Bitcoin has gained 109% so far this year, reaching a new all-time high in October. Globally, the cryptocurrency sector is valued at around $2.6 trillion. Venture capitalists invested $5.5 billion in it in the first half of 2020 and another $17 billion in the first six months of this year. A lot of this money is going to fund mining operations.
TipRanks reveals three crypto mining companies to watch. According to the platform, they are Strong Buy tickers with strong upside potential.
Hut 8 Mining Corporation
Hut 8 Mining is one of North America’s pioneers in mining on a mass scale. It focuses on Bitcoin and Ethereum mining and offers investors easy access to the crypto market. The hash rate for BTC is 2.5E/H PH/s and 1,600 GH/s for ETH. To stay ahead of the competition, Hut 8 uses a combination of high-end ASIC and GPU mining equipment.
D.A. Davidson analyst Christopher Brendler expresses bullish sentiment:
We’re bullish on Bitcoin and the miners represent a super-attractive way to play this transformational technology as the BTC rally and China shutdown are driving huge near-term margins.
Riot Blockchain (RIOT)
Riot Blockchain is the biggest Bitcoin miner in the US. It focuses on improving hash rate and infrastructure capacity. At the moment, Riot consumes 73 megawatts of power in its mining operations. It has a hash rate of 2.2 exahash per second and an efficiency rating of 30.1 W/TH.
This company’s stock also gets a Buy rating from Brendler and four other analysts. The stock has a 71% one-year upside potential with shares selling for $27.22 and the average price target at $46.60.
Argo Blockchain (ARBK)
Argo Blockchain is a London-based crypto miner with facilities in Quebec and Texas. They operate 45 megawatts of top-grade Bitcoin mining servers in North America and boast a hash rate of 1075PH, ranking them among the top 0.7% of Bitcoin miners across the globe. Upon its listing on NASDAQ, they raised $112.5 million in gross proceeds.
Jefferies analyst Jonathan Petersen is bullish on Argo:
While most BTC miners are making efforts to increase renewable energy sources and be carbon-neutral, Argo has made it a central pillar of their business strategy. Earlier this year, Argo announced that they are the first BTC miner to be ‘climate positive.’ The build in Texas, while clearly chosen for its cheap power (~2c kWh), was also picked because of the abundant wind power in the area, which produces more power than the grid uses. We believe that sourcing 100% of power from renewable sources is essential to gain broad acceptance from investors.
