Investing in Cryptocurrency Mining Stocks

- November 7th, 2019

According to one report, the hardware market for mining cryptocurrencies is projected to reach US$2.2 billion by 2022.

While cryptocurrency mining stocks were met with challenges in 2018, it’s easy to forget that the industry has made a number of breakthroughs in 2019.

In terms of the cryptocurrency mining hardware market outlook alone, a Technavio report states that US$2.2 billion will be generated on a global scale.

As Research and Markets explains, mining is central to the very process of validating cryptocurrency and bitcoin transactions.

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“Whenever a transaction takes place and is validated, miners collect these transactions and include them into the block they are currently solving,” the report says.

On that note, here we profile five cryptocurrency mining stocks that are publicly traded on North American exchanges. The companies are listed in terms of market capitalization according to Barchart as of November 7, 2019.

1. Hut 8 Mining (TSXV:HUT)

Market cap: C$162.79 million; current share price: C$1.80

Hut 8 Mining is a cryptocurrency mining and blockchain infrastructure company established through an exclusive partnership with the Bitfury Group, the world’s leading full-service blockchain tech company. It has operations in Alberta’s Medicine Hat and Drumheller, with 94 data centers, 109.4 megawatts (MW) of power and mining speed capabilities of 963 petahashes per second for its mining rigs. A petahash is equivalent to one quadrillion hashes per second.

2. HIVE Blockchain (TSXV:HIVE)

Market cap: C$52.11 million; current share price: C$0.16

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. Its mining activities operate at 300 petahashes per second, with 3.8 MW in power capacity.

Though HIVE had experienced contract disputes with Genesis Mining, a strategic partner and major shareholder of the company, HIVE has since resolved its issues. Since then, it has established a third-party contract with Sweden-based Blockbase.

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3. DMG Blockchain (TSXV:DMGI)

Market cap: C$12.15 million; current share price: C$0.13

DMG Blockchain manages bitcoin mining for third parties at a global scale. The company also manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. Its products and services include:

  • Mining as a service, which allows anyone around the world to mine for cryptocurrencies
  • Blockchain-based supply chain platforms — the company is working with industry stakeholders to create platforms that ensure “complete provenance of controlled products” within the supply chain
  • Forensics and blockchain analytics, including the investigation of bitcoin and ethereum transactions

At 27,000 square feet, DMG’s flagship cryptocurrency mining facility, located in British Columbia, is one of the largest operations of its kind in North America. It is currently energized up to 60 MW, with the potential to reach 80 MW.

Along with its mining operations, DMG has launched a global supply chain management platform for the cannabis market.

4. Marathon Patent Group (NASDAQ:MARA)

Market cap: US$10.84 million; current share price: C$1.38

With a mining facility located in Quebec, Marathon Patent Group was one of the first cryptocurrency mining companies to begin trading on the NASDAQ. It has deployed over 6,000 Bitmain miners with its 2 MW of power dedicated to mining bitcoin. The company has welcomed Jesse Lund, former head of blockchain at IBM (NASDAQ:IBM), to its management team.

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5. Codebase Ventures  (CSE:CODE)

Market cap: C$2.2 million; current share price: C$0.03

Codebase Ventures, formerly named 360 Blockchain, is a company that exclusively invests in blockchain technology. It is based in Canada, but has also expanded into the US market.

While the company itself doesn’t mine cryptocurrencies, its subsidiary SV CryptoLab is primarily involved in mining activities. SV CryptoLab is a fully equipped cryptography and blockchain lab in Silicon Valley. Codebase Ventures raised its stake in the company to 80 percent in 2018.

“Our model is adaptive and is being deployed in such a way that we foresee tremendous upside with the company’s own crypto-mining activities and very importantly, proprietary offerings being developed for other companies involved in mining operations,” Jim Cerna, director of SV CryptoLab, said at the time.

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, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Codebase Ventures is a client of the Investing News Network. This article is not paid-for content.

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