The Best Bitcoin Mining Stocks for 2022
South_agency/Getty Images
If you’re looking to stake a claim in the crypto world during this bear market—but don’t want to learn how to use a crypto exchange, manage cold wallet storage, or otherwise worry about your investment—Bitcoin mining stocks may be the answer.
Investing in public companies that mine Bitcoin offers exposure to the crypto world without many of the risks associated with holding crypto, which is a deregulated, decentralized asset.
On the other hand, Bitcoin mining stocks are regulated by the Securities and Exchange Commission, are easily traded on public exchanges through brokers or investment apps, and work just like any other stock.
Are Bitcoin Mining Shares a Good Investment?
Right now, the top Bitcoin mining stocks are down from their highs last year. That means it’s important to evaluate the company’s fundamentals and do your best to determine the true value of the mining company before investing. When the crypto winter ends, these companies will be well positioned to make money as the value of the assets they mine rise.
Canaan
Canaan has been ranked as one of the best crypto mining stocks in recent months, showing the fewest losses during the crypto winter. A strong quarterly earnings report in the second quarter of 2022, combined with expertise in ASIC chips and the fact that the Bitcoin mining technology was one of the first on the market, gives it an advantage.
Bitfarms Ltd.
Bitfarms Ltd., founded in 2017, now has 50,000 miners in operation with 9 farms in 4 countries. The company’s farms run on low-cost, hydropower – an advantage in an industry that has been criticized for its lack of sustainability. Its proprietary software and innovative management team promise global expansion for the company, which could make it one of the best Bitcoin mining stocks to invest in today. Bitfarms was also ranked as one of the best performing mining stocks, with the smallest declines in 2022.
Riot Blockchain
Riot Blockchain stock is currently on the rise, following a report on the amount of Bitcoin mined in August, which was down 15% from this time last year, but up from July 2022. With great potential ahead, several analysts rate Riot just undervalued now.
HIVE Blockchain Technologies
Like Bitfarms Ltd., HIVE Blockchain Technologies uses green energy to mine Bitcoin and Ethereum. The company was the first publicly traded crypto mining company. According to Zack’s data, HIVE may be significantly undervalued right now. Analysts expect returns in the coming months.
Hut 8 Mining Corp.
Analysts are positive on Hut 8 Mining Corp., with 4 analysts giving it a “buy” rating and one giving it a “hold”, according to CNN. The stock is currently trading at $2.09 and investors give it a median target of $4.75, with a high estimate of $5.00 and a low estimate of $3.89.
Hut 8 Mining stands out as one of the world’s largest crypto mining companies. The company is showing outstanding ESG performance compared to its peers, posting strong quarterly revenue of $53.3 million in the first quarter of 2022, according to a company press release.
Fast
Stronghold has been identified by Bitcoinist.com as one of the most undervalued Bitcoin stocks, which would make it a huge deal at the current price of $1.46.
As more mining companies aim to make Bitcoin mining more environmentally friendly, Stronghold is taking an innovative approach by running its operations through reclaimed coal waste across Pennsylvania.
Nuclear science
The largest Bitcoin mining company in the world, Core Scientific, is currently focused on growth.
It sold most of its Bitcoin holdings in June 2022 to pay off debt and add to its arsenal of mining machines. The Austin, Texas-based company also entered into a $100 million purchase agreement with B. Riley Principal Capital II. This will further increase the company’s liquidity as it continues to streamline operations.
As a result, seven out of seven analysts polled by CNN call the stock a “buy now.”
Marathon Digital Holdings
Besides Core Scientific, Marathon Digital Holdings is one of the largest Bitcoin mining operations in the US Marathon has a mining facility co-located with Beowulf Energy in Hardin, Montana, which allows Marathon to keep 100% of its mined Bitcoin. The location gives Marathon extensive expansion opportunities. Unlike many of the stocks on this list, Marathon is not undervalued. However, experts say that this could give the share more long-term stability in price.
Final Take
Investing in Bitcoin mining companies can be as easy as talking to a financial advisor, or using a stock trading platform like TD Ameritrade, Fidelity or Robinhood. If you want to gain exposure to Bitcoin while the crypto winter is still driving prices down, investing in mining companies may be an easier way to do so.
Bitcoin Mining Stock FAQ
- What is the best Bitcoin mining stock?
- 8 Bitcoin mining stocks stand out in our research as solid investments. Hut 8 Mining, Stronghold, HIVE and Canaan are all undervalued in the eyes of investors right now, making them a bargain. Because of their low trading prices, these stocks offer the potential for big rewards with a low cost of entry. Although trading Bitcoin and crypto-related investments, including crypto ETFs and stocks of mining companies, are still considered highly speculative and as a result high-risk, the low prices of these stocks can help investors get into the game with less risk. Additionally, since stocks are regulated by the SEC, they are inherently less risky than investing directly in Bitcoin or other cryptocurrencies.
- Is it profitable to invest in Bitcoin mining?
- Experts say that Bitcoin mining will remain extremely profitable in 2022. Bitcoins mined today are worth less than they were worth in the early days of crypto, due to a process called halving, where the rewards for mining Bitcoins decrease as time flies. In 2009, miners would earn 50 BTC for each new block discovered and mined. The next halving is set to happen in 2024. Until then, miners receive 6.25 BTC for every coin mined. Even at this rate, Bitcoin mining can be extremely lucrative. Professional miners today can earn $20 million in Bitcoin per day or $600 million per month. Due to the price of mining machines, which can range from $2,000 to $20,000, according to BuyBitCoinWorldwide.com, large mining companies now dominate the industry. The best way for individuals to make money from Bitcoin mining is to invest in mining company stocks, such as those listed above.
- Who is the biggest Bitcoin miner?
- Core Scientific stands as the largest Bitcoin mining company in the world.
The information is accurate as of September 8, 2022.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, assessments or recommendations expressed in this article are the author’s alone and have not been reviewed, approved or otherwise endorsed by any entity mentioned in this article.
Our in-house research team and on-site financial experts work together to create content that is accurate, unbiased and up-to-date. We fact-check every single statistic, quote and fact using reliable primary sources to ensure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial guidelines.
