In this article, we discuss 10 bitcoin mining stocks to buy now. If you want to read about some more stocks in this collection, go see 5 Bitcoin Mining Stocks to Buy Now.
Bitcoin mining refers to the process that adds new bitcoins to market circulation and it is a crucial element in maintaining blockchain transactions. Mining is a complex and costly operation, using advanced software, algorithms, and equipment to solve computational mathematical problems and receiving a block of bitcoins as a reward. The primary reason for bitcoin mining is to validate the legitimacy of crypto transactions, increase transparency, and maintain the integrity of the decentralized blockchain space.
The global cryptocurrency mining market is forecasted to reach $4502.4 million in 2026, compared to $4050.5 million in 2020. The global mining market size is expected to grow at a CAGR of 2.7% over the next five years. According to Fitch Ratings, flourishing crypto mining operations can possibly affect the energy sector, especially in emerging markets, as power capacity is shifted towards mining activities. The surge in the 2021 crypto market and successful mining operations resulted in the consumption of about 0.4% to 1% of the global electricity supply. Server farms and data centers are also known to overload energy networks and cause power outages. Bitcoin’s annualized power demand is estimated at 125 terawatt-hour by the Cambridge Center for Alternative Finance.
Some of the most notable companies that have helped with the mainstreaming of cryptocurrencies and increased adoption of digital assets include NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and PayPal Holdings, Inc. (NASDAQ:PYPL). However, we focus primarily on bitcoin mining stocks in this article.
bitcoin mining
Our Methodology
We carefully assessed the bitcoin mining market, selecting companies that are major players in the space. We have mentioned the hedge fund sentiment and available analyst ratings around the stocks.
Bitcoin Mining Stocks to Buy Now
10. CleanSpark, Inc. (NASDAQ:CLSK)
Number of Hedge Fund Holders: 5
CleanSpark, Inc. (NASDAQ:CLSK) was incorporated in 1987 and is headquartered in Henderson, Nevada. It operates as a bitcoin mining and energy technology company. The Digital Currency Mining division of CleanSpark, Inc. (NASDAQ:CLSK) mines bitcoin via its wholly owned subsidiaries, ATL Data Centers LLC and CleanBlok, Inc.
On April 5, CleanSpark, Inc. (NASDAQ:CLSK) disclosed its unaudited bitcoin production for the month ending March 31 and operations for 2022. The company mined 318 coins in March and 898 coins year-to-date, and total Bitcoin holdings as of March 31 came in at 420. CleanSpark, Inc. (NASDAQ:CLSK) has presently deployed more than 23,000 latest-generation bitcoin miners with a total hashrate of 2.3 EH/s.
CleanSpark, Inc. (NASDAQ:CLSK) announced on March 31 that it has partnered with Lancium, a Houston-based data management company, to receive an initial 200 megawatts at Lancium’s renewable energy datacenters in West Texas. CleanSpark, Inc. (NASDAQ:CLSK) can access up to 300 MW additional power in the future. After completely utilizing this capacity with the latest generation of bitcoin mining equipment, CleanSpark, Inc. (NASDAQ:CLSK) will add an estimated 16.0 EH/s to its presently projected hashrate of 4.0 EH/s. It is expected that about 50 MW of the acquired capacity will become operational by December 31, 2022, and the rest will be fully functional by spring 2023.
BTIG analyst Gregory Lewis maintained a Buy recommendation on CleanSpark, Inc. (NASDAQ:CLSK) but lowered the firm’s price target on the stock to $30 from $35 on February 10. The analyst slashed the price target to account for the volatility around cryptocurrencies and the execution risk on the microgrid side, as compared to mature energy infrastructure companies. The analyst observed the company’s Q1 results, noting that CleanSpark, Inc. (NASDAQ:CLSK) is executing successfully on its bitcoin mining growth strategy.
According to Insider Monkey’s fourth quarter database, 5 hedge funds were bullish on CleanSpark, Inc. (NASDAQ:CLSK), with collective stakes worth $16 million. Ken Griffin’s Citadel Investment Group is the biggest position holder in the company, with 784,803 shares valued at $7.4 million.
9. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 6
Headquartered in Vancouver, Canada, HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is a cryptocurrency mining company with operations in Canada, Sweden, and Iceland. The company mines and sells Bitcoin, Ethereum, and Ethereum Classic. HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) reported on April 6 a Bitcoin holding balance of 2,568 as of April 3, with 278.6 Bitcoins produced in March and a mining capacity at 2.0 EH/s.
On March 25, Canaccord Genuity analyst Joseph Vafi initiated coverage of HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) with a Buy rating and a $2.80 price target. According to the analyst, digital assets like Bitcoin and Ethereum “are now successfully exiting another test of their resiliency in the face of recent market volatility”. The analyst believes that miners such as HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) are positioned to benefit if Bitcoin prices climb higher. He believes the current setup for HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is “attractive on multiple fronts”.
According to Insider Monkey’s Q4 data, 6 hedge funds held long positions in HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE), with collective stakes amounting to $9.6 million, compared to 2 funds in the prior quarter, holding stakes in the company worth $195,000.
For exposure to the crypto market, HIVE Blockchain Technologies Ltd. (NASDAQ:HIVE) is a notable stock to consider, just like NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and PayPal Holdings, Inc. (NASDAQ:PYPL).
8. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders: 7
Bitfarms Ltd. (NASDAQ:BITF) is a Toronto-based crypto mining company that owns and manages server farms which mainly validate transactions on the Bitcoin Blockchain. On April 7, Bitfarms Ltd. (NASDAQ:BITF) announced that it received the final approval for a public listing on the Toronto Stock Exchange. Its common shares commenced trading on the TSX on April 8, 2022.
In the March 2022 mining and production update, Bitfarms Ltd. (NASDAQ:BITF) announced that it is swiftly approaching its goal of 3 exahash per second. A new location in Sherbrooke resulted in the accelerated hashrate, and the company expects a boost of the hashrate over 3 EH/s once its Leger location is live. Bitfarms Ltd. (NASDAQ:BITF) produces 12.5 Bitcoins per day, resulting in a daily revenue of $575,000, at a rate of $46,000 per BTC. The company continues to develop its infrastructure, assets, and capabilities to reach its 8.0 EH/s target by the end of 2022.
In the fourth quarter of 2021, Bitfarms Ltd. (NASDAQ:BITF) was found in the public stock portfolios of 7 hedge funds, who collectively held stakes worth $19.2 million, compared to 5 funds in the earlier quarter, holding stakes in Bitfarms Ltd. (NASDAQ:BITF) valued at $5.1 million. Ryan Tolkin’s Schonfeld Strategic Advisors is a prominent position holder in the company, with 270,000 shares worth $1.36 million.
7. Canaan Inc. (NASDAQ:CAN)
Number of Hedge Fund Holders: 8
Canaan Inc. (NASDAQ:CAN) was founded in 2013 and is based in Hangzhou, China. The company designs and develops integrated circuit final system products for bitcoin mining, artificial intelligence development, blockchain technology, and datacenter operations.
On March 16, using its existing cash balance, Canaan Inc. (NASDAQ:CAN) announced a share repurchase program worth up to $100 million of its outstanding American ordinary shares over the next two years.
DA Davidson analyst Hans Chung initiated coverage of Canaan Inc. (NASDAQ:CAN) on April 5 with a Buy rating and a $15 price target. The mining application-specific integrated circuit (ASIC) is an “attractive way” to play the bitcoin surge amid the ever-increasing network hash rate, the analyst told investors in a bullish thesis. He believes that Canaan Inc. (NASDAQ:CAN)’s entry to the American market is a “meaningful growth opportunity” in the short term, as the improving crypto adoption helps companies like Canaan Inc. (NASDAQ:CAN).
According to Insider Monkey’s fourth quarter database, 8 hedge funds were bullish on Canaan Inc. (NASDAQ:CAN), with combined stakes of $16.8 million. Yi Xin’s Ariose Capital is the biggest position holder in the company, with 1.45 million shares worth $7.50 million.
6. Hut 8 Mining Corp. (NASDAQ:HUT)
Number of Hedge Fund Holders: 9
Hut 8 Mining Corp. (NASDAQ:HUT) is a cryptocurrency mining firm based in Toronto, Canada. It is involved in industrial scale bitcoin mining operations. In partnership with TAAL, an enterprise blockchain infrastructure and service provider, Hut 8 Mining Corp. (NASDAQ:HUT) announced on April 19 that its digital asset mining operations will be completely self-mined.
On April 5, the company reported its production update for March. A total of 345 Bitcoins were mined, resulting in an average production rate of 11.1 BTC per day, with an installed operating capacity of 2.54 EH/s. The Bitcoin balance at the end of March 31 stood at 6,460.
On March 24, Stifel analyst Suthan Sukumar resumed coverage of Hut 8 Mining Corp. (NASDAQ:HUT) with a Speculative Buy rating and an $11 price target. The analyst sees Hut 8 Mining Corp. (NASDAQ:HUT) as one of the pioneers in the bitcoin mining space. With a “strong track record and healthy balance sheet from recent capital raises,” the company is well positioned to execute its growth strategy, the analyst told investors.
According to Insider Monkey’s fourth quarter database, 9 hedge funds reported long positions in Hut 8 Mining Corp. (NASDAQ:HUT), with combined stakes of $23.1 million, compared to 10 funds in the earlier quarter, with stakes in the company worth $43 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a prominent shareholder of the company, with 40,865 shares valued at $321,000.
In addition to NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and PayPal Holdings, Inc. (NASDAQ:PYPL), Hut 8 Mining Corp. (NASDAQ:HUT) is a significant contender in the crypto universe.
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Disclosure: None. 10 Bitcoin Mining Stocks to Buy Now is originally published on Insider Monkey.
