Top Crypto Mining Stocks for Q4 2022 – Investopedia
The cryptocurrency industry is still young but growing rapidly. Cryptocurrencies are a relatively new form of digital currency, with Bitcoin being the most well-known example. Cryptocurrencies utilize blockchain technology, which makes possible the maintenance of a secure and decentralized record of transactions without the need for a trusted third party.
Cryptocurrency mining companies use computers to solve complex computational problems to validate transactions on a blockchain and generate new cryptocurrency coins. Cryptocurrency can then be held and used for certain transactions or be sold for fiat currency. Some of the big names in the crypto mining industry include Riot Blockchain Inc., Canada-based HIVE Blockchain Technologies Ltd., and Marathon Digital Holdings Inc.
Crypto mining stocks, as represented by an exchange-traded fund (ETF)—the Amplify Transformational Data Sharing ETF (BLOK)—have dramatically underperformed the broader market. BLOK has provided a total return of -51.5% over the past 12 months, well below the S&P 500’s total return of -10.7%.
Below, we look at the top three crypto mining stocks with the best value, the fastest growth, and the best performance. The market performance numbers above and all statistics in the tables below are as of Sept. 13, 2022.
These are the crypto mining stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales eventually could produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
Source: YCharts
These are the cryptocurrency mining stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors to identify companies that are able to grow revenue organically or through other means and to find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share (EPS). However, sales growth can also prove potentially misleading about the strength of a business because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
Source: YCharts
These are the crypto mining stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
Source: YCharts
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
YCharts. “Financial Data.”
Canaan Inc. "Canaan Inc. Reports Unaudited Second Quarter 2022 Financial Results."
Hut 8 Mining Corp. "Hut 8 Reports Operating and Financial Results for Q2 2022."
Riot Blockchain Inc. "Riot Announces August 2022 Production and Operations Updates."
Marathon Digital Holdings Inc. "Marathon Digital Holdings Reports Second Quarter 2022 Results Along with Bitcoin Production and Mining Operation Updates for July 2022."
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