In the world of crypto investing Bitcoin (BTC USD) is the top dog and has remained so since its inception 13 years ago. However, crypto mining stocks have also become popular among digital currency investors, particularly those associated with Bitcoin “mining”.
Bitcoin mining is often viewed as an opaque subject that is difficult to understand. In many ways it is. By solving various complex cryptographic puzzles, miners get the opportunity to mint a block and the rewards that come with it.
This mining activity requires an enormous amount of computing power and is becoming increasingly centralized. In the good old days (about a decade ago), most mining was done by individuals in their basements. Today they are huge computing farms owned and operated by a few companies.
Therefore, scaling has become important. And these companies have found ways to increase their hash rate over time in the most profitable way. Accordingly, these stocks are often looked at by crypto mining investors.
However, with the market in turmoil (driven by falling bitcoin prices), there is certainly risk in this area. Investors looking at these stocks should consider this risk before investing.
With that in mind, here are three crypto mining stocks trading at an impressive discount that aggressive growth investors might want to consider.
| ticker | company | Current price |
| REVOLT | Riot Blockchain | $6.56 |
| BEEHIVE | HIVE blockchain | $4.67 |
| MARA | Marathon digital | $10.91 |
Riot Blockchain (RIOT)
One of the largest bitcoin miners in the US, Riot Blockchain (NASDAQ:REVOLT) is often the first choice for investors for this reason. So far, the US has been one of the more stable places for crypto miners to base themselves. In this regard, Riot has the upper hand over its competition to a certain extent.
Riot Blockchain specializes in Bitcoin mining operations in North America. The company consists of three main segments – data center hosting, electronic products and engineering, and bitcoin mining.
In June of this year, Riot generated 421 BTC — an approximate increase of 73%. As of June 30, 2022, Riot held approximately 6,654 BTC, and all were formed through its own mining operations. Also, in June, Riot sold 300 BTC, raising approximately $6.2 million in net proceeds.
By January 2023, Riot expects 12.5 EH/s as total self-mining hash rate capacity – assuming a full deployment of around 115,450 Antminer ASICs.
As Riot moves closer to its next earnings release, Wall Street is hoping for strength from the company. Zack’s consensus estimate is for quarterly revenue of $82.95 million. This is 141.48% more than in the same period last year.
Hive blockchain (HIVE)
Hive blockchain (NASDAQ:BEEHIVE) is another top bitcoin miner. In addition to Bitcoin, however, Hive also mint ether (ETC USD) and Ethereum classic (ETC USD).
Accordingly, from a diversification perspective, there’s a reason many investors like Hive compared to its peers.
Additionally, Hive has had some very strong results lately. The company’s most recent annual results showed revenue growth of more than 212%. A record net income of nearly $80 million closed the year, showing year-over-year growth of 43%.
Well, a lot of these gains have to do with the volatile but higher crypto prices that prevailed until late last year. Accordingly, Hive’s forward numbers are expected to not be as good.
However, Hive’s impressive capacity is something crypto bulls have pointed to as a reason to own this stock. The company has increased its capacity to around 6,100 GH/s ETH mining and a massive 2 Exahash hashrate in March 2022. For reference, it was around 2,700 GH/s Ethereum mining and 310 PH/s BTC mining Q1 2021. That is 225% growth in Ethereum mining hashrate and 545% growth in Bitcoin mining hashrate YoY.
Marathon Digital (MARA)
Finally we have Marathon digital (NASDAQ:MARA). Marathon Digital is a giant digital asset company focused on blockchain development, digital asset creation, and of course, crypto mining.
In early March, the company announced the production of more than 360 Bitcoin in a single month. This corresponds to an annual growth rate of 729%. Not too shabby at all.
Like its competitors, Marathon has invested heavily in its mining infrastructure. This allowed Marathon to increase its total bitcoin holdings to almost 9,000 tokens. At today’s prices, that’s worth almost $200 million.
With a market cap of about $1.2 billion, Marathon now trades about 6 times the assets on its balance sheet. Notably, these digital assets are volatile (hence the newly discovered MARA stock discount). However, should another bull market loom, this valuation could prove very attractive with hindsight.
At the time of publication, Chris MacDonald held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
Chris MacDonald’s love of investing led him to earn an MBA in finance and has held a number of senior positions in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst coupled with his eagerness to find undervalued growth opportunities contribute to his conservative, long-term investment perspective.
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