The cryptocurrency industry is still young but growing rapidly. Cryptocurrencies are a relatively new form of digital currency, with Bitcoin being the most well-known example. Cryptocurrencies utilize blockchain technology, which makes possible the maintenance of a secure and decentralized record of transactions without the need for a trusted third party.
Cryptocurrency mining companies use computers to solve complex computational problems to validate transactions on a blockchain and generate new cryptocurrency coins. Cryptocurrency can then be held and used for certain transactions or be sold for fiat currency. Some of the big names in the crypto mining industry include Riot Blockchain Inc., Canada-based HIVE Blockchain Technologies Ltd., and Marathon Digital Holdings Inc.
Crypto mining stocks, as represented by an exchange-traded fund (ETF)—the Amplify Transformational Data Sharing ETF (BLOK)—have dramatically underperformed the broader market. BLOK has provided a total return of -44.2% over the past 12 months, well below the Russell 1000’s total return of -1.6%.
Below, we look at the top three crypto mining stocks with the best value, the fastest growth, and the best performance. The market performance numbers above and all statistics in the tables below are as of June 2, 2022.
These are the crypto mining stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales eventually could produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
|Best Value Crypto Mining Stocks|
|Price ($)||Market Capitalization (Market Cap) ($M)||12-Month Trailing P/S Ratio|
|Canaan Inc. (CAN)||3.75||701.0||1.9|
|HIVE Blockchain Technologies Ltd. (HIVE)||4.18||343.8||2.1|
|Bitfarms Ltd. (BITF)||1.96||398.1||10.9|
- Canaan Inc.: Canaan is a China-based technology company that provides high-performance computing solutions. It is focused on computing chip design, chip research and design, computing equipment production, and software services. The company supplies computing equipment to the crypto mining industry. Canaan announced in mid-March that its board of directors has approved a share repurchase program authorizing the company to repurchase up to $100 million worth of its American depositary shares (ADSs).
- HIVE Blockchain Technologies Ltd.: HIVE Blockchain Technologies is a Canada-based cryptocurrency mining company focused on linking the blockchain sector to traditional capital markets. It mines digital currencies such as Bitcoin and Ethereum at its data centers in Canada, Sweden, and Iceland.
- Bitfarms Ltd.: Bitfarms is a Canada-based cryptocurrency mining company. In addition to mining operations, it offers on-site technical repair, data analytics, and electrical engineering and installation services. The company announced in early March that it has acquired real estate in the Canadian province of Quebec, increasing its number of farms under development to four. The new facility is expected to have 18 megawatts of power capacity.
These are the top crypto mining stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Crypto Mining Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)||Revenue Growth (%)|
|Marathon Digital Holdings Inc. (MARA)||9.34||992.9||N/A (see company description)||465.0%|
|HIVE Blockchain Technologies Ltd. (HIVE)||4.18||343.8||220.0||265.9|
|Riot Blockchain Inc. (RIOT)||6.87||872.7||233.3||244.0|
- Marathon Digital Holdings Inc.: Marathon Digital Holdings is a digital asset technology company engaged in the mining of cryptocurrencies. Its primary focus is on the blockchain ecosystem and generating digital assets. The company announced in late March the appointment of Hugh Gallagher to chief financial officer (CFO). Gallagher most recently served as chief strategy officer at Global LPG. He replaces Sim Salzman, who was appointed the company's chief accounting officer. Because Marathon Digital reported negative EPS for the most recent quarter, an EPS growth rate could not be calculated for the table above.
- HIVE Blockchain Technologies: See above for company description.
- Riot Blockchain Inc.: Riot Blockchain is a Bitcoin mining and digital infrastructure company. The company has Bitcoin mining operations in Texas and New York. It also has electrical switchgear engineering and fabrication operations in Colorado. Riot Blockchain recently announced that Jeff McGonegal will retire from his position as CFO, effective August 15, 2022. He will transition to the role of senior advisor to the company. Colin Yee, head of corporate and financial Operations, was appointed McGonegal's successor as CFO.
These are the crypto mining stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
|Crypto Mining Stocks with the Best Performance|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Hut 8 Mining Corp. (HUT)||2.39||416.3||-43.7|
|Bitfarms Ltd. (BITF)||1.96||398.1||-56.8|
|Canaan Inc. (CAN)||3.75||701.0||-62.5|
|Amplify Transformational Data Sharing ETF (BLOK)||N/A||N/A||-44.2|
- Hut 8 Mining Corp.: Hut 8 Mining is a Canada-based company that's engaged in digital asset mining, high-performance compute hosting, and other related operations.
- Bitfarms Ltd.: See above for company description.
- Canaan Inc.: See above for company description.
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YCharts. “Financial Data.”
Bitfarms Ltd. "Bitfarms Acquires Additional Location
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Marathon Digital Holdings Inc. "Company Appoints Hugh Gallagher to Chief Financial Officer as Sim Salzman Transitions to Chief Accounting Officer."
Marathon Digital Holdings Inc. "MARATHON DIGITAL HOLDINGS REPORTS FIRST QUARTER 2022 RESULTS."
Riot Blockchain Inc. "RIOT BLOCKCHAIN ANNOUNCES CFO TRANSITION PLAN."