Top crypto mining stocks to watch out for in 2022

· 4 min read
Top crypto mining stocks to watch out for in 2022

Introduction

The cryptocurrency sector is still in its infancy, but it is fast expanding. Cryptocurrencies, of which Bitcoin is the most well-known, are a relatively new type of digital currency. Cryptocurrencies make use of blockchain technology, which allows for the safe and decentralized recording of transactions without the use of a trusted third party. In order to validate transactions on a blockchain and generate new cryptocurrency coins, cryptocurrency mining companies employ computers to solve challenging computational tasks. After that, cryptocurrency can be kept and utilised for specific transactions, or it can be sold for fiat currency.

The Amplify Transformation Data Sharing ETF (BLOK), which tracks crypto mining stocks, has outperformed the market. Over the previous 12 months, BLOK has delivered a total return of 39.3 percent, outperforming the Russell 1000's total return of 23.6 percent.

Crypto mining stocks to watch out for

Marathon Digital Holding Inc.

On a year-to-date basis, MARA shares have risen 224.8 percent. MARA is one of North America's largest enterprise bitcoin self-mining companies. Its main focus is on blockchain technology and the creation of digital assets. It is benefiting from an increase in the number of miners deployed, rising bitcoin production, strong bitcoin holdings, and an increase in its hash rate. In the recently reported third quarter of 2021, the currently Zacks Rank #3 (Hold) participant produced 1,252 self-mined bitcoins, up 91 percent from the previous quarter's output. In addition, by the conclusion of the same quarter, the number of miners on the job had risen to 25,272. As of September 30, 2021, Marathon Digital had 7,035 bitcoins in its possession.

Apart from that, BITMAIN's purchase of 30,000 S19j Pro miners remains a significant step toward increasing bitcoin production. Marathon Digital also just struck an agreement with BITMAIN to purchase ANTMINER S19 XP (140 TH/s) bitcoin miners, which will be delivered between July and December 2022. This is also a significant advantage.

HUT 8 mining corp

Year-to-date, HUT shares have increased by 78.3 percent. HUT is a pioneer in the field of digital asset mining. The same is benefiting from the company's strong momentum in self-mining and increasing hosting services. Furthermore, HUT's growing bitcoin holdings and the possibilities for its NVIDIA GPU purchase are intriguing. In the third quarter of 2021, the currently Zacks Rank #3 player's bitcoin holdings surpassed $5,000. Furthermore, as of November 10, 2021, HUT's bitcoin balance was 5,053. Hut 8 Mining also received the whole fleet of high-performance NVIDIA GPUs, which were placed at the company's Medicine Hat facility. With the help of these servers, HUT aims to mine the Ethereum network via the Luxor pool. Furthermore, the change is expected to increase its overall operating rate by about 1,600 Gigahash. Apart from that, Hut's construction of the third mining site at North Bay, Ontario, is notable.

NVIDIA

On a year-to-date basis, NVDA shares have returned 129.8 percent. NVDA is benefiting greatly from the increased popularity of its GPUs in the cryptocurrency arena, which gives it a competitive advantage over other chipmakers. On the strength of its major launch of Cryptocurrency Mining Processor (CMP), which is perfect for professional mining, NVDA remains well-positioned to capitalize on the growing demand for cryptocurrency mining. Because they have a lower peak core voltage and frequency, these processors are well-suited to increasing mining power efficiency. The introduction of Cryptocurrency Mining Processors in its market platform generated $105 million in sales in the third quarter of fiscal 2022, according to Zacks Rank #2 (Buy).

BIT Mining Ltd.

BIT Mining is a major cryptocurrency mining firm with a long-term goal of creating value in the cryptocurrency market. Its operations include bitcoin mining, mining pools, and data centers. The Company owns BTC.com, the world's most popular blockchain browser, as well as the BTC.com mining pool, which offers multi-currency mining services for BTC, BCH, ETH, and LTC. Bee Computing, a manufacturer of 7-nanometer cryptocurrency mining machines, has also entered into a binding agreement with the Company to complete the Company's vertical integration with its supply chain, boost its self-sufficiency, and reinforce its competitive position. Bit Mining released financial results for the third quarter of its fiscal year (FY) 2021, which ended on September 30, 2021, in mid-November. The company's net loss increased to $41.7 million, up from $6.3 million the previous quarter.

Canaan Inc.

Canaan Inc., situated in Hangzhou, China, manufactures bitcoin mining hardware. According to independent market research firm Frost & Sullivan, the company was the world's second-largest designer and producer of Bitcoin mining machines in terms of computational power in the six months ended June 30, 2019. During the same time period, it sold mining devices that accounted for 21.9 percent of the total computing power of all Bitcoin mining computers sold around the world. Canaan invested heavily in the research and development of artificial intelligence (AI) processors in addition to manufacturing bitcoin mining equipment.

Hive Blockchain

HIVE Blockchain Technologies Ltd is a blockchain corporation established in Canada that specializes in the mining and sale of digital currency. In Canada, Sweden, and Iceland, the company has green energy-powered data center facilities that manufacture minted digital currencies. Ethereum, Ethereum Classic, and Bitcoin are the digital currencies used by the company. The company also provides stockholders with digital currency mining operational margins as well as a crypto coin portfolio. A data center campus is also owned by the company in New Brunswick. Canada, Sweden, Iceland, and Bermuda are among the company's geographic segments. The firm offers services in the blockchain sector as well as traditional financial markets. DeFi Technologies is owned by hive Blockchain, which owns a 4.9 percent share of the company. This exposes the business to the fast-growing decentralized finance industry. In addition, Network Media Group has announced a strategic investment by Hive Blockchain. This exposes the corporation to the NFT industry.