Bitcoin had a big rally in early 2024, reaching an all-time high of just over 73,000. This, coupled with the adoption of Bitcoin ETFs and the recent halving of Bitcoin, has sparked a new wave of investor interest in the crypto space. If you’re interested in making an investment in this space, you should take a look at Bitcoin mining stocks.
With that in mind, I’ve broken down my five most sensible Bitcoin mining stocks, ranked in descending order from my favorite to least favorite.
As a reminder, Bitcoin miners play a dual role in the Bitcoin ecosystem. They help determine the transactions and integrity of Bitcoin network paintings. For their job of determining transactions, miners obtain Bitcoin (which allows coins to be added to the overall supply). .
Bitcoin mining requires solving complex mathematical problems, which require heavy calculations and massive amounts of electrical power. From a business perspective, mining Bitcoin profitably requires the cheapest electrical power while also maximizing the amount of BTC that can be mined.
The profitability of Bitcoin mining fluctuates greatly as it is closely tied to the value of BTC. Now let’s move on to my picks of the five most sensible Bitcoin mining stocks to look out for.
My research focuses on Marathon Holding’s investor presentation published on March 19, 2024.
2023 Revenue: $387 million
2023 Revenue: $261 million
BTC held: 16,930 BTC
When it comes to Bitcoin mining stocks, Marathon Holdings is one of the biggest players in the industry and has one of the largest portfolios of mining sites in Paraguay, Africa, and the United Arab Emirates.
Marathon also plans to identify full ownership of its sites. It recently acquired 3 wholly-owned BTC mining farms, which helped increase its steady percentage of owned services from 4% to 54%. Acquiring greater ownership of your services allows Marathon to be in charge of you. consistent with part, increasing control/efficiency, and expanding your ability to optimize your operations using your own technology.
Marathon also adopts a very environmental strategy for Bitcoin mining. The company said it will be 100 percent carbon neutral by 2023 and that 55% of its energy will come from sustainable resources by the fourth quarter of 2023. This stance will undoubtedly help Marathon Digital curry in favor of investors, government agencies, and the general public as the crypto industry matures.
My research focuses on Riot Platform’s investor presentation published on April 18, 2024.
2023 Revenue: $281 million
2023 Revenue: -$49 million
BTC Held: 8,490
Riot Platforms is one of the first names that come to mind when we think of Bitcoin mining stocks. After Marathon, Riot is the second-largest BTC holder among Bitcoin miners. It has 8,490 Bitcoins, which is more than the maximum of other miners. That’s also more than SpaceX or Block Inc. (NYSE: $SQ).
Riot Blockchain is also a leader when it comes to “downsizing,” which involves strategically impeding operations. When the power grid is under a lot of pressure, Riot can shut down operations and direct their energy consumption elsewhere. For this sacrifice, Riot receives a refund from the network operator.
Downsizing can stabilize power grids, making the practice popular with investors, government agencies, and the general public. But the reduction is beneficial for Riot. Riot can use the reduction to curry favor with external stakeholders, earn energy credits, and save money on transportation costs. Riot estimates to save $1 million per month in streaming costs through the reductions.
Riot also reinvests a lot into its business. Basically builds/expands its Rockdale and Corsicana plants. For those reasons, I consider Riot Platforms to be one of the most sensible Bitcoin mining stocks to buy.
My research focuses on CleanSpark’s investor presentation published in February 2024.
2023 Revenue: $168 million
2023 Revenue: -$137 million
BTC held: 3,573 BTC
CleanSpark has six BTC mining facilities, usually located throughout Georgia. Over the years, CleanSpark has shown a steady expansion of its profits and a commitment to buying and holding Bitcoin. This Bitcoin mining company is developing and has done a smart job to weather the numerous downturns. in the crypto market.
The main fear, however, is that CleanSpark’s expenses are rising as fast as its revenue. In 2023, the company reported a net loss of $136 million, up from a loss of $57 million in 2022.
My research focuses on Cipher Mining’s investor presentation released on March 5, 2024.
2023 Revenue: $127 million
2023 Revenue: -$26 million
BTC held: 1,433 BTC
Cipher Mining is rarely as big as the others on this list, which is why I’ve indexed it at number 4. However, this Bitcoin mining company is developing rapidly. It reported earnings of $126 million in 2023, a huge accumulation from just $3 million last year. If this expansion is any indication of executives’ plans moving forward, then you need to keep Cipher Mining on your radar.
Cipher Mining has recently had 3 facilities: Odessa, Alborz and Bear
My research focuses on Iris Energy’s investor presentation published in February 2024.
2023 Revenue: $75. 5 million
2023 Revenue: -$172 million
Market Cap:
I’ve included Iris Energy in this list because it’s one of the few diversified Bitcoin mining corporations. Most BTC mining corporations are fully invested in mining. On the other hand, Iris Energy owns and operates knowledge centers. It uses those knowledge centers for Bitcoin mining, cloud AI services, and other high-powered calculations.
With this in mind, Iris Energy may be poised to take advantage of the popularity of AI, in addition to cryptocurrencies. On this basis alone, Iris Energy is worth following for years to come. However, with a net loss of $172 million in 2023, Iris Energy obviously still has work to do.
There are a few other Bitcoin mining stocks worth looking into, even if they’re not in my top five. These corporations are:
The Bitcoin mining field is a desirable combination of new technologies (mining platforms and blockchain) and old technologies (energy). The industry evolves almost every quarter, with miners racing to find the most productive, reasonable, and effective sources of energy. to maximize your production. For a successful business, the potential benefits are enormous. I look ahead to see the evolution of the industry in the coming years. “
I hope you found this article helpful in educating yourself on the five most sensible Bitcoin mining stocks to buy. If you’d like to receive more information, sign up below to receive alerts on new articles.
Disclaimer: This article is intended for general information and educational purposes only. It should not be construed as a monetary recommendation as the author, Ted Stavetski, is not a financial advisor.
Ted Stavetski is the owner of Do Not Save Money, a financial blog that encourages readers to invest money instead of saving it. He has five years of experience as a company and has written for companies such as SoFi, StockGPT, Benzinga, and more.