Cryptocurrency has increased its presence due to its brilliant achievements since last year. Being accepted as an alternative investment asset could boost the continued growth of the crypto mining industry. Cryptocurrency miners are most exposed to the movement of the digital currencies they mine because mining is the main source of income and most companies tend to hold the mined coins on their balance sheets. Here we will discuss crypto mining stocks.
What is crypto mining?
Many people think crypto mining is simply a way to make new coins. However, crypto mining also involves validating cryptocurrency transactions on the blockchain network and adding them to the distributed ledger. Most importantly, crypto mining prevents double consumption of digital currencies on the decentralized network.
As with physical currencies, when one member uses a cryptocurrency, it is necessary to renew the digital ledger by debiting from one account and depositing it into the other account. However, the challenge with digital currencies is that the digital platform is easily manipulated. Therefore, Bitcoin’s distributed ledger allows only authorized miners to update transactions in the digital ledger. It leaves the miners with the extra responsibility of protecting the network from double-spending.
The huge potential of digital currency companies
The first idea of blockchain technology, a digital ledger that automatically tracks transactions between parties and confirms ownership of crypto assets, was to build an efficient and secure borderless, peer-to-peer electronic cash settlement system.
Investors can invest in cryptocurrencies by buying a small amount of several cryptocurrencies. However, a better way to gain exposure to this sector is to invest in companies that benefit from the spread of Blockchain and Crypto assets, even larger and more established companies. The amount of revenue these crypto service providers have gained from blockchain technology has grown exponentially over the last few years.
Leading Bitcoin and crypto mining brand
Here we are leading to introduce you to some most promising crypto mining brands you can invest in today.
Best crypto mining stocks in the world
Headquartered in Toronto, Canada, HUT is an industrial-scale bitcoin mining company. The company uses dedicated equipment to solve the computational problems for verifying transactions on the Bitcoin blockchain and provides hosting services for institutional investors.
On October 21, HUT announced that it had purchased 12,000 new MicroBT M30S+ and M30S++ minors from Inchigle Technology Hong Kong Ltd.
The Colorado-based Lion Blockchain focuses on building, supporting, and operating blockchain technology and mining digital currencies. The company has invested in many blockchain startups, including Canadian bitcoin exchange Coinsquare and operates crypto mining in Oklahoma City.
BIT Mining is a crypto mining firm established in Hong Kong. The business includes cryptocurrency mining, data centers, and mining pools. The firm also holds the blockchain browser. In mid-November 2021, BIT Mining announced its financial results for the third quarter of the fiscal year 2021 (FY) (Q3) (three months until September 30, 2021). The company’s net loss rose to $41.7 million from $6.3 million in the same period last year.
Advanced Micro Devices is a California computer processor company whose GPU products focus primarily on the gaming industry. However, some of the company’s GPUs can also be used to increase the efficiency of the Bitcoin mining rig, which is beneficial for the company as the Bitcoin mining boom has pushed the company’s sales to a large amount.
The company has been successful in the bitcoin mining scene and now manufactures hardware solutions specifically for digital currency miners.
Founded in 1993, Nvidia is considered the global leader in computer graphics cards. Nvidia is best known for its GPU gaming processors, but it has a family of GPU cards designed to mine specific cryptocurrencies.
Although cryptocurrency cards have contributed significantly to Nvidia’s profits. Gaming processors are still the most important part of the company’s business.
Canaan is a China-established delivery of high-performance computing justifications. The company focuses on designing an application-specific integrated circuit (ASIC) high-performance computing chips. Chip research and development, production of computing equipment, and software services.
The miners have a cost leadership and production scale and offer better investment opportunities than the highly volatile Bitcoin. According to investment bank Kowen, bitcoin miners are “attractive investment alternatives” in comparison to other forms of direct and indirect exposure to the largest cryptocurrency. Above miners (best crypto mining stocks) in the world are hoping to increase their market share of the hash rate of the Bitcoin network from the current 13% to about 36% by the end of the year. With the price of Bitcoin exceeding $50,000, investors are apt to forget the cost each miner is paying to generate profits. Potential shareholders must also pay close attention to this indicator, as the most efficient miners have greater profits per bitcoin. Mining companies use the average cost per bitcoin mined as a point of comparison.