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), HIVE Blockchain Technologies Ltd. (HVBTF), and GreenBox POS (GBOX) 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.
Ebang International Holdings Inc. (EBON)
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 surged 174% year-over-year to $13.7 million. The company saw a record cash flow of $13.7 million during the quarter.
Its gross mining margin expanded to $10.6 million from $3.8 million posted in the prior year period. Its EPS for the quarter rose to $0.05 from $0.01 posted in the same period last year. Frank Holmes, Executive Chairman of HIVE, stated: “In spite of the decreased number of Ethereum coins mined during this quarter as a result of the lower transaction fees when compared to the previous quarter, our Bitcoin operations doubled in the quarter so that our combined revenue and cash flow made new highs.”
HVBTF ended Friday’s trading session at $3.73, rallying 2760.7% over the past year. During the past six months, the stock soared 1128.3% higher.
GreenBox POS (GBOX)
GBOX is a technology company that develops, markets and sells innovative blockchain-based payment solutions. The company is focused on developing and monetizing disruptive blockchain-based applications that are integrated within an end-to-end suite of financial products and capable of supporting a multitude of industries.
Last month, GBOX plans to add Secure Token Technology as part of its stabilized Gen3 software offering, with a preference given to early adopters and existing users of the company’s current ecosystem.
GBOX’s revenue for the third quarter, ended September 30, 2020, plunged 79% year-over-year to $3.1 million because the company paused operations with Gen 1 technology and re-launched an infinitely scalable platform architecture (Gen 2). However, its revenue increased 33% sequentially. Its gross margin declined to 39.6% from 53.8% posted in the prior year period.
GBOX ended Friday’s trading session at $11.81, rallying 6249.5% over the past year. During the past six months, the stock has surged 1130.2%.
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EBON shares were trading at $9.86 per share on Monday afternoon, down $0.74 (-6.98%). Year-to-date, EBON has gained 62.44%, versus a 5.06% rise in the benchmark S&P 500 index during the same period.
About the Author: Namrata Sen Chanda
Namrata is an accomplished financial journalist, with nearly a decade of experience. She specializes in interpreting news releases and framing investment strategies, and has worked with some of the leading companies in real estate, banking, insurance, mutual funds, financial research, fintech, and investment education. More...
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