining companies on the NASDAQ with more self-mined BTC holdings than any other publicly-traded company.
In Q2 2021, Hut8 reached a record quarterly revenue of $33.5 million and currently holds 4,450 BTC in its reserves.
5. Greenidge (GREE)
Greenidge went public via a merger with Support.com to help the company expand its Bitcoin mining output. The company bought 10,000 S19j Pro miners from Bitmain for its newly planned mining facility in South Carolina.
6. CleanSpark (CLSK)
Cleanspark is a sustainable Bitcoin mining company based out of Nevada (USA) with a fast-growing miner fleet.
2021 was a record production year for the company and Cleanspark mined 1,528 BTC.
As of January 2022, Cleanspark holds 633 BTC but doesn’t practice a HODL strategy. The company sells Bitcoin from time to time to fund operations.
Cleanspark’s Bitcoin mining strategy is a bit different from larger miners like Marathon Digital because of the company’s smaller balance sheet. The company holds just $15 million on its balance sheet and will need to continue selling BTC in the future to increase mining capacity and hashrate.
7. Core Scientific (CORZ)
Core Scientific is the largest Bitcoin mining company in North America that completed its SPAC merger in January 2022.
The company operates 2 different business models, self-owned Bitcoin mining and 3rd party miner management, making it more balanced in terms of revenue.
As of January 2022, Core Scientific operates 67,000 self-owned miners as well as 80,000 miners for 3rd party clients.
The company holds 5,300 BTC on its balance sheet and ended Q4 with a massive 2,498 BTC mined.
Core Scientific has aggressive plans to increase its revenue and reach over $1 billion in total revenue in 2022.
CORZ has the highest market cap out of all Bitcoin mining companies with around $190 million in cash available after the merger.
Bitfarms is a Canadian-based Bitcoin mining company that plans to quickly scale its Bitcoin mining fleet in 2022.
The company achieved record BTC mining production with 3,042 Bitcoin mined in 2021 at 2.2 EH/s.
Bitfarms operates 27,000 miners and currently holds 4,300 BTC in custody.
9. Bit Digital (BTBT)
Bit Digital is a Bitcoin mining company with operations in the United States and Canada.
As of Q4 2021, the company deployed over 28,000 miners despite decreasing its fleet due to Bitcoin miner machines sales.
10. Hive Blockchain (HIVE)
Hive Blockchain is a crypto mining company based out of Canada & Europe that mines both Bitcoin and Ethereum.
The company is the only crypto miner on the list with interests in altcoins like Ethereum so it’s a good choice if you are a strong ETH bull.
Are Bitcoin Mining Companies a Good Investment?
Yes. I fully believe Bitcoin will eventually hit $500,000 in the future and we’ll see an explosion of crypto innovations and new useful technologies.
Crypto miners can continue mining Bitcoin as it rises in price over time because each of these companies owns a large number of miners that constantly work to mine BTC.
Where to Buy Bitcoin Mining Stocks
You need a brokerage account to buy and sell crypto mining stocks. Here are some of my recommended stock trading apps: