The cryptocurrency market is projected to reach $2.9 billion by 2023. Here’s an overview of five cryptocurrency mining stocks.
Blockchain stocks have been a hot commodity ever since the industry gained popularity in 2017, thanks to record-breaking cryptocurrency price increases.
While the sector has been met with challenges in 2018, it’s important to remember that the industry is still relatively new, and it isn’t uncommon for markets to experience growing pains in the early stages.
In terms of the cryptocurrency market outlook at a global scale, a Satis Group report states that the total market capitalization of all cryptocurrency markets will reach $500 billion in 2019, up from $236 billion in 2018; it is seen growing into the trillions over the next 10 years.
But who is going to mine those currencies? That’s where cryptocurrency mining stocks come in — “[m]ining is an integral process for the generation, transmission, and validation of transactions in cryptocurrencies,” says a report by Research and Markets.
“Whenever a transaction takes place and is validated, miners collect these transactions and include them into the block they are currently solving,” it continues.
Given that mining is integral to this market’s growth, it seems that interest in cryptocurrency mining stocks is likely to increase moving forward. On that note, here we profile five cryptocurrency mining stocks listed on Canadian exchanges; all are either working towards mining cryptocurrencies, mining a range of digital currencies or invested in companies mining cryptocurrencies.
The companies below are listed in alphabetical order and had market caps above $5 million at the time of publication. If we missed a Canadian-listed cryptocurrency mining stock you think should be included, please let us know in the comments.
1. 360 Blockchain (CSE:CODE)
Market cap: $6.7 million; current share price: $0.03
First on this cryptocurrency mining stocks list is 360 Blockchain, a company that exclusively invests in blockchain-based technology. It is based in Canada, but has also recently expanded into the US market. While the company itself doesn’t mine cryptocurrencies, its subsidiary SV CryptoLab does.
SV CryptoLab is a fully equipped cryptography and blockchain lab in Silicon Valley, and earlier this year 360 Blockchain raised its stake in the company to 80 percent.
“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.
2. DMG Blockchain (TSXV:DMGI)
Market cap: $17.16 million; current share price: $0.17
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 — this 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; and
- Forensics and blockchain analytics — including the investigation of bitcoin and ethereum transactions.
This year, DMG has been focused on its flagship cryptocurrency mining facility in BC. The 27,000-square-foot site is one of the largest operations of its kind in North America, and the company announced in November that it was officially operational. It is currently energized up to 60 megawatts, with that amount expandable up to 80 megawatts.
In other recent news, DMG announced the day before cannabis legalization in Canada that it would be launching a global supply chain management platform for the cannabis market.
3. HashChain Technology (TSXV:KASH)
Market cap: $9.1 million; current share price: $0.04
Next on this cryptocurrency mining stocks list is HashChain Technology, a company that mines a range of cryptocurrencies. The company is currently mining cryptocurrencies at two low-cost and low-energy data centers in North America.
As of November, HashChain had an inventory of 11,895 rigs with the ability to operate with 17.5 megawatts of power. “We are pleased with the direction of the company and will continue to look for strategic opportunities to increase our presence in the cryptocurrency space,” noted CEO and Director Patrick Gray at the time. He said strategic acquisitions in the second half of the year led to the increase.
4. HIVE Blockchain Technologies (TSXV:HIVE)
Market cap: $94.98 million; current share price: $0.29
This cryptocurrency mining stocks list wouldn’t be complete without HIVE Blockchain Technologies, which is strategically partnered with Genesis Mining, a cryptocurrency mining hashrate provider.
HIVE has been quiet on the news front in recent months, with its latest big news coming in August, when it released its financial results for the quarter ended June 30. The company reported income of $10,660,664, with a gross mining margin of $6,441,181 from the mining of digital currencies.
Harry Pokrandt, then HIVE’s president, CEO and director, said, “[o]ur financial position has advanced despite challenging market conditions which have seen major cryptocurrencies come under pressure this year.” Pokrandt has since retired, with Chairman Frank Holmes now in place as interim CEO.
5. Hut 8 Mining (TSXV:HUT)
Market cap: $144.04 million; current share price: $1.69
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 where it says electricity costs are low.
The company bills itself as a way for investors to get direct exposure to bitcoin “without the technical complexity or constraints of purchasing the underlying cryptocurrency.” In Q3 of this year it reported record revenue of $17.7 million, and said that it mined 1,978 bitcoin.
Which cryptocurrency mining stocks do think are the most auspicious, and why? Tell us in the comments.
This is an updated version of an article first published by the Investing News Network in May 2018.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: 360 Blockchain and HashChain Technology are clients of the Investing News Network. This article is not paid-for content.