Bitcoin mining, the process of verifying and adding transactions to the Bitcoin blockchain, is mostly in the domain of large companies commanding fleets boasting tens of thousands of highly specialized Bitcoin miners. As the price of Bitcoin continues to rise, so does the profitability of mining, increasing the market prospects of Bitcoin mining companies.
Most of the large players in the space are publicly traded, allowing everyday investors to gain exposure to the BTC mining industry and, in turn, Bitcoin itself. However, deciding which company to invest in can be difficult, especially if you are relatively new to the space.
In this article, we are going to examine the best Bitcoin mining stocks to help you decide which might be a good investment for you.
The best Bitcoin mining stocks to invest in 2024:
- Riot Platforms – The best Bitcoin mining stock overall
- CleanSpark– A Bitcoin mining company focused on clean energy
- Marathon Digital– A leader in operational hash rate
- TeraWulf– A smaller BTC mining company with strong upside potential
- Hut 8 Mining – A Canadian Bitcoin miner expanding in electricity generation
The 5 best mining stocks: Examining top mining companies for 2024
In the following section, we are going to examine give leading Bitcoin mining companies that are worth investing in right now. All of these companies showed strong growth in 2023 and have made moves that will help them expand their operations in the coming months.
1. Riot Platforms – The best Bitcoin mining stock overall
Riot Platforms (RIOT), formerly Riot Blockchain, is one of the largest Bitcoin mining companies in the United States, with a fleet of over 100,000 ASIC miners. The company has a strong track record of profitability and has been expanding its operations rapidly. Riot is well-positioned to benefit from the upcoming Bitcoin halving, which is expected to reduce the supply of new Bitcoins and increase demand for mining power.
The company recently secured over 66,500 MicroBT’s Whatsminer M66S models in a deal worth $291 million, which are expected to boost its overall hash rate capacity to 18 EH/s. Private wealth management firm Bernstein recently upgraded its price target for RIOT, predicting that the stock will hit $15.60. The broker’s analysts credited low cost of production, high liquidity, and unlevered balance sheet as the main reasons for their bullish forecast.
2. CleanSpark – A Bitcoin mining company focused on clean energy
CleanSpark (CLSK) is another US-based Bitcoin mining company that focuses on using renewable energy sources. The is committed to environmental sustainability. To this end, CleanSpark is expanding its operations to new jurisdictions, including Texas and Georgia, where it has access to abundant renewable energy resources at a relatively low cost.
In October, the company announced that it would be deploying 4.4 EH/s of additional computing power by adding the latest Antminer S21 models of crypto mining rigs. “Integrating the S21 into our mining operations is in line with our commitment to using the most efficient mining technology,” noted Zach Bradford, CEO of CleanSpark, in an official statement.
3. Marathon Digital – A leader in operational hash rate
Marathon Digital (MARA) is one of the most efficient Bitcoin mining companies in the world, with over 100,000 miners across nine mining farms with a fleet efficiency of 24.4 J/TH. The company’s focus on efficiency allows it to generate more BTC with less electricity, which gives it a competitive advantage. Marathon is also diversifying its operations by investing in other digital assets, such as Ethereum and Litecoin.
As of October 31, Marathon had 14,025 BTC (worth nearly $600 million at the current market rate) in its treasury, making it one of the biggest owners of Bitcoin. According to the company’s statement, it produced 10,999 BTC between January 1 and December 5, making it one of the most prominent public Bitcoin companies in North America.
4. TeraWulf – A smaller BTC mining company with strong upside potential
TeraWulf (WULF) is a vertically integrated Bitcoin mining company that owns and operates its own data centers, containing about 34,000 miners at the Lake Mariner facility in New York and about 16,000 miners at the Pennsylvania facility. This gives the company more control over its operations and allows it to optimize its efficiency. TeraWulf is also investing in renewable energy projects, which is slated to reduce its environmental impact even further – currently, the company’s zero-carbon energy share represents an impressive 91%.
TeraWulf increased its revenue in the third quarter of this year by over +22% to $19 million, up from $15.6 million in the second quarter. It recorded $10.7 million in gross profit, which was also a sizeable quarter-over-quarter increase. The company said that they would be adding 18,500 Antminer S19j XP miners for a total price of $75.4 million.
5. Hut 8 Mining – A Canadian Bitcoin miner expanding in electricity generation
Hut 8 Mining (HUT) is a Canadian Bitcoin mining company with a fleet of over 115,000 ASIC miners. The company is well-positioned to benefit from the upcoming halving, as it has a strong financial position and a high gross margin. Hut 8 is also expanding its operations into new jurisdictions, such as the United States and Germany.
Next year, Hut 8 is expected to acquire up to four Canadian power plants (powered by natural gas) with a total capacity of 310 megawatts (MW). In addition, the company plans to acquire a new mining site from Validus Power Corp as well. The news follows a merger with US Bitcoin Corp., which closed earlier in December. CEO Jaime Leverton said that these acquisitions are not only in line with the company’s “infrastructure-first strategy” and added that it “affords [Hut 8] very compelling flexibility ahead of the halving.”
The bottom line
The Bitcoin mining sector saw considerable growth in 2023, with many of the top players more than doubling in value during the year. Companies like Riot Platforms, CleanSpark, Marathon Digital, and others are positioned well to benefit from the increase in Bitcoin demand that’s set to follow the next halving.
If you want to engage in BTC mining but don’t want to spend excessive amounts of money on your own mining hardware, check the list of the best Bitcoin cloud mining platforms, which allow you to purchase hash rate remotely. For more information about BTC mining, check out how long it takes to mine 1 Bitcoin.
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