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 significant popularity in 2017 thanks to record-breaking cryptocurrency price increases.
While the overall sector has certainly been met with challenges in 2018, it’s important to remember the industry is still relatively new–meaning 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 Research and Markets report states the industry will reach $2.9 billion by 2023, up from $541 million in 2017 and growing at a compound annual growth rate of 32.1 percent during that period.
“Mining is an integral process for the generation, transmission, and validation of transactions in cryptocurrencies,” the report states. “Whenever a transaction takes place and is validated, miners collect these transactions and include them into the block they are currently solving.”
With so much growth going into the industry over the next five years, investment interest in cryptocurrency mining stocks will also no doubt increase. On that note, here the Investing News Network (INN) profiles five cryptocurrency mining stocks that are either working towards mining cryptocurrencies, mine a range of digital currencies, or have interests in companies mining cryptocurrencies for investor consideration.
The companies below are listed in alphabetical order, with all numbers and figures current as of market close on May 14, 2018.
1. 360 Blockchain (CSE:CODE)
Market cap: $15.52 million; current share price: $0.10
First on our cryptocurrency mining stocks list is 360 Blockchain, a company that primarily invests in blockchain-based technology. While the company itself doesn’t mine cryptocurrencies, its subsidiary SV CryptoLab does.
As of January 2018, 360 Blockchain holds a 60 percent interest in SV CryptoLab. SV CryptoLab expanded its cryptocurrency mining operation to include on-site bitcoin mining in November 2017. According to the release, the cloud-base cryptocurrency mining operation consists of more than 370 ASIC-microprocessors, which will be used to exclusively mine bitcoin.
2. DMG Blockchain (TSXV:DMGI)
Market cap: $40.29 million; current share price: $0.40
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: 1) mining as a service, which is the management of bitcoin mining described earlier. The mining-as-a-service allows anyone around the world to mine for cryptocurrencies; 2) blockchain-based supply chain platform, which the company is working with licensed producer to create a platform that ensure “complete provenance of controlled products” within the supply chain; and 3) forensics and blockchain analytics, which includes the investigation into bitcoin and ethereum transactions.
DMG announced in mid-March that its flagship cryptocurrency mining facility had completed phase 1 of the study and that phase 2 was officially underway. Phase 2 will allow for the focus on optimizing power systems for cryptocurrency mining, which includes measuring the larger-scale system, energy consumption, peak kilowatt demand, power fact and system harmonics.
The mining facility will be estimated to have power capacity of up to 85 megawatts once complete, with 40 megawatts of near-term power capacity expected to go online mid-2018.
3. HashChain Technology (TSXV:KASH)
Market cap: $25.3 million; current share price: $0.23
Next on our cryptocurrency mining stocks list is HashChain Technology, a company that mines a range of cryptocurrencies. The company is currently mining cryptocurrencies in two low cost and low energy data centers in North America with plans to reach 20 megawatts of mining by the end of this year, with that number increasing to 70 megawatts by the end of 2020.
In April, HashChain announced that it had received a shipment of 3,000 mining rigs to its Montana mining facility. Of the 3,000 rigs received in that shipment, 1,000 were deployed, giving the company 1,870 total rigs operating. At the beginning of May, the company announced that it had signed an agreement with Block One Capital (TSXV:BLOK) to acquire a 100 percent interest in TG`1 Ventures, which owns 1,000 ris, with 100 S9 Antiminer Rigs deployed in Montana.
4. HIVE Blockchain (TSXV:HIVE)
Market cap: $398.40 million; current share price: $1.31
Our cryptocurrency mining stocks list wouldn’t be complete without HIVE Blockchain, who is strategically partnered with Genesis Mining, a cryptocurrency mining hashrate provider.
HIVE Blockchain owns a GPU-based cryptocurrency mining facility in Iceland, which was completed in May 2017, and produces ethereum. In January of this year, the company began its ethereum mining operations in Sweden and expects that the facility will be able to mine bitcoin and bitcoin cash by September. HIVE then announced in late March its plans to acquire all of the issued and outstanding shares of Kolos Norway AS. The Kolos project will run on 100 percent green renewable power.
At the beginning of May, the company announced it had increased its power capacity at its Sweden mining facility by 6.8 megawatts to 24.2 megawatts, representing an increase of 39 percent.
5. Neptune Dash (TSXV:DASH)
Market cap: $25.66 million; current share price: $0.32
Closing out our cryptocurrency mining stocks list is Neptune Dash, a company that builds and operates the Dash Masternodes. Dash is a cryptocurrency, which the company says was created to meet the scaling challenges of bitcoin. The Masternodes are servers on the Dash network and perform functions on the blockchain network such as InstantSend and PrivateSend.
In short, Dash Masternodes have a range of functions, including: private peer-to-peer transactions between parties; serving as a government function, voting on treasury disbursements of the Dash-block reward assigned to the Dash DAO (Decentralized Autonomous Organization).
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This is an update to an article originally published on the Investing News Network in 2018.
Securities Disclosure: I, Jocelyn Aspa, 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.