Riot Platforms (RIOT)
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The Riot Platforms (NASDAQ:RIOT) miner is quite possibly the best crypto mining stock to consider. After a correction of 71% in the last 12 months, RIOT stock seems poised for a big reversal rally. Helping, in Jan., Riot reported hash rate capacity of 9.3EH/s. For the month, the company mined 740 Bitcoin. Riot expects to boost capacity to 12.5EH/s in the first half of 2023. Digital assets will therefore continue to swell in the company’s balance sheet.
Another reason to like Riot is strong fundamentals. As of Q3 2022, the company had zero debt and $255 million in cash. The balance sheet remains strong after navigating the crypto winter. This positions the company for the next leg of expansion in the second half of 2023. It’s also worth noting that for the first nine months of 2022, Riot reported gross mining margin of 65.4%. As Bitcoin trends higher, the company will be positioned to generate healthy cash flows.
Hive Blockchain (HIVE)
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Hive Blockchain (NASDAQ:HIVE) is another name among the best crypto mining stocks that positioned to survive and grow. The stock is lower by 73% on a 12-month basis. However, In the last one month, the stock has trended higher by 40%. The rally is likely to sustain from deeply oversold levels. For Q2 2023, Hive Blockchain reported revenue of $30 million and $18.8 million in adjusted EBITDA. The key point to note is that Hive has pursued steady growth in hash rate. Further, Hive is a diversified miner with Ethereum (ETH-USD) mining activity also contributing to growth in digital assets.
As of January 2023, the company reported 25% month-on-month growth in hash rate capacity. It’s expected that capacity will continue to increase in the coming months and this will translate into higher digital assets. Another point to note is that Hive reported gross mining margin of 54% for Q2 2023. On a year-on-year basis, GMM declined by 3,200 basis points. With Bitcoin recovering from lows, margin expansion can be expected in the coming quarters.
Marathon Digital (MARA)
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Marathon Digital (NASDAQ:MARA) stock has trended higher by 20% in the last one month. I expect the upside momentum to sustain if Bitcoin continues to trend higher. It’s worth mentioning that MARA stock has short interest that around 40% of the free float. I see the stock as a potential short squeeze candidate. As of Jan., Marathon reported an installed hash rate of 11EH/s. The company continues to guide for an increase in hash rate to 23EH/s by mid-2023. Even if the target is delayed by a quarter or two, the growth outlook is bullish.
In terms of concerns, Marathon reported negative adjusted EBITDA for the first nine months of 2022. The company’s revenue has also declined sharply. However, a reversal in trend seems imminent and it’s likely to spark a sharp rally. From a fundamental perspective, the company’s cash and digital assets will ensure that the challenging times are navigated.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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