7 Crypto Miners Minting Money

Bitcoin (BTC-USD) has been on an impressive run over the past two weeks, up 38%. In fact, the cryptocurrency looks like it could be on its way back to $30,000. Not only is that good news for BTC investors, but it’s also a solid catalyst for crypto miners. That’s because mining revenue depends on the direction of bitcoin. Where bitcoin goes, crypto mining stocks usually follow.

Even better, there are predictions bitcoin could see $100,000 this year. That’s what Marshall Beard, chief strategy officer at cryptocurrency exchange, says The twinstold CNBC. As the article notes:

Part of the industry’s positive view of bitcoin right now actually stems from how the asset has performed during the banking crisis triggered by the collapse of Silicon Valley Bank and the failure of two crypto-friendly lenders Silvergate Capital and Signature Bank.

Instead of crashing, bitcoin rallied.

Bitcoin supporters say this is proof that bitcoin offers an alternative to the traditional banking system as a place for people to keep their money safe.

If bitcoin can push higher, so will these top crypto miners and related exchange-traded funds (ETFs).

ProShares Bitcoin Strategy ETF (BITO)

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On March 15, I highlighted an opportunity in Pro Shares Bitcoin Strategy ETF (NYSEARCA:BITO) when it was trading around $15 per share. It closed Friday at $17.16, up 14% in just seven trading days and close to my original price target of $17.50. From here, I’d like to see BITO close the gap around $22.50, which is about 31% above today’s price.

The ETF tracks the performance of spot bitcoin and was the first bitcoin-linked ETF to launch in the US. It is also the world’s largest and most traded cryptocurrency ETF, according to ProShares.

By mimicking the price of bitcoin as closely as possible without investing in the cryptocurrency itself, BITO offers exposure to bitcoin combined with the ease of investing in an ETF. As noted by Money.com, “Like all crypto ETFs, part of the allure of BITO is that investors don’t have to deal with cryptocurrency wallets and private keys, but can instead invest through a broker they already use.”

BITO has a cost share of 0.95%.

Global X Blockchain & Bitcoin Strategy ETF (BITS)

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Global X Blockchain & Bitcoin Strategy ETF (NASDAQ:BITS) is another crypto ETF I highlighted recently. Since my March 15 article, BITS is up nearly 11% and could see the stock continue its run.

According to Global X, BITS “takes long positions in US-listed bitcoin futures contracts and invests, directly and/or indirectly, in companies that are positioned to benefit from the increased use of blockchain technology. BITS will not invest directly in bitcoin, and it currently provides exposure to blockchain companies through other ETFs, including its affiliates Global X Blockchain ETF (NASDAQ:BKCH).”

BKCH counts a number of the crypto miners on today’s list among its top holdings.

BITS has a cost share of 0.65%.

Marathon Digital (MARA)

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Moving on from ETFs to individual crypto miners, Digital Marathon (NASDAQ:MARA) is “building one of the largest bitcoin mining operations in North America,” according to the company.

The crypto miner’s shares have followed the price of bitcoin higher, jumping 46.5% in the past two weeks to trade at $7.81. If the stock can break above resistance around $9.57, we could see it move back to $12. That would be a gain of more than 50% from today’s level.

The company’s latest earnings were nothing to write home about. But last month, Marathon Digital managed to increase its average bitcoin produced per day by 10% during January. It produced 683 bitcoin in February and “powered nearly 19,000 Bitcoin miners across multiple facilities.”

Finally, it increased its hashrate by 30% month over month to 9.5 exahashes per second (EH/s).

Riot Platforms (RIOT)

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Riot Platforms (NASDAQ:RIOT) is another of the leading crypto miners that has surged since mid-March, with shares surging 63% to $8.63. If the stock can break above $10.52, it could see $15 shortly after, which is nearly 74% above today’s price.

According to the company’s production and operations update from February, it produced 675 BTX, up 55% year over year. As of February 28, Riot had 7,058 BTC. And that was after selling 600 BTC last month and netting them roughly $14.2 million. In addition, Riot’s fleet of more than 87,000 miners had a hash rate capacity of 9.8 EH/s.

“February was another month of excellence for Riot, where we produced 675 Bitcoin in the shortest month of the year, and despite one of the largest increases in mining difficulty in recent history,” said Riot’s Chief Executive Officer (CEO) Jason Les. “We have also continued to make progress on repairs to our immersion buildings, including Building G, where we now expect a return to full operation by the second half of 2023. Once achieved, this will bring back 1.9 EH/s of hash -rate currently offline and not included in our reported hashrate capacity.”

This additional capacity could prove to be another positive catalyst for RIOT.

Bit Digital (BTBT)

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Shares of bitcoin miners Bit Digital (NASDAQ:BTBT) has risen 40% in the past two weeks to trade at $1.40.

In February, Bit Digital produced 108.2 bitcoins. While this was down 19% from January, the company noted that the decline was partly due to the fact that there are fewer days in the month. It had 13,645 active bitcoin miners at the end of February with a hash rate of 1.30 EH/s.

Bit Digital noted that the fair market value of the 696.5 BTC holdings was approx 16.1 million dollars on February 28, while its 7,332.6 Ethereum (ETH-USD) tokens had one fair market value of approx 11.8 million dollars. And remember, this was before the recent rally in the crypto sector.

Back in October, InvestorPlace Contributor Josh Enomoto pitched BTBT as a good buy for young investors, noting that it had a stable balance sheet and no debt, which should help the company withstand volatility in the crypto sector.

HIVE Blockchain (HIVE)

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HIVE Blockchain (NASDAQ:HIV) is another of the best crypto miners to consider. After finding support around $2.25, shares have jumped more than 30% in the past two weeks to $3.12, where they are consolidating. From here, I would like to see the stock challenge the overhead resistance around $4.25 initially. That’s 36% above today’s price.

HIVE produced 250 bitcoin in February with an average hash rate of 2.75 EH/s. The company also noted that it reached its target of 3 EH/s by mining at full capacity of 3,080 PH/s. And it ended the month with 2.81 EH/s mining capacity.

“Our team has focused on profitability, with 25% gross mining margins in our most recent fiscal quarter for the three months ending December 31, 2022,” said Executive Chairman Frank Holmes. “We seek to optimize profit from gross mining margins, on a monthly basis, by optimizing the efficiency of our operating fleet, and strategic curtailment or grid balancing.”

Hut 8 Mining (HUT)

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Last up on our list of crypto miners to consider is Cabin 8 Mining (NASDAQ:COTTAGE). As with the other names on today’s list, it has rebounded strongly over the past two weeks, rising 38%.

Although earnings have not been that high in recent quarters, I expect them to improve along with the price of bitcoin.

The company’s revenue fell by 13.3% to $150.7 million in 2022. However, the amount of bitcoin mined increased by 28.1% to 3,568 “due to an increase in hash rate from the expansion of the company’s fleet of miners and mining activities” .

Investors can expect HUT to continue trading higher with the price of bitcoin if this rally holds.

At the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.