As the rate of bitcoin shoots past brand-new highs since the start of the year, the possibility of so-called bitcoin mining ends up being a growing number of appealing. Not remarkably, companies that offer bitcoin mining-related hardware, such as high-power graphics cards, are profiting from the bitcoin mining boom. Fortunately for investors, a few of these business are publicly traded on the stock market.
What Is Bitcoin Mining?
Mining bitcoin refers to the generation of new bitcoin by bitcoin network participants who use their computational power to validate and process transactions on the bitcoin blockchain. By guaranteeing that the network is running efficiently and all correct transactions are being processed, bitcoin miners are economically rewarded with fresh bitcoin.
Currently, the bitcoin block benefit is 12.5, which suggests that miners receive 12.5 bitcoins for every single brand-new block mined on the blockchain. A brand-new block is developed roughly every 10 minutes, consists of several confirmed deals, and will have had several miners associated with the procedure. Thus, the 12.5 brand-new bitcoins will be split among the miners involved in the creation of the block. That suggests miners are in competition with each other to validate more and more deals to get a larger piece of the bitcoin mining rewards.
For that reason, there is rather of a hardware arms race among bitcoin mining operations as they constantly try to increase the speed and efficiency of their mining rigs. One way of doing that is by buying the newest and most effective graphics cards that can be used to increase mining effectiveness.
Top Bitcoin and Crypto Mining Stocks
There are a number of publicly-traded business that are involved in crypto mining, either through the production of mining graphics cards or by running mining farms. Below, you will discover a list of the most prominent ones.
AMD Micro Gadget (NASDAQ: AMD)Advanced Micro Gadgets Inc. is a California-based company that develops computer system processors and mostly focuses its GPU items on the video gaming neighborhood. Nevertheless, some of its GPUs can also be used to enhance the performance of bitcoin mining rigs. This has been very advantageous for the business as the bitcoin mining boom has actually boosted the need for its graphics cards.
Furthermore, AMD has decided to pursue the crypto mining market further by producing a set of specialized hardware services targeted at digital currency miners.
AMD is noted on the Nasdaq exchange and has a market capitalization of $34 billion. Its shares are currently trading at $31.50.
Hive Blockchain Technologies (TSXV: HIVE)
Hive Blockchain Technologies is a Canadian digital currency mining business that was launched in 2017 as a partnership between Foire Group and leading cloud mining services provider, Genesis Mining. The Vancouver-based business runs mining operations in Iceland, Norway, and Sweden and went public in September 2017 on the Toronto Stock Exchange.
Hive Blockchain has a market capitalization of C$ 152 million and its shares are presently trading at C$ 0.485.
Hut 8 Mining (CVE: HUT)
Hut 8 Mining is another Toronto Stock Exchange-listed stock that supplies equity financiers with direct exposure to the digital currency mining sector. Toronto-based Hut 8 was introduced in collaboration with Bitfury Group and focuses its business operations on mining and blockchain facilities. The company went public in March 2018 and runs its mining farms in Canada.
Hut 8 Mining has a market capitalization of C$ 222 million and its shares are currently worth C$ 2.46.
Northern Bitcoin (ETR: NB2)
Northern Bitcoin is a German bitcoin mining business that leverages renewable energy to mine digital currencies. The Frankfurt-based technology business went public in 2015 and is one of the few blockchain stocks denominated in euros.
Northern Bitcoin has a market capitalization of EUR123 million and its share price currently trades at EUR16.60.
Riot Blockchain (NASDAQ: RIOT)
Colorado-based Riot Blockchain “concentrates on building, supporting and operating blockchain innovations” and digital currency mining. The business has investments in a variety of blockchain startups, such as Canadian bitcoin exchange Coinsquare, and runs a crypto mining operation in Oklahoma City.
Nasdaq-listed Riot Blockchain has a market capitalization of $44.7 million and its shares are trading at $2.80.
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