Crypto Mining Stocks Worth Your Money in 2021

Cryptocurrency mining has proven to be both a lucrative business and investment as the worth of cryptocurrencies have continued to increase over time. The most popular cryptocurrency, Bitcoin quadrupled in price between January and late December 2020, dramatically moving from $8,000 to $31,000. The price of Bitcoin recently reached a new all-time high of $34,000. The upward movement of Bitcoin price and other cryptocurrencies has made cryptocurrency investment a top choice for investors in 2021.  

Cryptocurrencies are a new asset class and their valuations are tied to demand in the marketplace. Typically, a higher price of cryptocurrencies will translate into greater profit margins for Crypto mining companies. Investors can invest in cryptocurrencies by either directly purchasing the currencies or buying crypto mining stocks.

What is Crypto Mining?

In simple terms, crypto mining is a complicated process of mining digital currencies through the use of computers. It involves solving cryptographic equations. Sectogostore.com defines crypto mining as:

“… gaining cryptocurrencies by solving cryptographic equations through the use of computers. The process involves validating data blocks and adding transaction records to a public record (ledger) known as blockchain.”

The crypto mining business is complicated but lucrative. It can be highly risky but promising and profitable in the long run. Several industry research done on the Cryptocurrency mining market has shown that in the next five to six years, the global crypto mining market will reach approximately US$2584.6 million, from US$ 1015.9 million.

Top Crypto Mining Stocks in 2021

Riot Blockchain (NASDAQ: RIOT): Riot Blockchain is a leading cryptocurrency mining stock, with a market capitalization of more than $1 billion. Between January and late December 2020, its stock price increased to $16 per share, from $1.49. Riot Blockchain was found in 2000 and has its headquarters in Castle Rock, Colorado.

The company recently announced its plan to expand strategically with “an expected 65% increase in bitcoin mining hash rate capacity resulting from the purchase and future deployment of 15,000 s19 Pro and S19j Pro Antminers from Bitmain Technologies Limited.” This is good news for investors, as they can benefit from the future results of this expansion.  

Marathon Patent Group (NASDAQ: MARA)

Marathon Patent Group is a small-cap crypto mining company. Like other small-cap stocks, it has higher risks in general, compared to large-cap stocks, but potential for high returns. MARA has a market capitalization of less than $600 million. In 2020, its stock price grew to $14 per share from $1, between January and late December.

The Las Vegas-based crypto mining company is also investing heavily towards the expansion of its business. According to the company’s calculations “if all miners we have purchased were deployed today, and Bitcoin’s price was $28,000/BTC, we would produce approximately $618 million in revenue annually and approximately $523 million in gross profit annually.”

Canaan (NASDAQ: CAN)

Canaan is a China-based bitcoin mining hardware manufacturer. Cryptocurrency mining and the technologies required to mine are equally important. Investors will benefit more from cost-effective and efficient cryptocurrency mining businesses if more investment is channeled towards crypto hardware manufacturing companies. Canaan has more potentials of becoming profitable with notable investments. The company reported not-so-good results in its third quarter of 2020. However, by September 2020, it announced a $10 million share repurchase program through 2021.

HIVE Blockchain Technologies (OTC: HVBTF)

HIVE Blockchain Technologies is a Canada-based cryptocurrency mining company with operations in Sweden and Iceland. This small-cap stock has successfully shown a positive trend in the last three consecutive years. Also, its operating income for the trailing 12 months is positive, which makes its stock appealing to investors. The company’s recent acquisition will also allow it to double its Bitcoin mining capacity.