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The buzz around the cryptocurrency market is expected to continue into 2022 and beyond. Greater adoption of digital and contactless commerce and payments via blockchain-backed cryptocurrencies in this coronavirus-hit world is expected to keep momentum going in this particular market.
According to a Fortune Business Insights report, said market is expected to reach $ 1.9 billion by 2028, with a CAGR of 11.1% from 2021 to 2028.
The strong adoption of bitcoin, the most popular and widely used digital currency despite being highly volatile, has so far acted as a key catalyst for crypto miners.
The bitcoin space has been on a roller coaster ride throughout 2021. Currently trading at $ 46,904.30, bitcoin hit an all-time high of $ 68,990.90 on November 8, from $ 27,882.79 on November 4. January and falling again to $ 45,588.83 on December 20, per coindesk data .com.
This upside down situation is expected to continue due to lingering regulatory concerns over crypto transactions and crypto mining that testify to increased government control over the cryptocurrency market.
Nonetheless, the great hedging opportunities that bitcoin offers investors against inflation are expected to continue to boost bitcoin adoption rate and drive the growth of the cryptocurrency market.
The blockchain technology on which the entire cryptocurrency market relies minimizes the risk of currency losses, double counting and hacking, as it takes advantage of a distributed consensus that makes tampering of records very difficult.
Additionally, the growing momentum of other digital currencies like Litecoin, Ethereum, and Zcash, will likely continue to further boost the outlook for crypto miners.
Cryptocurrencies, which have the potential to revolutionize the process of peer-to-peer transactions and remittances, benefit greatly from the decentralized system, low fees, transparency of distributed ledger technology, protection against consumer chargebacks and fast international transfers.
Given this optimistic scenario, many companies around the world are now embracing the idea of ​​cryptocurrencies as payment options and increasing their bitcoin holdings. It’s still another tailwind.
All of these factors bode well for crypto mining companies making a concerted effort to capitalize on the pool of opportunities present in the cryptocurrency market.
According to a Data Bridge Market Research report, the global cryptocurrency mining market is expected to experience a CAGR of 11.5% between 2021 and 2028.
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Against this backdrop, here we focus on three crypto mining stocks with strong fundamentals that prepare them well to capitalize on the cryptocurrency boom in the near term.
The following stocks have rallied strongly since the start of the year, outperforming the rally in the S&P 500 index.
Price performance since the start of the year
Image source: Zacks Investment Research
NVIDIANVDA shares have returned 129.8% year-to-date. NVDA is capitalizing heavily on the growing momentum of its GPUs in the cryptocurrency space, which also gives it a competitive advantage over other chipmakers.
NVDA remains well positioned to capitalize on the strong demand for cryptocurrency mining with its notable launch of Cryptocurrency Mining Processor (CMP), which is ideal for professional mining. These processors are well equipped to increase the efficiency of extraction power, as they feature lower peak voltage and frequency.
In the third quarter of fiscal 2022, this currently Zacks Rank # 2 (Buy) player generated $ 105 million in revenue from the inclusion of cryptocurrency mining processors in his platform. market form.
You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
Marathon Digital Holdings‘MARA shares have gained 224.8% year-to-date. MARA is one of the largest self-mining bitcoin companies in North America. It benefits from the growing deployment of miners, growing bitcoin production, solid bitcoin holdings, and an increase in its hash rate.
Currently player Zacks Rank # 3 (Hold) produced 1,252 self-mined bitcoins in the recently reported third quarter 2021, up 91% from the previous quarter’s production. In addition, its number of deployed miners reached 25,272 at the end of the same quarter. Marathon Digital held 7,035 bitcoins as of September 30, 2021.
That aside, the purchase of 30,000 S19j Pro miners from BITMAIN remains a major step towards expanding bitcoin production. Additionally, Marathon Digital recently signed a contract with BITMAIN to purchase ANTMINER S19 XP (140 TH / s) bitcoin miners, which are expected to ship between July 2022 and December 2022. This is a big plus as well.
Hut 8 MinesHUT shares have gained 78.3% year-to-date. HUT is one of the pioneers in digital asset mining. The same is true of the strong momentum of its self-extracting operations and the expansion of hosting services. Also, the increase in bitcoin holdings and HUT’s outlook around its purchase of NVIDIA GPUs are noteworthy.
Zacks’ currently ranked 3 player bitcoin holdings exceeded 5,000 in Q3 2021. Additionally, HUT’s bitcoin balance stood at 5,053 as of November 10, 2021.
In addition, Hut 8 Mining received the entire fleet of high performance NVIDIA GPUs, which were deployed at its Medicine Hat site. HUT strives to operate the Ethereum network through the Luxor Pool using these servers. In addition, this move is expected to increase its overall exploitation rate by approximately 1,600 Gigahash. That aside, Hut’s construction of the third mine site in North Bay, Ontario, remains remarkable.
Bitcoin, like the internet itself, could change everything
Blockchain and cryptocurrency have sparked one of the most exciting talking points in a generation. Some call it the “Internet of Money†and predict that it could change the way money works forever. If this is true, it could do to banks what Netflix did to Blockbuster and Amazon to Sears. Experts agree that we are in the early stages of this technology and as it develops it will create several investment opportunities.
Zacks just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and other cryptocurrencies with much less volatility than buying them directly.
See 3 Crypto Related Stocks Now >>
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NVIDIA Corporation (NVDA): Free Inventory Analysis Report
Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report
Hut 8 Mining Corp. (HUT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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