The most valuable cryptocurrency in the world.
Bitcoin reached a remarkable all time high of over
65,000 USD in 2021.
However, a massive drop.
In 2020 has scared investors away.
By mid-June, the coin plunged as low as 24,000,
dragging most altcoins to the bottom as well.
And while many investors seem worried, huge mining companies
calmly kept holding self mined coins instead.
Of getting rid of Bitcoin.
That's because the history of Bitcoin has demonstrated that after
each crypto winter, there inevitably is a crypto spring,
which is followed by a crypto summer that always
surprises the markets.
And while the main mining whales may have a tough time
looking at this year's reports, HODLing Always pays. Off.
For those who are patient.
So on today's CoinMarketCap episode, we will take a closer look
at the most profitable crypto stocks that may be worth buying despite the fall.
But before we dove too deep into their earnings, let's look at some numbers.
First of all, how profitable.
Is crypto mining these days?
Well, the profitability. Of mining.
A cryptocurrency heavily depends on the price of your mining
equipment, electricity fees and multiple other factors.
Such as the current state of the crypto market, the having of Bitcoin, etc.
As the market is shivering, the earnings from mining activities are now.
Signified gently. Lower.
For instance, in May, overall, Bitcoin mining revenue slid by more than 20%.
It brought in $906 million in revenue 47%
less than in October of 2021, when the market was peaking.
So for the first time since August of 2021, mining revenue
did not surpass the psychological mark of.
$1 billion.
Meanwhile, in 2021, only Bitcoin miners generated a net revenue of over
$15 billion, which represents a staggering
206% year over year increase.
Another interesting trend is that Ethereum gained
more mining revenue than Bitcoin for several consecutive months in.
2022.
For instance, in May, Ethereum miners earn a total of $969.4 million.
Almost 7% more than Bitcoin farms.
So though the recent crypto carnage heavily affected
the miners, the giant mining companies are still profitable.
To understand how much. They bring.
To their owners, we need to analyze market caps and earnings reports.
How do crypto.
Stocks deal with market plunges.
To quickly survey the market situation?
We can look at an exchange traded fund or an ETF that traces
all major crypto and blockchain companies, including mining stocks,
mainly the Amplify Transformational Data Sharing
ETF is traded on the New York Stock Exchange under the ticker.
BLOCK Since early 2018.
Currently, BLOCK has 49 holdings, including Visa, MasterCard and Meta.
Mining companies account for 22% of it.
With Canaan, Inc. on. Top. Of the list.
But due to the market.
Cap, block's share price dropped from $62 in November of 20.
21 to the current price of 20 bucks.
Compared to other ETFs. In the traditional markets.
BLOCK has visibly. Underperformed in 2020.
One, providing an annual total return of.
-44.2%.
Meanwhile, the Spider, an ETF that represents the largest companies.
From S&P 500.
Brought an annual total return of 28.5% during the same period.
Top crypto mining stocks. For 2022.
Let's review all the major stocks
related to crypto mining, starting from the largest one.
Our calculations include share price dynamics
within a 12 month period and market capitalization.
All calculations are.
Relevant for mid-June of.
2022 with the BTC price below $22,000.
Marathon Digital Holdings. Inc. With a.
Share price of around $6.8 and a market cap of around 737.
Million dollars.
Marathon Digital with.
The ticker symbol MARA is a Nevada based
mining company that aims to become America's largest.
Bitcoin mining facility.
The fiscal year of 2021 gave marathon an enormous increase in revenue.
It grew 3,353% year over year
to $150.5 million from just four point.
4 million in 2020.
Moreover, the company reported 3197 itself.
Mined Bitcoin in 2021.
And 846 increase year over year.
Q1 results, published in May of 2022,
revealed a 445%.
Boost from a similar. Quarter. In 2021.
The company produced a record amount of 1259 Bitcoins.
However, the revenue still demonstrated a 14% decline.
From Q4 when BTC reached its all time high and by mid-June.
Marathon stock was down over 76.
Percent from the previous year.
Same with other miners that will discuss its share price.
Was affected by the steep.
Decline in crypto. Prices that affect the.
Profitability of mining.
However, the company remains optimistic and shares promising forecasts for.
Late 2022.
For instance, in addition to its existing fleet, the company expects
to switch on 19,000 miners in its facility in West Texas.
Riot Blockchain, Inc.
With a share price of around $4.8 and a market
cap of around $617 million.
Riot Blockchain is a US based company focused on Bitcoin mining.
As per its website in 2021, Riot invested in 82,005
hundred mining rigs and expects them to be fully installed by.
Early 2023.
Riot also saw a remarkable year over year increase
of 1,665%.
Its net revenue grew from $12.1 million
to 213.2 million.
In addition to that, the number of Bitcoin held on the company's
balance sheet increased by 353%.
During spring of 2022.
When the markets were shaky.
Riot sold over 700 South. Mined BTC.
Raising over 27.
Million dollars from those deals.
Currently, the mining giant still holds around 6500.
And 36 Bitcoin.
The company also trimmed its annual hash rate forecast for.
2023.
Currently, Riot's shares traded on Nasdaq are down 86% from where they were.
In June of 2021.
The decline. Is even more noticeable.
When compared to mid fall of 2021 when BTC reached its all time.
High.
However, despite all the odds, the future of ride still looks promising.
The company recently acquired ESR.
Metron Designs, known for their.
Production of mining equipment to run Bitcoin facilities and.
Machinery.
Another notable investment.
Is the acquisition of the largest.
Bitcoin mining. Facility in North America.
Winstone US Canaan Incorporated with a share price
of around $3.2 and a market cap of around 609.
Million. Dollars.
Canaan Incorporated is based in China.
However, a significant.
Part of its overall.
Profits comes from its overseas business.
The company is famous for chip and mining machinery manufacturing.
In addition to that, it provides software services to the crypto world.
Canaan specializes in what's called application specific integrated circuits,
better known as ASICs, and introduced the world's first seven nanometer mining.
Chip in 2018.
2022 was not friendly towards crypto.
From the very beginning.
Canaan managed to show great results in Q1.
According to the report presented to the FCC, its revenue surged
237% to 213 point.
$9 million in comparison to Q1 of 2021.
Largely outpacing the experts forecasts.
Shortly after the earnings were announced, Canaan shares traded at Nasdaq under
the ticker can saw a surge in price.
However, though, within a year, Canaan shares lost almost 70%.
Of its price, currently trading at $3.3.
The company is affected not only by the recent crypto carnage, but by the.
Logistics suspensions caused by COVID lockdowns in China.
Hutz, a mining corp with a share price of around 2.18
CAD and a market cap of around 380.
Million Canadian dollars.
Toronto based HUT
eight mining incorporation is among the top miners across the world.
Its main facilities are located in various provinces of Canada,
and it mines not only Bitcoin but Ethereum as well.
2021 brought hut eight a record breaking revenue of 173.8
million CAD, which represents a 332% growth in.
Comparison to 2020. The company mined.
2786.
Bitcoin during that period. In Q1 of 2022.
Its revenue increased 67% to.
53.3 million Canadian.
Dollars, compared to the same quarter in.
2021.
As of May of 2020.
Two, the company had 7078 self mined Bitcoin in reserve
worth 145 million USD at the time of recording its Ethereum.
Mining unit for.
That month, generated approximately 14%.
Of total production.
2021 was an important year for Hut eight as its shares began trading in Canada.
Its stock is traded on the Toronto Stock Exchange since 2018.
At the time of.
Recording Hut, stock on the TSX lost.
57% in 12 months.
By 2020.
Three, hut eight expects to add 167,000.
Bitcoin miners to its fleet.
Its agreement with data center provider Compute North will allow it
to open new mining facilities and significantly.
Increase its hash rate. Bitfarms Ltd.
With a.
Share price of around 1.85 CAD and a market cap of around.
368 million CAD.
Canadian mining company Bitfarms
mines crypto in multiple facilities located in Canada, the U.S.
and Paraguay.
In the near.
Future, it plans to add Argentina to its geography, to mine coins,
but far mostly relies on renewable energy such as hydroelectricity.
Same for most companies mentioned on this list.
2021 was a huge success for Bitfarms, its yearly revenue
increase 388%, with the.
Total amount of Bitcoin's.
Mine reaching 3400 and. 53.
Same as its competitor hut eight.
Bitfarms is traded on both the Toronto Stock Exchange and Nasdaq under the.
Ticker bytes on the Toronto Stock Exchange.
Its shares dropped.
Almost 65% during the last year.
Although the crypto market is still. At the bottom.
Bitfarms expects to reach its mining target with new investments and facilities
in action.
Hive Blockchain. Technologies Ltd.
With a.
Share price of around 4 CAD and a market cap of three.
Hundred and 28 million CAD.
A third. Canada based company on.
Our list.
Hive Computing has an HQ in Vancouver and runs its mining machinery
in Canada, U.S., Iceland and Sweden.
It is mainly mining, bitcoin and Ethereum.
However, Hive is also involved in NFT trading.
Following.
Its investment in network media group.
It also owns a 4.9% stake in a company called DEFI Technologies.
In total, in 2020.
One, Hive managed to produce 4000.
And 32 Bitcoin.
41,000. 900 and.
66 ETH and 46,200.
And nine ETH Classic.
The company mainly holds.
Itself mined bitcoins and sells ether and eve classic to upgrade ships and buy.
Equipment.
The exact amount of revenue was not included in the report.
How blockchain. Technology.
Became the first publicly traded crypto miner on the Canada venture exchange.
Back in 2017.
Under the ticker hive.
Later, the company went live on Nasdaq as well.
Its shares on the Canada venture exchange were down
75% in the last 12 months.
However, the company's prospects might calm.
Down the investors.
Same as hut eight.
Hive is cooperating with compute north to store its miners.
Moreover, to deploy its mining facility in Texas,
it will purchase additional intel chips.
So is it time to invest in crypto mining?
Well, up until the end of.
2021, when crypto prices were peaking, those were good times.
The mining stocks were also actively growing, but with Bitcoin below.
22,000 and Etherium hovering around
11,000, it's highly unlikely that the Q2 results.
Of Marathon Canaan and other. Mining giants.
Will surprise the markets.
On the contrary, they will scare many traders.
Away for quite a long time.
However, by the DIP supporters are extremely.
Vocal during this crypto winter, as Bitcoin and.
Altcoins have demonstrated their potential to recover and hit new highs
at least two. Times by now.
But it might take a long time for the crypto market to recover.
So if you decide to add some shares of mining giants to your portfolio
right now, think carefully as you might need to hold on to them
for several months before the market gets back to green again.
So that's it for today's Coinmarketcap episode.
Let us know if you are planning to buy crypto mining stocks in.
The comments below.