As cryptocurrency gains more widespread adoption and popularity, crypto mining companies are coming under the spotlight.
Instead of buying Bitcoin or Ethereum, crypto traders and investors are buying crypto mining stocks in order to gain "crypto exposure". These crypto mining stocks are attractive to the more risk averse trader as they tend to experience lesser market volatility than the underlying coins.
How are these companies making money? Like any other miner, these companies turn a profit by proverbially digging up something valuable for a lower cost than it can sell it on the open market. For cryptocurrency mining, getting coins is a function of computing power measured in hash rate.
What exactly is crypto mining? It's essentially the process of creating cryptocurrencies via the auditing and processing of cryptocurrency transactions. Miners verify data blocks on the blockchain, the digital public ledger that acts as the bedrock for Bitcoin and other cryptocurrencies.
So which firms should you be aware of? Here is an introduction to some of the most interesting stocks available:
Marathon Digital Holdings (MARA.us)
Marathon Digital Holdings, Inc., formerly Marathon Patent Group, Inc., is a digital asset technology company. The Company mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. It operates in the Digital Currency Blockchain segment.
The Company operates a Data Centre in Hardin, Montana, United States with a power capacity of approximately 105 megawatts. The Company also owns approximately 2,060 Application Specific Integrated Circuits (ASIC) Bitcoin Miners at a co-hosted facility in North Dakota, United States. Its mining hardware performs operations in support of the blockchain measured in hash rate or hashes per second.
Bit Digital Inc., formerly Golden Bull Ltd, incorporated on February 17, 2017, is a holding company. The Company is engaged in the bitcoin mining business through its wholly owned subsidiaries in the United States, Hong Kong and Canada.
The Company's bitcoin mining operations hosted by third party suppliers uses specialized computers known as miners, to generate bitcoins a cryptocurrency. The Company's mining facilities and mining platform operate with an intent of accumulating bitcoin, which seeks to sell for fiat currency from time to time depending on market conditions.
BitDigital has approximately 32,500 miners in the United States, Canada and China. The Company conduct its business through Bit Digital Hong Kong Limited, a Hong Kong company and operating entity in China, Bit Digital U.S.A. Inc., operating entity in the United States, and Bit Digital Canada, Inc., a Government of Alberta, Canada corporation and operating entity in Canada.
Bitfarms Ltd., a blockchain infrastructure company, mines cryptocurrency coins and tokens in North America. The company owns and operates server farms comprising computers that primarily validate transactions on the Bitcoin Blockchain and earn cryptocurrency from block rewards and transaction fees.
The company's operating segment includes Backbone (from which it generates the majority of its revenue) and Volta.
The Backbone segment operates server farms that support the validation and verification of transactions on the blockchain, earning cryptocurrencies for providing these services and Its Volta segment provides electrician services to both commercial and residential customers in Quebec. The company was founded in 2017 and is headquartered in Toronto, Canada.
Riot Blockchain Inc
Riot Blockchain, Inc. is bitcoin mining company that operates in the provision of special cryptocurrency mining computers. It is known to invests in Verady, Coinsquare, and Tess. The company was founded on July 24, 2000 and is headquartered in Castle Rock, Colorado.
Riot focuses on Bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments. As of December 31, 2021, it operated approximately 30,907 miners.
Riot's position as a vertically-integrated industry leader in Bitcoin mining was significantly enhanced with the acquisition of ESS Metron, a premier provider of highly-engineered electrical equipment solutions.
The takecover was completedin December 2021 and is valued at approximately $50 million. The acquisition of ESS Metron, which is a key supplier to Riot's Whinstone facility, is highly complementary to Riot and its ongoing infrastructure expansion.
Canaan is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan engages in the research, design, and sale of integrated circuit (IC) final mining equipment products. Canaan is involved in integrating IC products for bitcoin mining and other related components, mainly in China.
It is also involved in the assembly and distribution of mining equipment and spare parts. The company has a strategic cooperation with Northern Data AG in the areas of artificial intelligence development, blockchain technology, and datacenter operations.
Canaan Inc. was founded in 2013 and is based in Beijing, the People's Republic of China.
Hut 8 Mining Corp
Hut 8 Mining is another major player in the crypto mining industry. It operates as a cryptocurrency mining company in North America, specializing in Bitcoin and Ethereum mining. The company engages in industrial scale bitcoin mining operations and is considered and innovation-focused digital asset miner. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 51 BlockBoxes in energy rich Alberta.
Located in energy-rich Alberta, Canada. Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined bitcoin than any crypto miner or publicly-traded company globally. As of July 2022, Hut 8 now holds 7,078 Bitcoins in reserve, only a handful of Bitcoin miners have more.
Hut 8 has stated a commitment to mining and holding bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of bitcoin's market direction.
Hut 8 Mining Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.
Argo Blockchain PLC
Argo Blockchain is a global data center company that provides a platform for cryptocurrency mining operations. Argo is a mining-as-a-software (MaaS) service provider that makes it easy for clients to mine Bitcoin Gold, Ethereum, and other alternative coins (altcoins) through the cloud. Argo engages in the bitcoin and other cryptocurrencies mining business. It engages in mining purpose-built computers for cryptographic algorithms. Argo is mainly focused on large-scale Bitcoin mining.
Argo Blockain is commited to sustainability as its top priority. It champions the use of renewable sources of power to support the growth and development of blockchain technologies.
The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. The Company's mining infrastructure is located at multiple sites in Quebec, Canada and comprise approximately 18,000 mining machines. Argo Blockchain plc was incorporated in 2017 and is headquartered in London, the United Kingdom.
Kalin Tsenov has a strong research background in economics with specific interests in Geopolitics and its impact on the Financial Markets.
He joined FXCM in 2018 after obtaining a Bachelor's Degree from Leeds Metropolitan University. Initially starting as a Business Analyst in the Payment Solutions department, he is currently a Product Specialist in the Firms Product & Strategy department.