Cryptocurrencies have rapidly become a big deal when it comes to investment hence a rise in interest to find and invest in the next cryptocurrency big thing. Crypto mining refers to the process by which new units of cryptocurrency, often referred to as coins, are generated. As much as it is a tedious, power and resource-intensive process, it’s also appealing to investors as they are paid for their work using crypto tokens. Some of the fastest-growing crypto mining stocks include Stronghold Digital mining and Canaan.
Canaan
With its inception in 2013 in Beijing, this Chinese company has designed a high-powered, application-specific integrated circuit (ASIC) supercomputer for the sole purpose of crypto mining. With a good number of miners investing in machines to drive their operations, the company has been recording an increase in revenue. Recently the company announced their strongest revenue of 500% from their June 2021 sales compared to the previous year as the demand for mining machines is equally going up.
Canaan has also decided to join in on the crypto mining business and has announced that it’s setting up an operation base in Kazakhstan. The company has a dream of fully utilizing its in-house mining machines during high seasons in an attempt to diversify its revenue streams.
Stronghold Digital Mining
Founded in 2021 and headquartered in Kennerdell, Pennsylvania, Stronghold Digital Mining made itself public in October 2021. The company’s stock had soared up by 50% compared to its initial public offering one week after its debut. The company’s bitcoin mining operation is powered by reclaiming coal refuse sites in Pennsylvania. Considering they are an environment-friendly crypto mining company, Stronghold earns tax credits and renewable energy credits. Currently, the company operates over 3000 miners, all of which are powered by their fully owned power plant in Pennsylvania. Stronghold received $100 million in terms of fresh funding and is looking to gain more environment-friendly power generating assets. Over and beyond, they are looking to increase their mining speed from 185 PH/s to 2100 PH/s by the end of 2021.
Riot Blockchain
Riot Blockchain is a United States-based bitcoin mining company that is supporting the bitcoin blockchain through rapidly expanding large-scale mining in the country. The company’s bitcoin mining operations include the Whinstone US facility, a wholly-owned subsidiary of riot blockchain located in Rockdale, Texas, and their hosted miner in Coinmint LLC’s Massena, the New York facility.
The Whinstone facility, which the company acquired in May 2021, is the single largest bitcoin mining and hosting facility in North America with a mining speed of 3.0 EH/s and an efficiency of 30.7 W/TF utilizing approximately 91 MW of energy and a developed capacity of 300 MW. The company has signed a purchase agreement for more miners to be deployed by the end of the year 2022 that will see its mining speed increase to 9.0 EH/s.
In their financial report of the third quarter of 2021, Riot Blockchain recorded a 2,532% increase in total revenue to a record $64.8 million for the quarterly period ended September 30, 2021, as compared to $2.5 million for the same quarterly period in 2020. In addition, the mining revenue increased by 2,099% to a record $53.6 million for the quarterly period, as compared to $2.4 million for the same quarterly period in 2020.
Over and above, the bitcoin production increased by 482% to a record 1,292 Bitcoin during the quarterly period, as compared to 222 Bitcoin during the same quarterly period in 2020. Its bitcoin production increased by 91% to a record of 1292 in this third quarter compared to the subsequent quarter of 2021, which had a record of 222.
Hive Blockchain Technology
Hive Blockchain Technologies went public in 2017 as a Vancouver (Canada) based company that focuses on mining and selling cryptocurrencies. It has data centers in Iceland, Sweden, and Canada that are powered by green energy to operate and which produce minted digital currencies consisting of Bitcoin and Ethereum. In the period between April 2021 and June 2021, Hive recorded a revenue of US$37.2 million and a net income of US$18.6 million. In the same period, the company had significantly expanded its mining capacity.
Since January 2021, Hive has held most of its Ethereum and Bitcoin coins mining rewards securely. The company provides its shareholders with operating margins of digital currency mining and a portfolio of cryptocurrencies. Considering Hive owns hard assets such as data centers, it can offer its investors exposure to the world of cryptocurrency. In 2020 alone, Hive was able to sell 2 billion shares. Currently, Hive is focused on bridging the gap between the digital currency and blockchain sector and traditional capital markets. Hive is looking to increase its mining speed to 3 EX/s by the end of 2022 from the current 1 EX/s.
Marathon Digital
Based in Las Vegas, United States, and founded in February 2010, Marathon digital is looking to construct the largest Crypto mining facility in North America at the lowest energy cost owing to its access to cheap affordable energy. Its recently developed mining pool, MARA POOL, has helped its miners increase their prospect of finding a crypto block and mining it as they can share their computational resources over a network. It is audited by a third party; hence it has very high levels of transparency among miners.
Over the past two years, Marathon Digital has grown and expanded a great deal. Its cash position has increased from $217.6 million in the first quarter of 2021 to $1.1 billion in the last quarter of 2021. As of the end of November 2021, the company had produced approximately 2712.3 self-mined bitcoins in 2021 alone. It last sold bitcoin in October 2021 and has since accumulated all its produced bitcoins, including those that it bought at the beginning of 2021.
Conclusion
As much as crypto mining is a tedious process, investing in crypto mining stock is rewarding as cryptocurrencies are increasing in value by the day. Some of the best stocks to invest in are; Marathon Digital (NASDAQ: MARA), HIVE Blockchain Technologies (NASDAQ: HIVE), Stronghold Digital Mining (NASDAQ: SDIG), Canaan (NASDAQ: CAN), Riot Blockchain (NASDAQ: RIOT).
