Other digital tokens such as Ethereum (Solana (Cardano (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.
Marathon Digital Holdings
Crypto Mining Stocks to Buy for April 2022: Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ: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:
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:
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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.