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Crypto Picks and Shovels: 3 Bitcoin Mining Stocks to Dig Into Now
CLSKCleanSpark(CLSK) Investor Place·2024-06-07 10:23

Industry Overview - The demand for crypto mining infrastructure is increasing as Bitcoin prices have risen to over 70,000,indicatingpotentialforsteadygrowthinthecryptomarkets[1]−CompaniesinvolvedinbuildingandoperatingspecializedcomputinghardwareforBitcoinminingarepositionedtobenefitfromthisgrowth[2]MarathonDigitalHoldings(MARA)−MarathonDigitalisoneofthelargestpubliclytradedBitcoinminingcompanies,utilizinghigh−performancecomputerstovalidatetransactionsandearnBitcoin[4]−InQ12024,Marathonproduced2,811bitcoins,generatingrevenuesof70,000, indicating potential for steady growth in the crypto markets [1] - Companies involved in building and operating specialized computing hardware for Bitcoin mining are positioned to benefit from this growth [2] Marathon Digital Holdings (MARA) - Marathon Digital is one of the largest publicly traded Bitcoin mining companies, utilizing high-performance computers to validate transactions and earn Bitcoin [4] - In Q1 2024, Marathon produced 2,811 bitcoins, generating revenues of 165.2 million and achieving a net income of 337.2million,withadjustedEBITDAof337.2 million, with adjusted EBITDA of 528.8 million, showing substantial growth year-over-year [5] - The company held 15,741 bitcoins valued at over 1billionattheendofMarch2024[6]−MarathonalsogenerateshostingrevenueandhasintroducednewproductslikeSlipstreamandMARAFWtodiversifyincomestreams[7][15]RiotBlockchain(RIOT)−RiotBlockchainisanothermajorplayerintheBitcoinminingsector,withsignificantminingoperationsandplanstoexpandcapacity[9]−Thecompanycurrentlyhas11.7EH/sofminingcapacityandaimstoreach31EH/sbytheendof2024,withalong−termgoalofover40EH/soncetheCorsicanaFacilityisfullyoperational[10]−InQ12024,Riotachievedtotalrevenuesof1 billion at the end of March 2024 [6] - Marathon also generates hosting revenue and has introduced new products like Slipstream and MARAFW to diversify income streams [7][15] Riot Blockchain (RIOT) - Riot Blockchain is another major player in the Bitcoin mining sector, with significant mining operations and plans to expand capacity [9] - The company currently has 11.7 EH/s of mining capacity and aims to reach 31 EH/s by the end of 2024, with a long-term goal of over 40 EH/s once the Corsicana Facility is fully operational [10] - In Q1 2024, Riot achieved total revenues of 79.3 million, with 74.6millioncomingfromBitcoinmining,reflectinga5774.6 million coming from Bitcoin mining, reflecting a 57% year-over-year growth [16] - Riot has proposed acquiring Bitfarms in a 950 million deal, which would create the largest publicly traded Bitcoin mining company [17] CleanSpark (CLSK) - CleanSpark operates sustainable data centers powered by low-carbon energy, positioning itself as a leading Bitcoin mining company [12] - The company expects to exceed a network hash rate of 20 EH/s in the first half of 2024 and plans to fund expansion through acquisitions and upgrades [13] - In Q1 2024, CleanSpark generated record revenue of 73.8million,a16573.8 million, a 165% increase year-over-year, and posted a net income of 25.9 million, reversing a loss from the previous year [18]