Bullish on Bitcoin? Consider Buying These 3 Crypto Mining Stocks Under $10

With popular cryptocurrencies, including bitcoin (BTC), soaring in price over the past few months, many investors have flocked to digital assets. But even though Bitcoin happens to be the most popular digital currency globally, it has nonetheless hit some lows over the past year on investor concerns over China's ban on crypto mining and various  hacks and thefts.

However, bitcoin recently hit fresh highs. Taproot, which happens to be bitcoin’s first upgrade in the last four years, is expected to make transactions more private and efficient. Furthermore, according to a Data Bridge Marketing report, the cryptocurrency mining market is expected to grow at an 11.5% rate over the next seven years.

So, if one is bullish on bitcoin’s growth prospects, we think it could be worth considering adding below-$10 crypto mining stocks Hive Blockchain Technologies Ltd. (HIVE), Bitfarms Ltd. (BITF), and Ebang International Holdings Inc. (EBON) to one portfolio.

Click here  to check out our Cryptocurrency Industry Report for 2021

HIVE Blockchain Technologies Ltd. (HIVE)

Headquartered in Vancouver, Canada, HIVE operates as a cryptocurrency mining company across Canada, Sweden, and Iceland. The company mines and sells digital currencies, including Ethereum, Ethereum Classic, and Bitcoin.

On October 1, 2021, HIVE reported that the company raked in record fees on the decentralized finance (DeFi) frenzy over the summer. It announced that it had mined 32,000 ether (ETH) and 121,000 Ethereum classic (ETC) for the fiscal second quarter, ended September 30, 2021, compared to 25,000 ETH in the first quarter.

For its  fiscal first quarter, ended June 30, 2021, HIVE’s revenues increased 466% year-over-year to $37.20 million. The company’s net income increased 933.3% year-over-year to $18.60 million. Also, its adjusted EBITDA increased 1,032.5% year-over-year to $29.60 million.

Analysts expect HIVE’s revenues for its fiscal year 2022 to increase 125% year-over-year to $150.07 million. Over the past year, the stock has gained 1,012.5% in price to close Friday’s trading session at $4.32.

Bitfarms Ltd. (BITF)

BITF is a self-mining company based in Toronto, Canada, that runs vertically integrated mining operations with onsite technical repair, proprietary data analytics, and company-owned electrical engineering and installation services to deliver high operational performance and uptime. It operates in the cryptocurrency mining segment (Backbone) and the electrical services segment (Volta).

On November 11, 2021, BITF announced that it had acquired a 24-megawatt hydropower farm in Washington, where it plans to house approximately 6,200 Bitmain S19j Pro miners that are capable of 620 petahash/second. BITF’s Chief Mining Officer, Ben Gagnon, said, “The facility’s hydro power is expected to cost approximately 25% less than the average cost of power at our Québec farms, making it the most cost-effective source of power currently in our portfolio and reducing our corporate wide average to below 4 U.S. cents/kwh.”

BITF’s revenues increased 397.6% year-over-year to $36.70 million for its fiscal second quarter, ended June 30, 2021. The company’s gross profit came in at $23.35 million compared to a $134,000 loss in the prior-year quarter. Its net loss per share came in at $0.02 compared to $0.04 in the year-ago period.

BITF’s revenues for its fiscal year 2021 are expected to increase 372% year-over-year to $163.80 million. The stock has gained 1,894.4% in price over the past year to close Friday’s trading session at $8.58.

Ebang International Holdings Inc. (EBON)

Headquartered in Hangzhou, China, EBON is a blockchain technology company with robust application-specific integrated circuit (ASIC) chip design capability. With its years of experience and expertise in ASIC chip design and continued access to wafer foundry capacity, it has established itself as a global bitcoin mining machine producer.

On May 28, 2021, EBON clarified that China’s crackdown on crypto mining has no direct or indirect effect on the company because its mining business is based overseas beyond China’s jurisdiction. The company also said that due to the shortage of chip production capacity, customers would go overseas to mine, and the near-term prospects for the company would not be affected.

For the six months ended June 30, 2021, EBON’s net revenues increased 65.7% year-over-year to $18.30 million. Its net loss came in at $4.26 million compared to $6.96 million in the previous period. In addition, its gross profit was $5.64 million compared to a $0.97 million loss in the same period. Over the past month, the stock has gained 23% in price to close Friday’s trading session at $2.08.

HIVE shares were trading at $4.25 per share on Monday morning, down $0.07 (-1.62%). Year-to-date, HIVE has gained 124.87%, versus a 26.37% rise in the benchmark S&P 500 index during the same period.

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.

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