Following the impending Bitcoin halving, many investors expect the reduced supply of new BTC to lead to an increase in the price of Bitcoin. Therefore, many are looking to Bitcoin mining stocks with the assumption that these will also benefit from an increase in BTC’s price. Here are a few platforms where you can snatch up some of these stocks before the Bitcoin halving.
Methodology
Our process for selecting the top platforms to purchase 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 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
- eToro
- Robinhood
- WeBull
- Charles Schwab
- E*TRADE
- Top 5 Bitcoin mining stocks for 2024
- Marathon Digital (MARA)
- CleanSpark (CLSK)
- Riot Platforms Inc (RIOT)
- Cipher Mining (CIFR)
- 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
eToro
eToro is a multi-asset investment company. It allows users to trade and invest in assets, including stocks, cryptocurrencies, ETFs, currencies, and commodities. It’s well-known for its social trading feature, which allows users to copy the trades of successful investors. eToro was founded in 2007 by brothers Yoni Assia and Ronen Assia together with David Ring. The company’s headquarters are located in Tel Aviv, Israel, although it has offices in Cyprus, the U.K., U.S., and Australia.
Robinhood
Robinhood is a a popular 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 if its user-friendly interface and the minimum requirements to start trading.
WeBull
Webull is an an online brokerage platform that provides commission free 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, USA, and is designed with both novice and experienced traders in mind.
Charles Schwab
Charles Schwab is a multinational financial services company. It is headquartered in Westlake, Texas, USA. The company offers a wide range of financial services and products, including brokerage services, wealth management, banking, and financial advisory services to both individual investors and institutional clients.
E*TRADE
ETRADE was one of the first companies to offer electronic trading, hence the “E” in its name. It offers a wide range of services, including stock, options, and futures trading, as well as 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
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. These moves are aimed at 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.
CleanSpark (CLSK)
CleanSpark (CLSK), a 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 mix of sustainable energy sources. This includes 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.
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 electrical switchgear engineering and fabrication operations in Denver.
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.
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 as 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 indicates a revenue of $120 million in 2023, marking a significant increase from the $3.03 million revenue generated in 2022.
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 a variety of 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. For some, it is a way to gain exposure to Bitcoin performance without actually having to hold or buy 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.
What is Bitcoin halving?
The upcoming Bitcoin halving, scheduled for April 20, 2024, will see a reduction in block issuance rewards from 6.25 BTC to 3.125 BTC. Historically, such halving events have had significant implications, particularly for smaller mining operations. These entities often struggle to maintain profitability as the reduced block rewards squeeze their margins.
Bitcoin halving is a pivotal event in the cryptocurrency’s ecosystem, occurring roughly every four years. It is a built-in mechanism designed to manage inflation by sustaining scarcity. However, its effects extend beyond the immediate adjustment in mining rewards.
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The halving can potentially impact the entire Bitcoin network, influencing factors such as transaction fees, hash rate, and overall market sentiment. Miners may need 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 that 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 the equipment, such as processors or ASICs, Bitcoin mining stocks, or directly invest by mining at home via mining pools. Each method has tradeoffs in potential profit and risks. Solo or home mining is generally 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 potentially.
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 depends 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.
At the moment, 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 is not publicly known. 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 currently disclose certain financial information.
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