Chinese regulators’ crackdown on crypto mining has pushed the United States to the fore as the leading destination for crypto miners. Investors’ interest in the crypto mining market is evidenced by the first bitcoin futures ETF’s handsome returns in its trading debut. Considering the industry’s immense growth prospects, Wall Street analysts have rated Marathon Digital (MARA), Riot Blockchain (NASDAQ:RIOT), and Hut 8 Mining (HUT) as ‘Strong Buy.’ So, let’s take a closer look at these names.The cryptocurrency economy is growing at an impressive rate. China has been the market leader in crypto mining, but Beijing’s crackdown on cryptocurrency made crypto mining off-limits for investors. “The whole narrative of China controls bitcoin is now completely destroyed,” asserted Boaz Sobrado, a London-based fintech data analyst. This has made the United States the prime destination for bitcoin miners. According to the Cambridge Centre for Alternative Finance, U.S. bitcoin’s hash rate has increased 428% since September 2020. Hash rate is an industry term used to describe the collective computing power of miners.
The global cryptocurrency mining market is expected to grow at a 16.1% CAGR to $1.61 billion by 2025. And the newly debuted ProShares Bitcoin Strategy ETF (BITO) jumped 4.8% and traded $984 million in volume in its first trading session on Tuesday.
Given this backdrop, Wall Street analysts expect crypto mining stocks of Marathon Digital Holdings, Inc. (MARA), Riot Blockchain, Inc. (RIOT), and Hut 8 Mining Corp. (HUT) to gain considerably in the near term. The analysts have rated these stocks ‘Strong Buy.’