3 Cryptocurrency-Related Stocks to Ride the Next Crypto Wave
In the relentless and dynamic waves of the cryptocurrency market, the resilience and adaptability of key players hold the essence of value growth.
Amidst the volatile realm of digital currencies, three distinct names illuminate the landscape with their strategic moves and operational prowess. These companies, symbolic of the crypto industry’s dynamism, exhibit remarkable growth trajectories. They deftly maneuver through Bitcoin mining complexities, infrastructure enhancements, and savvy treasury management. Their recent performances, detailed in the article ahead, reveal the critical tactics these titans employ to thrive in cryptocurrency.
Each entity navigates the crypto landscape with unique approaches, from the first one’s bolstered Bitcoin production and sales efficiency to the second one’s strategic infrastructure expansions and the third one’s scaled mining capacities and treasury management. The article unveils the strategies of these crypto titans as they harness the relentless surge in the digital currency space.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Riot Platforms (RIOT)
Source: Venomous Vector/Shutterstock
Riot Platforms (NASDAQ:RIOT) exhibited a 21% increase in Bitcoin production from October 2023 to November 2023. This consistent growth suggests the company’s operational prowess and efficiency in Bitcoin mining operations. Despite a 9% increase in network difficulty, Riot Platforms boosted its production, demonstrating its resilience and adaptability to industry challenges.
Fundamentally, the surge in average Bitcoin produced daily saw a 25% increase from October 2023 to November 2023. This surge highlights Riot’s enhanced mining efficiency, likely due to improved hardware, enhanced mining algorithms, or operational optimizations to increase the output of mined Bitcoins.
Additionally, Riot Platforms has managed to maintain a steady increase in Bitcoin holdings, with a 7% year-over-year increase in Bitcoin holdings in November 2023. The company can accumulate and retain a significant volume of Bitcoin, leveraging it for future strategic initiatives or capitalizing on favorable market conditions.
Similarly, the surge in Bitcoin sales by 23% from October 2023 to November 2023 resulted in a substantial increase in net proceeds. This significant rise in revenue from Bitcoin sales underscores Riot’s capacity to capitalize on market opportunities. Likewise, it also suggests efficiency in converting its mined bitcoins into substantial financial gains.
Finally, the impressive increase of 28% in the average net price per bitcoin sold from October 2023 signals Riot’s adeptness in maximizing revenue from bitcoin sales. This achievement likely stems from strategic timing in the selling process or market positioning. Therefore, it allows Riot to command higher prices for its Bitcoin holdings and drive growth in its market valuations.
Bitfarms (BITF)
Source: shutterstock.com/Unknown man
The mining company Bitfarms (NASDAQ:BITF) supports rapid growth potential through strategic investment in infrastructure expansion. Bitfarms has strategically allocated its capital investments to optimize returns and position itself advantageously for the Bitcoin halving in April 2024. The company has prudently expanded its operations, focusing on upgrades and new projects aligning with its ROI hurdle.
In detail, there is an expansion in operating capacity from 6.1 exahash per second in September 2023 to 6.3 exahash per second in October 2023. The company is achieving 32% growth in operating capacity, reaching 240 megawatts in October 2023 compared to a year ago.
Additionally, the company is contracting low-cost energy totaling 573 megawatts, with only 42% placed into operation, indicating significant future development potential. Also, Bitfarms is initiating expansion in Paraguay with acquisitions of hydropower agreements for 50 and 100 megawatts, with construction expected to be completed in Q1 2024.
Bitfarms focuses on sustained and predictable operational costs, evident in the company’s ongoing efforts to optimize existing facilities. The company focuses on reducing direct costs per bitcoin, a strategic goal that can lead to improved profitability and increased margins.
Furthermore, the company expanded the Argentina-based facility in Río Cuarto, and the operational capacity improved from 50 megawatts to 54% beyond the original design. Hence, the facility added 800 petahash per second and achieved over 1.6 exahash per second in October 2023.
Finally, Bitfarms is demonstrating significantly reduced energy costs in Argentina during the summer months, estimating costs below $0.03 per kilowatt-hour compared to higher costs during the winter. Therefore, the facility aims to become one of the lowest-cost operating facilities in the industry.
Cipher Mining (CIFR)
Source: FabrikaSimf / Shutterstock.com
To begin with, Cipher Mining (NASDAQ:CIFR) expanded its self-mining capacity to 7.2 exahash per second during Q3 2023. It has a total capacity in service or under contract of 8.4 exahash per second after acquiring Bitmain’s latest generation of S21 rigs.
Additionally, the acquisition of Black Pearl in Texas provides conditional Electric Reliability Council of Texas (ERCOT) interconnection approval for up to 300 megawatts. This is expanding the potential hash rate to 23.5 exahash per second by the end of 2025. Fundamentally, the significant increase in mining capacity positions Cipher Mining to capitalize on the growing demand for bitcoin mining. This substantial growth trajectory reflects the company’s ability to scale its operations efficiently.
Furthermore, Cipher Mining boasts an electricity cost of approximately $0.027 per kilowatt hour, accounting for most operating expenses, and this low electricity cost contributes to its best-in-class unit economics. The company manages its Bitcoin treasury by selling enough monthly to cover operating expenses and existing CapEx commitments. Beyond these sales, it may sell more bitcoin for expansion opportunities or hold excess to strengthen its overall treasury balance.
Looking at individual site developments, such as Alborz, it is receiving ERCOT approval for a supplemental grid connection so that the company can increase operational uptime significantly. These site-specific initiatives demonstrate Cipher Mining’s strategic focus on optimizing existing operations. Therefore, the company expands its capabilities at various locations, ensuring value growth through potential revenue diversification.
On the date of publication, Yiannis Zourmpanos 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.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Cryptocurrency-Related Stocks to Ride the Next Crypto Wave appeared first on InvestorPlace.
