Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

3 Crypto Mining Stocks to Watch for 2022

By Zacks Investment ResearchStock MarketsDec 31, 2021 07:02AM ET
www.investing.com/analysis/3-crypto-mining-stocks-to-watch-for-2022-200613238
3 Crypto Mining Stocks to Watch for 2022
By Zacks Investment Research   |  Dec 31, 2021 07:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
AMZN
-0.76%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NVDA
-1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NFLX
-2.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XP
+0.30%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The buzz around the cryptocurrency market is likely to continue in 2022 and beyond. Higher uptake of digital and contactless trading and payments via blockchain-backed cryptocurrencies in this coronavirus-hit world is expected to sustain the momentum in this particular market.

Per a Fortune Business Insights report, the said market is expected to reach $1.9 billion by 2028, seeing a CAGR of 11.1% from 2021 to 2028.

Solid adoption of bitcoin, the most popular and widely used digital currency despite being highly volatile, has been acting as a key catalyst for the crypto miners so far.

The bitcoin space has been on a roller coaster ride throughout 2021. Currently trading at $46,904.30, the bitcoin hit an all-time high of $68,990.90 on Nov 8 from a low of $27,882.79 on Jan 4 and again dropping to $45,588.83 on Dec 20, per coindesk.com data.

This topsy-turvy situation is expected to remain due to the ongoing regulatory concerns over crypto transactions and crypto mining that witness greater governmental control over the cryptocurrency market.

Nevertheless, the great hedging opportunities that bitcoins offer to investors against inflation are expected to continue bolstering the bitcoin adoption rate as well as driving growth in the cryptocurrency market.

The blockchain technology based on which the entire cryptocurrency market stands minimizes the risks of monetary losses, double counting and hacking as it leverages a distributed consensus that makes tampering with the records very difficult.

In addition, the growing momentum across other digital currencies like litecoin, ethereum and zcash, will likely continue to boost prospects of the crypto miners further.

Cryptocurrencies, which hold the potential to revolutionize the process of peer-to-peer and remittance transactions, are gaining strongly from the decentralized system, low fees, transparency of distributed ledger technology, protection from consumer chargebacks and quick international transfers.

Given this upbeat scenario, many companies worldwide are now adopting the idea of cryptocurrencies as payment options and increasing their bitcoin holdings. This remains another tailwind.

All these factors bode well for the crypto mining companies that are making concerted efforts to capitalize on the pool of opportunities present in the cryptocurrency market.

Per a Data Bridge Market Research report, the global crypto mining market is likely to witness a CAGR of 11.5% between 2021 and 2028.

Stocks to Watch

Against this backdrop, here we focus on three crypto mining stocks with strong fundamentals that poise them well to capitalize on the cryptocurrency boom in the near term.

The following stocks have gained strongly in the year-to-date time frame, outperforming the S&P 500 Index’s rally.

Year-to-Date Price Performance

Zacks Investment Research
Zacks Investment Research
Image Source: Zacks Investment Research


NVIDIA’s NVDA shares have returned 129.8% on a year-to-date basis. NVDA is strongly gaining from the growing momentum of its GPUs in the cryptocurrency space, which is also providing it with a competitive edge against other chipmakers.

NVDA remains well-poised to capitalize on strong demand for cryptocurrency mining on the back of its notable launch of Cryptocurrency Mining Processor (CMP), which is ideal for professional mining. These processors are well-equipped to boost the mining power efficiency as these feature a lower peak core voltage and frequency.

In third-quarter fiscal 2022, this currently Zacks Rank #2 (Buy) player generated revenues worth $105 million from the inclusion of Cryptocurrency Mining Processors in its market platform.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Marathon Digital HoldingsMARA shares have gained 224.8% on a year-to-date basis. MARA is one of the largest enterprise bitcoin self-mining companies in North America. It is benefiting from the increasing deployment of miners, growing production of bitcoins, robust bitcoin holdings and a hike in its hash rate.

The currently Zacks Rank #3 (Hold) player produced 1,252 self-mined bitcoins in the recently reported third-quarter 2021, up 91% from the previous quarter’s output. Further, its number of miners deployed reached the 25,272 mark at the end of the same quarter. Marathon Digital held 7,035 bitcoins as of Sep 30, 2021.

This apart, the purchase of 30,000 S19j Pro miners from BITMAIN remains a major step toward expanding the bitcoin production. Further, Marathon Digital recently signed a contract with BITMAIN to buy ANTMINER S19 XP (NASDAQ:XP) (140 TH/s) bitcoin miners, which are expected to be shipped between July 2022 and December 2022. This is a major positive as well.

Hut 8 Mining’s HUT shares have gained 78.3% on a year-to-date basis. HUT is counted among the digital asset mining pioneers. The same is gaining from the solid momentum across its self-mining operations and expanding hosting services. Further, HUT’s increasing bitcoin holdings and prospects around its purchase of NVIDIA GPUs are noteworthy.

The presently Zacks Rank #3 player’s bitcoin holdings exceeded the 5,000 mark in third-quarter 2021. Further, HUT’s bitcoin balance stood at 5,053 as of Nov 10, 2021.

Additionally, Hut 8 Mining received the entire fleet of high-performance NVIDIA GPUs, which got deployed at its Medicine Hat site. HUT strives to mine the Ethereum network via Luxor pool with the help of these servers. Moreover, the move is likely to boost its aggregate operating rate by approximately 1,600 Gigahash. This apart, Hut’s building of the third mining site in North Bay, Ontario, remains noteworthy.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix (NASDAQ:NFLX) did to Blockbuster and Amazon (NASDAQ:AMZN) did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NVIDIA Corporation (NASDAQ:NVDA): Free Stock Analysis Report

Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report

Hut 8 Mining Corp. (HUT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
3 Crypto Mining Stocks to Watch for 2022
 

Related Articles

3 Crypto Mining Stocks to Watch for 2022

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email