The stock markets are at or near record highs right now, buoyed by a strong investors sentiment, especially among retail investors. Stocks represent a strong return while interest rates and bond yields remain low. But for return-minded investors, stocks are not the only game in town.
The notoriously volatile Bitcoin has surged 109% this year, peaking above $65,000 earlier this month. Yet, some crypto watchers believe the digital coin will climb even higher.
The cryptocurrency sector is worth approximately $2.6 trillion, globally, and it’s finding fuel from venture capitalists, who poured $5.5 billion into it in the first half of last year only to come back and pump in another $17 billion in the first six months of 2021.
Against this backdrop, we’ve dipped into the TipRanks database to pull the details on three crypto miners, to find out what’s making them tick. The platform revealed that these are Strong Buy tickers, and, more importantly, all three offer considerable upside potential. Let’s take a closer look.
We'll start with Argo Blockchain. This crypto miner is based in London and operates 45 megawatts of top-tier bitcoin mining servers in North America, with facilities in Quebec and Texas. The company’s total hashrate of 1075PH puts it in the top 0.7% of bitcoin miners globally, giving Argo a leg up in solving new blockchain calculations and reaping the rewards.
Argo has been expanding, both physically and in the markets. Back in May, the company completed the acquisition of its Quebec datacenters – and boasts that their combined 20 megawatts of power is provided mainly by clean hydroelectric generation, part of the company’s commitment to building a greener bitcoin industry.
More recently, the company broke ground on a 125,000 square foot facility in Dickens County Texas, a facility that, by 2Q22, will be populated by 20,000 Bitmain Antminer S19J Pro machines. Argo announced the purchase of the machines this past September. The Texas facility is predicted to reach up to 200 megawatts capacity.
Next up is Hut 8 Mining, a Toronto-based company that was one of North America’s pioneers in large-scale crypto mining. Hut 8’s operations focus on both Bitcoin and Ethereum mining, and the company boasts that it offers investors a hassle-free mode of playing the crypto market. Rather than buy the coins directly, with the hassles of setting up digital wallets, wiring money across borders, and storing the bitcoins, investors can buy shares in a major crypto miner.
Hut 8 is a truly large mining op. The company has 209 megawatts of contracted power capacity behind its mining facilities, and high rates of crypto hash generation. For BTC, Hut 8 claims a hashrate of 2.5E/H PH/s, and for Ethereum a rate of 1,600 GH/s.
Hut 8 uses a combination of high-end ASIC and GPU mining equipment to keep up with the competition. The company’s two operating mining facilities are located in Alberta, the heart of Canada’s energy production industry, where Hut 8 can take advantage of abundant, nearby, natural gas resources. Industry leading power purchase agreements take advantage of cold winter temperatures and high winds, to generate cleaner energy.
Last on our list is Riot Blockchain, the largest bitcoin miner in the US. The company takes a ‘made in the USA’ approach, expanding large-scale operations in the US, with a focus on goosing the hash rate and infrastructure capacity. Riot has a hash rate of 2.2 exahash per second, an efficiency rating of 30.1 W/TH, and currently consumes 73 megawatts of power in its mining operations.
Riot’s main operations are based in the Coinmint facility in Massena, New York, where the company is able to take advantage of 88% zero-emission energy production sources Riot has 16,146 next-gen bitcoin mining ASICs deployed at the Coinmint facility.
To augment its mining capabilities, Riot in May of this year acquired Whinstone, US. The target company is the owner-operator of the largest bitcoin mining op in North America, based out of Rockdale, Texas. The site has 190,000 square feet in three buildings on a 100-acre site, with contracts in place for both a long-term lease and electric power supply.
The Whinstone site can tap into Texas’ cheap electricity, at just 2.5 cents per kWh, and has developed 300 megawatts of its 750 megawatt capacity. Riot’s acquisition of Whinstone cost the company 11.8 million common shares of RIOT and $80 million in cash. Source.