With the US cryptocurrency stocks dollar down a massive 10.7% against peer currencies in the first half of 2023—its worst performance in 50 years—investors are looking for alternative investments for safety or growth prospects. Cryptocurrencies aren’t known for their stability, but many investors see potential in their volatility. Furthermore, some (including BlackRock CEO Larry Fink) actually see the potential in Bitcoin to overtake the US dollar to become the world’s reserve currency. Finally, investors may also want to keep an eye on the secondary benefits of cryptocurrencies as One Big Beautiful Bill raises the debt ceiling by several trillion dollars.
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Direct investments in crypto are the most common way to increase exposure to the sector, but investors seeking diversification or wishing to avoid the risks of trading and storing tokens can also consider a number of stocks linked to cryptocurrencies. These include companies involved in crypto mining, companies providing infrastructure or hardware used in the industry, etc. Interestingly, while there are many reasons to invest in crypto stocks linked to the prospects of the cryptocurrency sector, one of the most successful companies has also made lucrative investments in the energy sector.
Massive mining operations and holdings boost Marathon’s momentum
This has led to impressive results: In June, the firm won 211 bitcoin blocks through a complex mining process, representing more than 5% of all bitcoin rewards available that month. The company’s shares surged following the news and are up nearly 6% last month.
The company appears set to achieve its ambitious production expansion goals. MARA executives have set a production target of 75 exahashes per second (a measure of computational power crucial to the successful mining of bitcoin) by the end of the year. That’s a full 40% higher than the hash rate it expects to achieve by the end of 2024.
cryptocurrency stocks
MARA’s massive mining capacity has also contributed to significant BTC holdings, as the company held nearly 48,000 BTC as of the end of June. With a value of around $5.2 billion, this is the biggest chunk of MARA’s market value—investors should keep in mind that a drop in crypto prices could completely devastate the company.
Still, 5 out of 10 analysts consider MARA stock a buy, while the remaining four recommend holding it. Analysts anticipate shares could rise by more than 21%, a potential boon for investors looking to invest in the mining industry.
Another mining company with strong hash rate performance
Like MARA, Cipher Mining Inc. NASDAQ:CIFR is primarily a Bitcoin mining operation. The nearly 47% increase in its share price over the past month is also due to recent good news on this front.
In the second quarter, Cipher outperformed estimates for its self-mining capacity for its new Black Pearl site located in Texas. The reported hash rate of 3.4 EH/s was significantly higher than the company’s previous estimate of 2.5 EH/s.
This could be a good time for investors to join this uptrend as Cipher expects to increase its hash rate further in the coming months as other new mining equipment comes online and site installations are completed.
This optimism is reflected in the 11 ‘buy’ ratings given to CIFR shares and the 26% upside forecasts.
The energy sale could make a big difference for Hut 8.
Hut 8 NASDAQ:HUT focuses primarily on bitcoin mining. Its shares have nearly doubled in value since late April. The company recently announced an expansion into regulation-friendly Dubai, which the company says reflects the efficiency of its capital strategy. Hut 8 is also associated with Donald Trump Jr. and Eric Trump through a venture called American Bitcoin Corp., which recently raised $220 million in backing from accredited investors.
But the main reason for the recent surge in Hut’s stock price may be the successful deployment of its energy infrastructure outside of the cryptocurrency sector. Mining companies like Hut require a massive supply of electricity for mining operations, and the infrastructure needed to support these activities can also be used for more traditional applications. For example, the company recently announced five-year capacity contracts for its four natural gas-powered plants with the Ontario Independent Electricity System Operator. These contracts represent a total of approximately 310 megawatts of power generation capacity.
With rising energy demand and prices, such a shift could prove extremely beneficial for companies like Hut 8, and analysts are of the same opinion—Hut’s shares have a consensus ‘buy’ rating from all 19 analysts, with a 21% upside potential.
Should you invest
With the US dollar down a massive 10.7% against peer currencies in the first half of 2023—its worst performance in 50 years—investors are looking for alternative investments for safety or growth prospects. Cryptocurrencies aren’t known for their stability, but many investors see potential in their volatility. Furthermore, some (including BlackRock CEO Larry Fink) actually see the potential in Bitcoin to overtake the US dollar to become the world’s reserve currency. Finally, investors may also want to keep an eye on the secondary benefits of cryptocurrencies as One Big Beautiful Bill raises the debt ceiling by several trillion dollars.
Direct investments in crypto are the most common way to increase exposure to the sector, but investors seeking diversification or wishing to avoid the risks of trading and storing tokens can also consider a number of stocks linked to cryptocurrencies. These include companies involved in crypto mining, companies providing infrastructure or hardware used in the industry, etc. Interestingly, while there are many reasons to invest in crypto stocks linked to the prospects of the cryptocurrency sector, one of the most successful companies has also made lucrative investments in the energy sector.
Massive mining operations and holdings boost Marathon’s momentum
Marathon Digital NASDAQ:MARA is one of the largest crypto mining firms in the United States, with a market value of more than $6 billion. This has helped it build a massive mining fleet.
This has led to impressive results: In June, the firm won 211 bitcoin blocks through a complex mining process, representing more than 5% of all bitcoin rewards available that month. The company’s shares surged following the news and are up nearly 6% last month.
The company appears set to achieve its ambitious production expansion goals. MARA executives have set a production target of 75 exahashes per second (a measure of computational power crucial to the successful mining of bitcoin) by the end of the year. That’s a full 40% higher than the hash rate it expects to achieve by the end of 2024.
MARA’s massive mining capacity has also contributed to significant BTC holdings, as the company held nearly 48,000 BTC as of the end of June. With a value of around $5.2 billion, this is the biggest chunk of MARA’s market value—investors should keep in mind that a drop in crypto prices could completely devastate the company.
Still, 5 out of 10 analysts consider MARA stock a buy, while the remaining four recommend holding it. Analysts anticipate shares could rise by more than 21%, a potential boon for investors looking to invest in the mining industry.
Another mining company with strong hash rate performance
Like MARA, Cipher Mining Inc. NASDAQ:CIFR is primarily a Bitcoin mining operation. The nearly 47% increase in its share price over the past month is also due to recent good news on this front.
In the second quarter, Cipher outperformed estimates for its self-mining capacity for its new Black Pearl site located in Texas. The reported hash rate of 3.4 EH/s was significantly higher than the company’s previous estimate of 2.5 EH/s.
This could be a good time for investors to join this uptrend as Cipher expects to increase its hash rate further in the coming months as other new mining equipment comes online and site installations are completed.
This optimism is reflected in the 11 ‘buy’ ratings given to CIFR shares and the 26% upside forecasts.
The energy sale could make a big difference for Hut 8.
Hut 8 NASDAQ:HUT focuses primarily on bitcoin mining. Its shares have nearly doubled in value since late April. The company recently announced an expansion into regulation-friendly Dubai, which the company says reflects the efficiency of its capital strategy. Hut 8 is also associated with Donald Trump Jr. and Eric Trump through a venture called American Bitcoin Corp., which recently raised $220 million in backing from accredited investors.
But the main reason for the recent surge in Hut’s stock price may be the successful deployment of its energy infrastructure outside of the cryptocurrency sector. Mining companies like Hut require a massive supply of electricity for mining operations, and the infrastructure needed to support these activities can also be used for more traditional applications. For example, the company recently announced five-year capacity contracts for its four natural gas-powered plants with the Ontario Independent Electricity System Operator. These contracts represent a total of approximately 310 megawatts of power generation capacity.
With rising energy demand and prices, such a shift could prove extremely beneficial for companies like Hut 8, and analysts are of the same opinion—Hut’s shares have a consensus ‘buy’ rating from all 19 analysts, with a 21% upside potential.
Before you consider Marathon Digital, here’s what you need to know.
MarketBeat tracks Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified five stocks that top analysts are advising their clients to quietly buy before the broader market gets a little volatility… and Marathon Digital wasn’t on the list.
Although analysts currently have Marathon Digital rated as a Hold, top-rated analysts believe these five stocks are better buys.
$1,000 in Marathon Digital right now?
Before you consider Marathon Digital, here’s what you need to know.
MarketBeat tracks Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified five stocks that top analysts are advising their clients to quietly buy before the broader market gets a little volatility… and Marathon Digital wasn’t on the list.
Although analysts currently have Marathon Digital rated as a Hold, top-rated analysts believe these five stocks are better buys.