3 Cryptocurrency mining companies to invest in
Do you want to make money online by investing? Well, we can make your path easier in achieving your goals.
You might have heard of cryptocurrency and even invested in It, but the world of cryptocurrency is not limited to the various digital currencies.
The companies involved in mining cryptocurrency are also an excellent opportunity to invest in.
The expansion of the digital world has led to a massive shift in earning opportunities with a plethora of ways to make money online.
Even a few years ago getting a job was considered the only way to settle down in your life, but due to the increased usage of the internet people are now easily able to make money online without a job.
This article will help you to know more about one of the most exciting and profitable ways of making money online by investing in the top 3 cryptocurrency mining companies to invest in.
Investing in cryptocurrency has been a roller coaster ride for its investors. It is not an easy task to select a profitable cryptocurrency for investment.
Hence we bring to you more details on 3 cryptocurrency mining companies you can look to invest in and make money online as a beginner.
What Is cryptocurrency mining?
Before moving to the top 3 cryptocurrency mining companies to invest in it’s important to understand for beginners what does crypto mining means? and look into how to make money online with cryptocurrency.
To start it’s a relatively young industry that mainly involves several digital currencies like bitcoin, Ethereum, etc.
Which are implemented based on the blockchain technology used to facilitate the transaction of digital currency.
Cryptocurrency mining companies are also an essential part of the cryptocurrency industry as they are required to utilize high computational power to solve complex problems validate any transactions using blockchain technology and generate new crypto coins.
There are several crypto mining stocks and they are represented by an exchange-traded fund (ETF) known by the name Amplify Transformational Data Sharing ETF (BLOK) which has underperformed the broader market.
Now we will take a deep dive into the top 3 cryptocurrency mining companies assessed on the parameters like fast growth, high profitability, and best performance in the market.
Bitfarms (BITF)
Bitfarms Ltd. is a company involved in cryptocurrency mining and is involved in the business of powering up the global decentralized economy.
The company was established in 2017 and is currently headquartered in Toronto, Canada.
Bitfarms (BITF) Statistics
| Market Cap | 404.718M |
| Corporate Hashrate | 3.3 EH/sec |
| PE Ratio (TTM) | 15.47 |
| Research Rating | Undervalued (Stong BUY) |
| 52 week High | $9.3600 |
| Q4 2021 Avg production cost per bitcoin: | $8000 |
| Quarterly Revenue Growth (yoy) | 426% |
| Total Cash (mrq) | 125.59M |
Bitfarms has the smallest market cap value in the list of top 3 cryptocurrencies we recommend investing in.
The company’s operation involves services like providing computational power to the cryptocurrency network and providing services ensuring secure and successful transaction processing within the network.
One of the key factors making this a good buy for ESG investors is the fact that it runs its operation entirely on hydroelectric power which is an environmentally friendly choice to run a business.
Operating Facilities: 6 Operational Centers which include 5 facilities in Quebec and Canada and a new facility in Washington purchased in late 2021 through which Bitfarm marked its footprint on the US soil.
It also has the capacity to generate 404 MW of power.
Why do we recommend investing in Bitfarm?
- The strong and experienced management team who are experienced in investment in capital markets and are focused on building infrastructure for the future by growing in the space of blockchain technology
- Strong financial performance.
- Expansion plan in future
- Ability to keep the cost of power Low.
Hut 8 Mining corp. (HUT)
The company is one of the leading organizations in the digital finance space and has been crucial in the advancement of decentralized systems with digital asset mining and high-performance computing.
Hut 8 Mining corp. (HUT) Statistics
| Market Cap | 461.598M |
| Forward P/E | 4.45 |
| Research Rating | Fair Value (Moderate Buy) |
| 52 week High | $16.5700 |
| Quarterly Revenue Growth (yoy) | 345.90% |
| Total Cash (mrq) | 140.13M |
Key Operational Statistics
The company has 3 digital asset data mining facilities, 5 multitier centers for high-performance computing, 400+ commercially high-performance computing customers.
3 business lines for revenue generation, a total of 209 MW power capacity, and 6115 self-mined bitcoin revenue stock.
The company’s operation involves bit coining mining powered by the high-power capacity it boasts off.
Operating Facilities: Hut 8 has a total of 8 operating centers that run on power generated through hydropower and nuclear energy.
It has also signed power purchase agreements to meet its power requirements and the operational centers are optimally located in areas of cold climate and high winds which are considered best for establishing mining centers.
Why do we recommend investing in Hut 8?
- High power generation capacity and plans of increasing power capacity indicate the ability to meet demand in the future.
- Optimal location of operating facilities
- The company has multiple ways to increase self-mining including 2 new miner purchases
- Bullish sentiment based on analysis by a leading research analysts who predict a strong upward movement in its stock prices.
Marathon Digital Holdings (MARA)
The 3rd cryptocurrency mining company in our top 3 recommendations for investment is Marathon Digital Holdings INC.
Currently, it’s the largest crypto mining company in North America.
It’s a digital asset technology company that is involved in crypto mining.
Marathon Digital Holdings Statistics
| Market Cap | 1.179B |
| Forward P/E | 10.07 |
| Research Rating | Fair Value (Moderate Buy) |
| 52 week High | $83.45 |
| Q4 2021 Revenue | 60.28 Million |
| Quarterly Revenue Growth (yoy) | 2,180.30% |
| Total Cash (mrq) | 492.3M |
The company’s operation strategy is based on increasing hash rate to spike up production and simultaneously decreasing associated risk in its business by having a defensive strategy against the bitcoin price drop.
Operating Facilities: Marathon Digital has collaborated with Beowulf Energy to relocate its Bitcoin data center at the Big Horn data hub which is a 20-acre landmass neighbor to Beowulf’s Hardin Generating Station, a 105 MW power facility located in Hardin, Montana.
Why do we recommend investing in Marathon Digital?
- A strong growth strategy that focuses on improving the bitcoin production rate by increasing the number of miners which increases the hash rate and in turn improves profitability.
- The company also continuously works on reducing risk factors to the sudden price drops in bitcoin by negotiating profitable deals and effective risk mitigation strategies.
- History of profitable expansion: In Q12020 it started to expand its mining portfolio with next-gen miners, then next quarter it was able to bag a $23 million contract with Bimain to increase its mining ability by adding 10500 S19 pro miners.
- The company then partnered with Beowulf Energy to relocate its Data mining center and ensure a constant power supply.
- Strong growth projection: the company expects the bitcoin network has a rate to touch 350 EH/sec and revenues to increase to $969.3 million and earnings per share will be at $6.46.
- It has established a 3-way joint venture involving an unnamed green energy supplier for meeting power requirements in an environment-friendly way and Compute North a hosting service provider which would be providing all machines outside Hardin.
Why you should invest in a crypto mining company
In 2017 digital currencies also known as cryptocurrencies experienced a metamorphic rise in their prices.
The spike was not only limited to the bull run in cryptocurrencies but also the stock prices of crypto mining companies to experience a strong surge.
Despite the open culture mining of cryptocurrencies is dominated by established companies with high power capacity due to the complex algorithms required to be solved using high computational power which in turn requires costly equipment and power capacity difficult to be managed domestically.
With the growing number of transactions, the complexity and difficulty of validating transactions inflate which in turn requires higher amounts of power consumption.
So how do the crypto mining companies are profitable?
The crypto mining companies follow 3 basic strategies to ensure profitability:
- Lower fixed costs by buying computers, servers, coolers, and other equipment in bulk
- The companies operate at scale to save electricity cost
- Increase price of mining with the rising cost of cryptocurrencies
Coming back to the question of why one should be investing in mining companies.
During the pandemic induced lockdown stock market across the globe went crashing down but it didn’t affect the cryptocurrency and hence they do act as hedging options against macro-economic factors further fueling the demand for crypto mining which in turn makes crypto mining companies a good investment opportunity.
Final Words…
Kudos!!! You have completed reading about the top 3 cryptocurrency mining companies to invest in.
It is important to understand with the plethora of cryptocurrency miming companies available one needs to be cautious about the associated risks involved in the business and the profitability a crypto mining company can achieve.
We have considered all the required parameters once should consider for identifying investment opportunities among the top crypto mining companies and making your life easy in the quest to make money investing.
The article also covers the basic understanding of cryptocurrency and mining and helps you to know more about why it’s a good investment choice to be made.
That is all we have for you about the 3-cryptocurrency mining companies to invest in. Hopefully, you enjoyed reading through and gained key insights and will be able to utilize the insights to make some money.
