The Best Bitcoin Mining Stocks for 2022

If you’d like to stake a claim in the world of crypto during this bear market — but don’t want to learn how to use a crypto exchange, manage cold wallet storage or otherwise worry about your investment — Bitcoin mining stocks could be the answer.

Investing in publicly held companies that mine Bitcoin offer exposure into the world of crypto without many of the risks related to holding crypto, which is a deregulated, decentralized asset.

On the other hand, Bitcoin mining stocks are regulated by the Securities and Exchange Commission, traded easily on public exchanges through brokers or investment apps, and work just like any other stock.

Are Bitcoin Mining Stocks a Good Investment?

Right now, the best Bitcoin mining stocks are down from their highs of last year. That means it’s important to evaluate the company’s fundamentals and do your best to determine the true value of the mining company before investing. When the crypto winter ends, these companies will be well-poised to profit as the value of the assets they are mining rise.

Canaan

Canaan is rated as one of the best performing crypto mining stocks in recent months, showing the fewest losses during the crypto winter. A strong quarterly earnings report in the second quarter of 2022, coupled with it expertise in ASIC chips and the fact that its Bitcoin mining technology was one of the first to market gives it an advantage.

Bitfarms Ltd.

Bitfarms Ltd., founded in 2017 now has 50,000 miners in its operation with 9 farms across 4 countries. The company’s farms run on low-cost, hydro-electric energy — an advantage in an industry that’s been criticized for its lack of sustainability. Its proprietary software and innovative management team promises global expansion for the company, which could make it one of the best Bitcoin mining stocks to invest in today. Bitfarms also ranked as one of the best performing mining stocks, with the smallest declines in 2022.

Riot Blockchain

Riot Blockchain stock is currently on the rise, following a report on the quantity of Bitcoin mined in August, which was down 15% from this time last year, but up from July 2022. With great potential in front of it, several analysts consider Riot undervalued right now.

HIVE Blockchain Technologies

Like Bitfarms Ltd., HIVE Blockchain Technologies uses green energy to mine Bitcoin and Ethereum. The company was the first publicly traded crypto mining company. According to Zacks data, HIVE may be significantly undervalued right now. Analysts expect returns within the next few months.

Hut 8 Mining Corp.

Analysts look favorably upon Hut 8 Mining Corp., with 4 analysts giving it a “buy” rating and one giving it a “hold,” according to CNN. The stock is currently trading at $2.09 and investors are giving it a median target of $4.75, with a high estimate of $5.00 and a low estimate of $3.89. 

Hut 8 Mining stands out as one of the world’s largest crypto mining companies. The company shows outstanding ESG Performance compared to its peers, and showed strong quarterly revenue of $53.3 million in the first quarter of 2022, according to a company press release.

Stronghold

Stronghold has been identified by Bitcoinist.com as being one of the most undervalued Bitcoin stocks, which would make it a tremendous deal at its current price of $1.46.

As more mining companies aim to make Bitcoin mining more eco-friendly, Stronghold is taking an innovative approach by powering its operations through reclaimed coal refuse across Pennsylvania.

Core Scientific

The largest Bitcoin mining company in the world, Core Scientific is currently focused on growth.

It sold most of its Bitcoin holdings in June 2022 to pay down debt and add to their arsenal of mining machines. The Austin, Texas-based company also entered into a $100 million common stock purchase agreement with B. Riley Principal Capital II. This will further increase the company’s liquidity as it continues to streamline operations.

As a result, seven out of seven analysts polled by CNN are calling the stock a “buy now.”

Marathon Digital Holdings

Besides Core Scientific, Marathon Digital Holdings is one of the largest Bitcoin mining operations in the U.S. Marathon has a mining facility co-located with Beowulf Energy in Hardin, Montana, enabling Marathon to retain 100% of its mined Bitcoin. The location gives Marathon extensive expansion capabilities. Unlike many of the stocks on this list, Marathon is not undervalued. However, experts say this can give the stock more long-term stability in its price.

Final Take

Investing in Bitcoin mining companies can be as easy as speaking to a financial advisor, or using a stock trading platform such as TD Ameritrade, Fidelity or Robinhood. If you want to gain exposure into Bitcoin while the crypto winter is still driving prices down, investing in mining companies can be a simpler way to do so.

Information is accurate as of Sept. 8, 2022.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.