- Riot Blockchain (RIOT): One of the biggest crypto miners with nearly 5,000 Bitcoins on its balance sheet.
- Marathon Digital Holdings (MARA): With $350 million worth of Bitcoin holdings, this is one of the biggest crypto miners in the world.
- Bit Digital (BTBT): A less established player but an up and comer in the world of cryptocurrency mining.
Crypto mining stocks are interesting these days as the price of Bitcoin (BTC-USD) and other cryptocurrencies continues to be volatile.
After running up as high as $48,000 in mid-March, the price of Bitcoin fell below the key support level of $40,000 in mid-April as market volatility continues to roil stocks and cryptocurrencies. BTC slumped to $39,785.68 on April 11, before quickly recovering and moving back above the $40,000 demarcation. At the start of April, Bitcoin was actually positive for the year. However, things continue to change quickly for the entire cryptocurrency market.
Other digital tokens such as Ethereum (ETH-USD), Solana (SOL-USD) and Cardano (ADA-USD) continue to yo-yo up and down, sometimes by 10% or more in a single day. The volatility continues to play havoc with stocks of cryptocurrency miners, though some of the more established players manage to standout for their technology, maturity and success in amassing large holdings of Bitcoin and other digital assets.
As April’s market swings continue, we look at three cryptocurrency mining stocks for investors to consider buying.
|MARA||Marathon Digital Holdings||$21.23|
Crypto Mining Stocks to Buy for April 2022: Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ:RIOT) continues to be one of the biggest and best known cryptocurrency miners having amassed nearly 5,000 Bitcoin that are currently worth some $200 million.
The company, based in Castle Rock, Colorado, has grown exponentially in the past year. In 2021, Riot reported annualized revenue growth of 1,433%, coming in at $184.4 million compared to just $12 million in 2020. That growth hasn’t much helped RIOT stock, which has fallen 70% over the past 12 months. One key reason for the stock’s decline is the volatility in crypto prices. The other reason is that Riot Blockchain remains unprofitable, having reported a net loss of $7.9 million for all of last year.
However, management at Riot Blockchain continues to focus on growth at all costs and seems content to disregard the losses on the company’s balance sheet. Riot Blockchain increased its mining operations by more than 440% last year, and continues to add hundreds of Bitcoin to its balance sheet each and every quarter.
With its current operations running at or near capacity, Riot Blockchain has begun to look around at smaller cryptocurrency miners for potential acquisitions, planning to grow its operations and cryptocurrency assets through takeovers of potential competitors.
Marathon Digital Holdings (MARA)
Marathon Digital Holdings (NASDAQ:MARA) has Bitcoin holdings worth more than $350 million based on current prices, and greater even than Riot Blockchain’s hoard. The Las Vegas-based cryptocurrency miner managed to secure nearly 1,100 Bitcoin in the fourth quarter of 2021 alone, which was a 600% increase from the same period a year earlier.
Marathon Digital now owns nearly 9,000 Bitcoins or about 80% more than its main competitor, Riot Blockchain.
For all of last year, Marathon Digital earned $150.5 million in revenue, up 3,320% from $4.4 million a year earlier. Earnings per share in the fourth quarter of 2021 came in at 36 cents, a penny higher than analysts had expected.
Among crypto miners, Marathon Digital is one to own. However, despite all its success, Marathon Digital’s stock has also been volatile this year as prices for Bitcoin and other digital assets ebb and flow. Year to date, MARA stock is down 36%. In the last 12 months, the share price has come down 60%.
Crypto Mining Stocks to Buy for April 2022: Bit Digital (BTBT)
Shares of Bit Digital (NASDAQ:BTBT) have been harder hit than most cryptocurrency mining stocks over the past year. Over the last 12 months, BTBT stock has declined 82%, including a 54% decline so far this year. Bit Digital’s shares now trade deep in the penny stock tables.
However, much of the decline has stemmed from the fact that the miner previously had the bulk of its operations in mainland China and was forced to uproot and move after regulators in Beijing declared cryptocurrency mining illegal last year. This past March, Bit Digital announced that 40% of its miners, nearly 10,500 people, had relocated to North America.
Despite the upheaval, Bit Digital and its army of 27,000 miners has continued to produce. To date, Bit Digital says it has mined about 3,300 Bitcoins, currently worth $132 million. While less than both Riot Blockchain and Marathon Digital, that is still a substantial amount of mined Bitcoin.
And while the company’s earning have been uneven to date, they are improving. In its most recent quarter, Bit Digital reported revenues of $10.4 million. For its upcoming quarter, Wall Street is forecasting that Bit Digital’s revenue will more than double to $25 million. While a smaller, less established player, Bit Digital should be viewed as an up and comer in the crypto world.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.