Blockchain

bitcoin being compressed with a vise

According to one report, the hardware market for mining cryptocurrencies is projected to reach US$2.58 billion by 2028. What stocks should investors consider?

As bitcoin and other digital stores of wealth gain popularity, cryptocurrency mining stocks offer another investment opportunity for those who believe in the future of this technology.

Although the cryptocurrency market is marked by high volatility, analysts such as Justin Hartzman, CEO and co-founder of CoinSmart Financial (NEO:SMRT,FSE:IIR), believe it can be a rewarding one for investors.

“There may be some bumps along the way, but the crypto market tends to reward investors who hold with conviction, and we expect this trend to continue in the future as the digital economy’s user base grows and new use cases continue to be built,” Hartzman told the Investing News Network.


The global cryptocurrency mining market is forecast to reach nearly US$5.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 28.5 percent between 2021 and 2028.

“Massive demand for cryptocurrency is one of the leading factors driving the growth of the cryptocurrency mining market across the globe,” notes Brandessence Market Research. “Several types of cryptocurrencies such as bitcoin, bitcoin cash, Ethereum, ripple, litecoin, dashcoin, and many more are increasingly using throughout the world.”

According to Verified Market Research, the cryptocurrency mining hardware market was worth US$1.49 billion in 2021 and is projected to grow at a CAGR of 7.05 percent to reach a value of US$2.58 billion by 2028.

Here the Investing News Network profiles six cryptocurrency mining stocks that are publicly traded on North American exchanges. The companies are listed in descending order of market capitalization, with data collected using TradingView’s stock screener on April 5, 2022.

US cryptocurrency mining stocks

1. Marathon Digital Holdings (NASDAQ:MARA)

Market cap: US$2.71 billion

Marathon Digital Holdings was one of the first cryptocurrency mining companies to begin trading on the NASDAQ. The digital assets company is focused on building North America’s largest and lowest-cost mining operation.

In Q2 2021, Marathon revealed a deal with Compute North for a 300 megawatt (MW) facility in Texas that was to house 73,000 miners and be 100 percent carbon neutral. In April 2022, the company announced it had produced a record 1,259 bitcoins in Q1 2022, up 556 percent year-on-year and up 15 percent from Q4 2021.

2. Riot Blockchain (NASDAQ:RIOT)

Market cap: US$2.26 billion

Bitcoin miner Riot Blockchain is another of the relatively few cryptocurrency mining stocks trading on the NASDAQ. Aside from mining bitcoin itself, the company has multiple subsidiaries working in different aspects of the business, including one that hosts bitcoin mining equipment for clients.

In March 2022, Riot Blockchain produced 511 bitcoins, an increase of approximately 176 percent compared to March 2021. As of early April 2022, the company had a deployed fleet of approximately 42,919 miners, and boasted a hashrate capacity of 4.3 exahashes per second.

3. Canaan (NASDAQ:CAN)

Market cap: US$1.08 billion

Based in Hangzhou, China, Canaan is a cryptocurrency mining hardware company that invented one of the first ASIC-powered bitcoin mining machines back in 2013. Today, the technology company is one of the world’s largest cryptocurrency mining hardware providers. Canaan also develops edge-computing artificial intelligence chips for commercial use based on Risc-V architecture.

In March 2022, Canaan’s share price received a big boost after the release of the company's Q4 2021 report. It highlights revenue of US$342.8 million for the period, up more than 60 percent compared to the previous quarter.

Canadian cryptocurrency mining stocks

1. Hut 8 Mining (TSXV:HUT,NASDAQ:HUT)

Market cap: C$1.2 billion

Hut 8 Mining is one of the world’s largest cryptocurrency mining companies, specializing in bitcoin and ethereum. It has more than 121 MW of existing power capacity, three digital asset data mining facilities, five multi-tier data centers for high-performance computing and more than 400 commercial high-performance computing customers. As of the end of February, the company’s self-mined bitcoin held in revenue stock stood at 6,115.

Hut 8 Mining saw its annual revenues increase by 327 percent in 2021 as the bitcoin price rallied. The company has said it will use the windfall to further invest in diversifying its business into data centers.

2. HIVE Blockchain (TSXV:HIVE,NASDAQ:HIVE)

Market cap: C$1.04 billion

Mining digital assets such as ethereum, ethereum classic and bitcoin, HIVE Blockchain is a cryptocurrency company that operates mining facilities in Sweden, Norway and Iceland. The company was the first publicly traded cryptocurrency miner, listing on the TSX Venture Exchange in 2017.

HIVE’s growth plans for 2022 include securing additional ASIC and GPU hardware that will increase its hashrate to 6.2 exahashes of bitcoin equivalent in one year, up from 3.3 exahashes of bitcoin equivalent as of March.

3. Bitfarms (TSXV:BITF,NASDAQ:BITF)

Market cap: C$885.51 million

Blockchain infrastructure firm Bitfarms is one of North America’s largest cryptocurrency mining operators. The firm has five hydropower-operated facilities in Quebec, Canada, where it provides computing power to mine cryptocurrencies like bitcoin. It earns fees from cryptocurrency networks for securing and processing transactions.

In March 2022, Bitfarms reported that it was working to finalize the first 12 MW of capacity at its Bunker site in Sherbrooke, Quebec. The capacity upgrade will bring over 3,000 new miners into operation and will add over 300 petahashes per second to the company’s online hashrate.

This is an updated version of an article first published by the Investing News Network in 2018.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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