- Speculations around the possibilities of Amazon Inc (NASDAQ:AMZN, AMZN:US) joining the cryptocurrency space has seen some crypto stocks leap.
- Bitcoin surpassed the US$ 40,000-mark for a brief period on July 26.
- Meanwhile, stocks of Bitcoin miner Bit Digital Inc. (NASDAQ:BTBT, BTBT:US) soared by about 110 per cent.
Speculations around the possibilities of Amazon Inc (NASDAQ:AMZN, AMZN:US) joining the cryptocurrency space has seen some crypto stocks leap.
Following reports that the ecommerce giant may be looking into expanding its payment operations by starting to accept payments in crypto, Bitcoin’s price surged.
After falling below US$ 30,000 earlier in July, Bitcoin surpassed the US$ 40,000-mark for a brief period on July 26.
In the wake of this development, let us look at some crypto mining stocks that interested investors can explore.
Bit Digital Inc. (NASDAQ:BTBT, BTBT:US)
Stocks of Bitcoin miner Bit Digital Inc. (NASDAQ:BTBT, BTBT:US) soared by about 110 per cent on July 26.
After surging by 364 per cent in the past year, Bit Digital stock declined by 46 per cent in the last six months. However, it seems like BTBT stock has regained its lost momentum as it returned about 106 per cent to its shareholders in the past week.
The scrips were trading at US$ 8.87 apiece on July 26, 361.8 per cent higher than the 52-week low of US$ 1.91 (July 27, 2020).
On the financial front, Bit Digital posted a net income of US$ 35.8 million in the first quarter of 2021, as compared to a net loss of US$ 120,061 in Q1 2020.
Bit Digital's revenue from Bitcoin mining was US$ 43.95 million in Q1 2021. The value of its total assets doubled to US$ 78.1 million as on March 31, 2021, up from that of US$ 39.89 million by December 31, 2020.
Another factor behind the surge in BTBT’s share value on July 26 could be the company announcement that it has partnered with blockchain tech firm Digihost Technology Inc. (TSXV:DGHI) for a mining operation.
Under the partnership, the hashrate is expected to increase by 2 EH (exahashes) between the two companies. Hashrate is essential in this aspect as it is directly proportional to the security and resistance of attack on the cryptocurrency.
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Hive Blockchain Technologies Ltd. (TSXV:HIVE)
The first publicly listed crypto miner in Canada, Hive Blockchain Technologies is committed to its environmental, social and corporate governance (ESG). The blockchain technology company mines Bitcoin and Ether using 100 per cent green energy.
HIVE stock expanded by 731 per cent in the past year and surged by about 34 per cent year-to-date (YTD). On July 12, the Vancouver-based company bought 3,019 Bitcoin miners, and they are expected to increase the company's Bitcoin operating hashrate by 46 per cent.
Hive, which claims to operate in politically stable regions, has business operations in Canada, Iceland and Sweden. In June 2021, the crypto mining company expanded its network in Sweden and started a 4.6 MW facility, increasing its capacity to 133 MW worldwide and 33 MW in Sweden.
In addition, the company listed its common shares on the Nasdaq Stock Market on July 1, where they trade under the ticker of ‘HVBT’.
The company has access to low-cost green energy, which reportedly enables it to sell its mined coins strategically and maximize its profits.In the third quarter ending December 31, 2020, Hive Blockchain achieved a net income of US$ 17.2 million against US$ 3.4 million in Q3 2019.
On July 26, HIVE shares were trading at C$ 3.2 per share at market close.
Hut 8 Mining Corp. (TSX:HUT)
One of the most prominent digital asset miners in North America, Hut 8 has an operating capacity of 109 MW and holds 94 blockboxes, which is said to one of the world's most powerful Bitcoin mining devices. By the end of this year, Hut 8 expects to increase its hashrate to 2.5-3 EH.
As of June 27, the company had 3,806 Bitcoins on its balance sheet. This number is estimated to jump to 5,000 Bitcoin by the end of 2021.
The Toronto-based company is developing a 100 MW facility in partnership with Validus Power. By the end of Q4 2021, Hut 8 plans to purchase 12,000 MicroBT miners for deployment.
For the period ending on March 31, 2021, Hut 8's revenues from digital assets were C$ 30.6 million, as compared to C$ 12.7 million in Q1 2020.
In the same period, the crypto miner's net income was C$ 35.5 million, as against its recorded loss of C$ 10.2 million in the first quarter of 2020.As China continues its crackdown on cryptocurrency miners, some market experts expect crypto mining to register a boom in North American countries. If that happens, companies like Bit Digital, Hut 8 and Hive could benefit.