Crypto Picks and Shovels: 3 Bitcoin Mining Stocks to Dig Into Now

  • Explore three Bitcoin mining stocks with operations leverage to thrive as demand for crypto infrastructure climbs.
  • Marathon Digital Holdings (MARA): MARA is aggressively expanding mining capacity to capitalize on crypto growth.
  • Riot Blockchain (RIOT): RIOT has major hash rate expansion plans underway and is growing via acquisitions.
  • CleanSpark (CLSK). CLSK delivers tremendous top and bottom-line growth as it scales capacity.
Bitcoin Mining Stocks - Crypto Picks and Shovels: 3 Bitcoin Mining Stocks to Dig Into Now

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Bitcoin mining stocks look positioned to thrive as demand for crypto mining infrastructure grows. The price of Bitcoin (BTC-USD) has been rising to over $70,000 in recent months after clawing its way back to the top from a significant fall in 2022. Therefore, the crypto markets appear ripe for steady, sustainable growth going forward. This bodes well for the shovels and picks of the crypto gold rush. These are the companies building and operating the specialized computing hardware and facilities needed to mine Bitcoin.

Savvy investors should research mining stocks with exposure to this high-upside secular growth theme. Companies with specialized rigs or turnkey hosting services will capture value as crypto mining infrastructure demand scales. The picks and shovels of the 21st-century gold rush offer promising exposure to crypto adoption with the operations leverage to drive strong profitability.

Marathon Digital Holdings (MARA)

In this photo illustration, the Marathon Digital Holdings (MARA) logo seen displayed on a smartphone screen
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As one of the largest publicly traded Bitcoin mining stocks, Marathon Digital Holdings (NASDAQ:MARA) utilizes high-performance computers to validate transactions on the Bitcoin network and earn newly created Bitcoin as a reward. Therefore, this core business of mining Bitcoin gives Marathon Digital multiple ways to generate income.

In the first quarter of 2024, Marathon Digital produced 2,811 bitcoins and generated revenues of $165.2 million. With Bitcoin prices rising to $71,289 during the quarter, the company was able to achieve net income of $337.2 million. Additionally, adjusted EBITDA came in at $528.8 million. Therefore, this represented substantial growth over the prior year.

Additionally, Marathon Digital also held 15,741 Bitcoin on its balance sheet at the end of March 2024. This equates to a value of over $1 billion at current prices.

Plus, beyond Bitcoin mining rewards, Marathon Digital generates hosting revenue by providing data center space for other miners’ equipment. Additionally, the company introduced new products in 2024 like Slipstream, custom mining firmware called MARAFW and an immersion cooling system to drive further innovation and diversify income streams in the Bitcoin ecosystem.

With hash rate expected to double to 50 exahashes per second in 2024, Marathon Digital is aggressively expanding. Its recent data center acquisitions have boosted mining capacity to over 1 gigawatt. Therefore, as a sector leader in Bitcoin growth, Marathon Digital remains one of the top Bitcoin mining stocks.

Riot Blockchain (RIOT)

In this photo illustration, the Riot Platforms (RIOT) logo is displayed on a smartphone screen.
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As another one of the largest publicly traded Bitcoin mining stocks, Riot Blockchain (NASDAQ:RIOT) stands out as a top pick for investors looking to capitalize on the growth of cryptocurrencies. With its sizable mining operations and moves to expand capacity, Riot generates strong Bitcoin mining revenue.

In Q1 of 2024, Riot achieved total revenues of $79.3 million. Interestingly, most of it came from its Bitcoin Mining segment, accounting for $74.6 million in revenue for the quarter. For example, Riot’s Bitcoin Mining revenue was only $48 million in Q1 of 2023. Therefore, this 57% year-over-year growth demonstrates Riot’s rapid expansion of its mining operations.

Riot also continues to invest in growing its self-mining hash rate capacity. For example, the company has 11.7 exahashes per second (EH/s) of mining capacity deployed at the moment. But with its new 400-megawatt Corsicana Facility coming online, Riot’s goal is to reach 31 EH/s by the end of 2024. Plus, once the Corsicana Facility is fully constructed out to 1 gigawatt, Riot expects over 40 EH/s of capacity.

Furthermore, Riot recently proposed acquiring rival Bitcoin miner Bitfarms (NASDAQ:BITF) in a $950 million deal. If it goes through, this acquisition would create the largest publicly traded Bitcoin mining company globally.

Cleanspark (CLSK)

In this photo illustration, the CleanSpark (CLSK) logo seen displayed on a smartphone screen
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As one of America’s leading Bitcoin mining stocks, CleanSpark (NASDAQ:CLSK) represents an attractive way to invest in the growth of Bitcoin. CleanSpark operates sustainable data centers powered primarily by low-carbon energy to mine Bitcoin. Thus, with Bitcoin continuing to gain mainstream adoption as a store of value, CleanSpark is poised to benefit.

In the first quarter of fiscal 2024, CleanSpark generated record revenue of $73.8 million, a 165% increase year-over-year. It also posted net income of $25.9 million compared to a $29 million loss in the prior year period. CleanSpark’s adjusted EBITDA reversed from a $2 million loss to reach $69.1 million. As of December 31, 2023, the company held $127 million in Bitcoin on its balance sheet.

The company expects to achieve a network hash rate exceeding 20 exahashes per second in the first half of 2024. Further, CleanSpark plans to fund its rapid expansion through acquisitions, smart facility growth, and continually upgrading to better mining equipment. With Bitcoin continuing to gain credibility among institutions, CleanSpark offers retail investors exposure to this emerging digital asset through the publicly traded equity markets. Thus, as one of America’s leading Bitcoin mining companies delivering tremendous growth in revenue and profitability, CleanSpark stands out as one of the best Bitcoin mining stocks to buy now.

On the date of publication, Andrea van Schalkwyk did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Andrea van Schalkwyk is a value investor who adheres to the principles of the renowned Warren Buffett and his mentor Benjamin Graham. He holds a Master of Engineering (MEng) from the University of Padua and an Executive MBA from the CUOA Business School.


Article printed from InvestorPlace Media, https://investorplace.com/2024/06/crypto-picks-and-shovels-3-bitcoin-mining-stocks-to-dig-into-now/.

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