Bitcoin mining companies can help investors gain exposure to the cryptocurrency.
Source: Getty

Best Publicly-Traded Bitcoin Mining Companies for Investors

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Apr. 7 2021, Published 2:46 p.m. ET

With the rise of cryptocurrencies like Bitcoin and Ethereum, more investors want in on the action. As a result, many off-shoot markets have emerged, cryptocurrency mining companies being one of them. Buying stocks in publicly-traded bitcoin mining companies can be just as lucrative as purchasing actual bitcoin.

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With traditional commodities like gold, oil, and even water, investors can invest in the actual commodity. Or inventors can buy shares in companies involved in a particular commodity.

bitcoin mining
Source: flickr
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The same goes for bitcoin mining companies. Investors can buy actual bitcoin. However, doing so exposing them to bitcoin’s volatility and risk. Instead, investors can position themselves with mining companies that are able to generate steady profits. Investors can benefit from the bitcoin surge while keeping a relatively safe investment.

The following bitcoin mining companies might just be the answer to enter bitcoin investing.

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Riot Blockchain (RIOT)

Located in Castle Rock, Colo., Riot Blockchain’s mining operation is located in upstate New York. Riot Blockchain has increased its bitcoin mining hash rate capacity to 1.06 Exahash per second (EH/s).

For would-be investors, Riot Blockchain stock has a market capitalization of $4.8 billion. Its stock price surged from $1.49 in January 2020 to a staggering $54.10 per share as of April 6, 2021. Perhaps a telling sign of its abilities to keep up with Bitcoin's growing popularity.

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Marathon Digital Holdings Inc. (MARA)

Another bitcoin mining company worth looking into, Marathon Digital Holdings, has seen a similarly meteoric rise in its stock price during the past year. Trading at just $0.35 this time in 2020, it closed at $52.45 on April 6, 2021, with a market capitalization of $5.6 billion.

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Marathon is investing heavily in expanding its bitcoin mining sector. Future bitcoin price increases could boost the company’s profitability and support a continuing rise in its stock price.

HIVE Blockchain Technologies (HUBTF)

With a relatively smaller market capitalization than the previous two stocks mentioned at $1.8 billion, HIVE Blockchain Technologies might be poised to see growth like its competitors. Trading at just over $4 per share, it hasn't been determined what kind of growth is expected yet.

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Based in Vancouver, HIVE has mining operations in Canada, Iceland, and Sweden. The key for HIVE to be successful in 2021 is its ability to continue to post growing revenues. With its recent acquisition of a massive 50-megawatt data center, a higher bitcoin production capacity could be what the company needs to reach the heights of its competitors.

Investors might be onto something if they can buy HUBTF now and ride a potential wave.

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Hut 8 Mining Corp. (HUTMF)

Another bitcoin mining company that seems to be on the cusp is Hut 8 Mining Corp. With a market cap of $1.1 billion and a trading price of $7.50, investors can buy in early and cheap with promising upside.

According to Hut 8, it has one of the largest installed mining capacities and is one of the largest holders of self-mined bitcoin in the industry.

Despite its large capacity and stock of bitcoin, Hut 8 seems undervalued compared to other publicly-traded mining companies. 

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