With the recent 2024 Bitcoin halving, many investors anticipated that the reduced supply of newly minted BTC would lead to an increase in the price of Bitcoin. As a result, there’s been a surge in the interest in Bitcoin mining stocks, with many anticipating that the stock value would rise along with the price of BTC. Here are a few platforms to snatch up some of these stocks following the Bitcoin halving.
Methodology
Our process for selecting the best platforms for Bitcoin mining stocks was thorough, with tests conducted over a period of six months. Many platforms were considered with only the top options were selected.
Our methodology considers a multitude of factors, such as fees, availability, user-friendliness, reputation, security, and many other factors. Robinhood, eToro, Charles Schwab, WeBull, and E*TRADE reflect the top options for purchasing Bitcoin mining stocks.
- Robinhood: Is known for commission free trading and its user-friendly interface. Robinhood is a good platform for investors looking to purchase Bitcoin mining stocks without high transaction costs and with ease of use, especially for beginners.
- eToro: Distinguishes itself with its social trading features. eToro allows users to copy the trades of experienced investors. It is also available globally and has a wide range of financial instruments, making it a versatile choice for portfolio diversification and investing in Bitcoin mining stocks.
- Charles Schwab: Is esteemed for its reputation in the finance industry and offering extensive resources and trading tools. Charles Schwab provides investors with the security and knowledge needed to navigate the Bitcoin mining stock market.
- WeBull: Appeals to a broad audience by offering advanced trading tools and real-time market data for both novice and experienced traders. It also has no minimum deposit requirements, which facilitates easy on-ramping into Bitcoin mining stocks.
- E*TRADE: Is preferred for its educational materials and strong security measures, ensuring that investors have the knowledge and protection to make informed decisions when investing in the market of Bitcoin mining stocks.
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- Top platforms to buy Bitcoin mining stocks
- 1. eToro
- 2. Robinhood
- 3. WeBull
- 4. Charles Schwab
- 5. E*TRADE
- Top 5 Bitcoin mining stocks for 2024
- 1. Marathon Digital (MARA)
- 2. CleanSpark (CLSK)
- 3. Riot Platforms Inc (RIOT)
- 4. Cipher Mining (CIFR)
- 5. Hut 8 Corp (HUT)
- What are Bitcoin mining stocks?
- What to know about Bitcoin mining
- What is Bitcoin halving?
- Investing in Bitcoin mining stocks still carries risk
Top platforms to buy Bitcoin mining stocks
1. eToro
eToro is a multi-asset investment company. It allows users to trade and invest in assets, including stocks, cryptocurrencies, ETFs, currencies, and commodities, making it one of the best platforms for Bitcoin mining stocks. It’s well-known for its social trading feature, allowing users to copy successful investors’ trades. eToro was founded in 2007 by brothers Yoni Assia and Ronen Assia, together with David Ring. The company’s headquarters are in Tel Aviv, Israel, although it has offices in Cyprus, the U.K., U.S., and Australia.
2. Robinhood
Robinhood is a popular online trading platform in the U.S. that allows users to invest in stocks, options, exchange-traded funds (ETFs), and cryptocurrencies commission-free. It was created by Vladimir Tenev and Baiju Bhatt in 2013. The platform quickly became popular among younger investors because of its user-friendly interface and the minimum requirements for trading.
3. WeBull
Webull is an online brokerage platform that provides commission-free online trading of stocks, options, and ETFs. Webull was founded in 2017 by Wang Anquan, a former employee of Alibaba Group. The company is headquartered in New York City, U.S, and is designed with both novice and experienced traders in mind.
4. Charles Schwab
Charles Schwab is a multinational financial services company. It is headquartered in Westlake, Texas, U.S. The company offers various financial services and products, including brokerage services, wealth management, banking, and financial advisory services to individual investors and institutional clients.
5. E*TRADE
ETRADE was one of the first companies to offer electronic trading, hence the “E” in its name. It provides a wide range of services, including stock, options, futures trading, mutual funds, and fixed-income investments. ETRADE has expanded its offerings to include banking services as well.
Bitcoin mining stock platforms compared
| Company | Availability | Fees | Minimum deposit | Assets |
|---|---|---|---|---|
| Robinhood | U.S. and territories | Commission free | No minimum | Stocks, ETFs, options, and crypto |
| eToro | 75 countries | 1% | $50-$100 | Stocks, ETFs, options, and crypto |
| WeBull | 180+ countries | Commission free | No minimum | Stocks, ETFs, and options |
| Charles Schwab | U.S. | Commission free | No minimum | Stocks, ETFs, futures, and options |
| E*TRADE | U.S. | Commission free | No minimum | Stocks, ETFs, mutual funds, futures, and options |
Top 5 Bitcoin mining stocks for 2024
1. Marathon Digital (MARA)
Marathon Digital Holdings, Inc. (MARA), a premier digital asset technology firm, is a U.S.-based cryptocurrency mining company. It has cultivated strategic partnerships and expansions to bolster its mining capacity, enhancing its operational efficiency and competitiveness. As one of the largest Bitcoin miners in North America, the company reported a total revenue of $380 million for the trailing twelve months (TTM) in 2023. This represents a significant increase from its 2022 revenue of $110 million. As a result, it is one of the top Bitcoin mining companies and crypto mining stocks.
2. CleanSpark (CLSK)
CleanSpark (CLSK), a top U.S.-based Bitcoin mining company, manages data centers largely powered by low-carbon energy sources. The company’s commitment to sustainability is reflected in its use of a mix of sustainable energy sources, including nuclear, hydroelectric, solar, and wind power. CleanSpark’s financial statements for 2023 reveal a TTM revenue of $210 million. This figure represents a rise from the $110 million revenue recorded in 2022 and an increase from the $81.44 million revenue reported in 2021.
3. Riot Platforms Inc (RIOT)
Riot Platforms specializes in Bitcoin mining and digital infrastructure. The company operates Bitcoin mining data centers in central Texas and manages Denver’s electrical switchgear engineering and fabrication operations. Riot Blockchain’s recent financial disclosures show that the company achieved a revenue of $280 million in 2023. This represents growth from the $250 million revenue in 2022 and an increase from the $210 million revenue reported in 2021.
4. Cipher Mining (CIFR)
Cipher Mining (CIFR) emerged in 2021 following a merger between Cipher Mining Technologies Inc. and a direct subsidiary of Good Works Acquisition Corp (GWAC). It is an industrial-scale Bitcoin mining company that operates within the United States and is headquartered in New York, NY, under the umbrella of Bitfury Holding. The latest financial reports from Cipher Mining indicate a revenue of $120 million in 2023, marking a significant increase from the $3.03 million revenue generated in 2022.
5. Hut 8 Corp (HUT)
Hut 8 Mining Corp (HUT) is a cryptocurrency mining company listed on public stock exchanges. It is based in Alberta, Canada, and boasts one of the industry’s highest capacity rates. With 11 facilities throughout Canada, Hut 8 utilizes various renewable energy sources, such as hydro and nuclear power, to support its operations. Financial statements from Hut 8 Mining reveal a revenue of $73.89 million in 2023, a decrease from the $99.16 million in revenue recorded in 2022.
What are Bitcoin mining stocks?
Bitcoin mining stocks are a special category of public companies that mine Bitcoin. Many investors choose to buy mining stocks as an investment strategy. For some, it is a way to gain exposure to Bitcoin performance without holding or buying BTC.
What to know about Bitcoin mining
Bitcoin mining is energy-intensive. As a result, mining companies often set up operations in locations where electricity is cheaper or where they can use renewable energy sources to minimize costs and environmental impact.
To remain competitive, mining companies continuously invest in maintenance and upgrading their hardware. They also focus on scaling operations by acquiring more miners and optimizing data center infrastructure to increase efficiency and reduce costs.
The profitability of Bitcoin mining depends on various factors, including the price of Bitcoin, electricity costs, and the network’s mining difficulty. Companies must constantly adapt. Managing their operations efficiently through market fluctuations ensures that companies remain profitable.
“Managing your risk is crucial when dealing with Bitcoin mining stocks because their value can fluctuate wildly. Consider using stop-loss orders, which act as a safety net to minimize large losses. It’s also wise to regularly review how much money you’ve invested in these stocks and make adjustments as needed, especially during unstable market conditions. Setting clear stop-loss triggers can help safeguard your investments during these times.”
Steven Kibbel, Financial advisor at Prop Firm App: BeInCrypto interview
What is Bitcoin halving?
The Bitcoin halving occurred on April 19, 2024. It reduced the block issuance reward from 6.25 BTC to 3.125 BTC. Historically, such halving events had significant implications, particularly for smaller mining operations. These entities often needed help maintaining profitability as the reduced block rewards squeezed their margins.
The Bitcoin halving is a pivotal event in the cryptocurrency’s ecosystem, occurring roughly every four years. It has a built-in mechanism designed to manage inflation by sustaining scarcity. However, its effects extended beyond the immediate adjustment in mining rewards.
The halving impacts the entire Bitcoin network, influencing transaction fees, hash rate, and overall market sentiment. Miners needed to recalibrate their strategies and equipment investments to adapt to the new reward structure. Furthermore, the halving generates increased interest and speculation in Bitcoin, potentially leading to price volatility in the crypto markets. While the Bitcoin halving is a fundamental aspect of its monetary policy, its ramifications reverberate throughout the cryptocurrency ecosystem, affecting miners, investors, and the broader market dynamics.
Looking to maximise opportunities around the Bitcoin halving? Check our complete guide to Bitcoin halving investment strategies.
Investing in Bitcoin mining stocks still carries risk
It is important to keep in mind that investing is inherently risky, and you can potentially lose money. This is the case with stocks, crypto, and any other financial activity where there is an expectation of profit. Therefore, users should take precautions when buying Bitcoin mining stocks. Create an investment strategy, never risk more than you can afford to lose, and consult an expert if necessary.
Frequently asked questions
Bitcoin miners are a good investment for those who plan to mine Bitcoin. However, mining Bitcoin today requires an immense amount of startup capital. Many solo miners are in the red, that is to say, do not make any profit until a significant amount of time after they start mining Bitcoin.
Investing in Bitcoin mining depends on your investment strategy. For example, you can invest in equipment such as processors, ASICs, or Bitcoin mining stocks, or you can directly invest by mining at home via mining pools. Each method has tradeoffs in potential profit and risks. Solo or home mining is riskier because you may not recoup your operational costs.
Bitcoin mining stocks could be down for a multitude of reasons. The price of Bitcoin mining stocks is strongly correlated to the price of Bitcoin; therefore, if the Bitcoin price drops, mining stocks may drop with it.
The best Bitcoin mining stock depends on your personal investment strategy. For example, if you want to purchase a stock with great potential, you may want to choose a stock with a good valuation/market capitalization, relatively low stock price, and a good earnings report. However, this does not necessarily mean that the company itself has good fundamentals.
No, it is not possible to mine Bitcoin for free, despite what some websites may promise you. The fundamental idea of Bitcoin mining is that there is a cost associated with mining it. Whether the cost is in mining equipment or electricity, miners must pay to mine Bitcoin.
The top five Bitcoin mining stocks depend on a few factors. If you consider market cap, the top mining companies are Marathon Digital, Phoenix Group, CleanSpark, Riot Blockchain, and Cipher Mining. However, the top Bitcoin mining companies could change if you consider earnings, profit, or Bitcoin holdings.
Bitcoin mining is profitable for some miners but not for many. Bitcoin mining requires a large initial investment to purchase the equipment and data centers if necessary. Many mining companies and miners go bankrupt when the price of Bitcoin drops.
To start Bitcoin mining, you will need a mining client, ASIC miners, mining rigs, reliable and cheap energy, internet service (usually a backup provider), and many other items to start mining. You will also need a significant amount of capital to be able to stay operational while you are waiting to mine blocks for profit. Potential miners should keep this in mind before starting operations.
Currently, Marathon Digital has the highest market cap and profits out of all mining companies. Marathon also holds the most Bitcoin out of all mining companies. The company made about $380 million in revenue in 2023.
The companies that mine the most Bitcoin are private. The top three known mining companies that own the most Bitcoin are Marathon, CleanSpark, and Hut 8. However, this may change over time and may not include companies that do not disclose certain financial information.
Yes, you can. Bitcoin mining can be profitable if you join a mining pool and contribute significant hashing power to earn bigger rewards. However, if you mine solo on a home computer, you may not see large returns or, in some cases, any returns.
One of the downsides of Bitcoin mining is the hefty investment in equipment with no guaranteed returns. It can also be illegal in some jurisdictions, so check your local regulations. Additionally, Bitcoin mining may pose negative environmental effects due to the vast energy consumption.
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