Crypto mining has become one of the hottest industries and has emerged as an alternative investment class for investors seeking to gain from the growth prospects of cryptocurrencies. The most well-known cryptocurrency, bitcoin, has soared almost 1,000% over the past 12 months, while the second-most-valuable cryptocurrency, ethereum, gained roughly 1,200% over this period.
Despite this impressive run, betting on these cryptocurrencies could be very risky considering their high volatility. However, investing in a cryptocurrency stock can be a relatively safer way to gain exposure because it offers the potential of benefitting from the company’s revenue and earnings growth. Also, crypto mining stocks typically offer a higher gross margins due to the relatively low cost of mining the currencies versus their sky-high values.
Ebang International Holdings Inc. (EBON – Get Rating), HIVE Blockchain Technologies Ltd. (HVBTF), and GreenBox POS (GBOX – Get Rating) are three affordable crypto mining stocks that are delivering big gains in the current crypto boom. They are all currently trading below $20, and we think they should be on investors’ watchlists.
EBON is an investment company that operates blockchain processing units for mining cryptocurrencies, research, manufacturing, and sales of telecommunication products, and the provision of related services.
EBON has completed a 6 nm ASIC chip that is designed for Bitcoin mining machines to gain a competitive edge in the market in terms of performance. The company plans to commence volume production of its 6 nm chip when it determines that market conditions are suitable. Last December, EBON stated that it expects to commence public testing of its cryptocurrency exchange and launch the exchange in the first quarter of 2021.
For the six months ended September 2020, EBON’s revenue was $11 million, representing a 50.6% year-over-year decrease. Its total computing power sold plunged 80.6% year-over-year to 0.25 million Thash/s. Its loss per share was $0.06 versus $0.16 posted in the same period last year.
EBON ended Friday’s trading session at $10.60, surging 74.6% year-to-date. During the past six months, the stock climbed 7.6%.
HIVE Blockchain Technologies Ltd. (HVBTF)
HIVE Blockchain Technologies Ltd. operates as a cryptocurrency mining company in Canada, Sweden, and Iceland. It mines and sells digital currencies, such as Ethereum, Ethereum Classic, and Bitcoin.
HVBTF recently took a big l step in smashing through its updated 2021 ASIC capacity goal of 2,000 Petahash per second (PH/s) with the purchase of 10,500 next-generation miners with an aggregate operating hash power of 711 PH/s. This has taken its total future capacity to 2,474 PH/s or 2.474 Exahash per second (EH/s).
During the quarter ended December 31, 2020, its income from digital currency mining…
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