Bitcoin experienced a tremendous rally to start 2024, hitting an all-time high of just over 73,000. This, along with the passage of Bitcoin ETFs and the recent Bitcoin halving, has sparked yet another surge of investor interest in the cryptocurrency space. If you’re interested in investing in this space then you’ll want to take a look at Bitcoin mining stocks.

With this in mind, I’ve broken down my top 5 Bitcoin mining stocks – ranked in order from my favorite to least favorite.  

Bitcoin Mining Stocks: What to Know

As a quick reminder, Bitcoin miners play a dual role in the Bitcoin ecosystem. They help verify transactions and maintain the integrity of the Bitcoin network. For their hard work in verifying transactions, miners receive Bitcoin (which helps add coins to the total supply).

Mining Bitcoin requires solving complex mathematical problems, which requires heavy computing and enormous amounts of electricity. From a business perspective, mining Bitcoin profitably requires using the cheapest electricity while maximizing the amount of BTC that you can mine.

The profitability of mining Bitcoin fluctuates dramatically as it is very closely tied to the price of BTC. Now, let’s jump into my picks for the top 5 Bitcoin mining stocks to keep your eyes on.

1.) Marathon Digital Holdings (Nasdaq: MARA)

My analysis is based on Marathon Holding’s Investor Presentation that it posted on March, 19th, 2024.

2023 Revenue: $387 million 

2023 Net Income: $261 million

BTC Held: 16,930 BTC

When it comes to Bitcoin mining stocks, Marathon Holdings is one of the biggest players in the came. It boasts one of the biggest portfolios of mining sites, including locations in Paraguay, Africa, and UAE. 

Marathon is also leaning toward establishing full ownership of its locations. It recently acquired three fully-owned BTC mining farms, helping increase its percentage of owned facilities from 4% to 54%. Taking more ownership over its facilities allows Marathon to improve its cost per coin, increase control/efficiency, and expand its ability to optimize operations by using its own tech.

Marathon also takes a very environmental approach to mining Bitcoin. The company reported being 100% carbon neutral in 2023 and that 55% of its energy came from sustainable sources in Q4 2023. This stance will undoubtedly help Marathon Digital curry favor with investors, government agencies, and the general public as the crypto industry matures.

2.) Riot Platforms (Nasdaq: RIOT)

My analysis is based on Riot Platform’s Investor Presentation that it posted on April 18th, 2024.

2023 Revenue: $281 million

2023 Net Income: $-49 million

BTC Held: 8,490

Riot Platforms is usually one of the first names that comes to mind when you think of Bitcoin mining stocks. After Marathon, Riot is the second-largest holder of BTC among Bitcoin miners. It holds 8,490 Bitcoins, which is more than most other miners. It’s also more than SpaceX or Block Inc. (NYSE: $SQ). 

Riot Blockchain is also a leader in “curtailment”, which is the practice of shutting down operations strategically. When there is a lot of stress on the energy grid, Riot can shut down operations and direct its energy usage elsewhere. For this sacrifice, Riot receives payment from the grid operator. 

Curtailment can help bring stability to energy grids, which makes this practice especially popular with investors, government agencies, and the general public. But, curtailment is a win-win-win for Riot. Riot can use curtailment to curry favor with external stakeholders, receive energy credits, and save money on transmission costs. Riot estimates that it saves $1 million per month on transmission costs thanks to curtailment. 

Riot is also investing its revenues heavily back into its business. Mainly, it is building/expanding its Rockdale and Corsicana factories. For these reasons, I consider Riot Platforms to be of the top bitcoin mining stocks to buy.

3.) CleanSpark (Nasdaq: CLSK)

My analysis is based on CleanSpark’s Investor Presentation that it posted in February 2024.

2023 Revenue: $168 million 

2023 Net Income: $-137 million

BTC Held: 3,573 BTC

CleanSpark boasts six BTC mining facilities, mainly located throughout Georgia. Over the years, CleanSpark has shown consistent revenue growth and a commitment to buying and holding Bitcoin. This Bitcoin mining company is growing quickly and has done a good job of weathering the many downturns of the crypto market.

However, a major concern is that CleanSpark’s expenses have been growing just as quickly as its revenue. In 2023, the company reported a net loss of $136 million, up from a loss of $57 million in 2022.

4.) Cipher Mining (Nasdaq: CIFR)

My analysis is based on Cipher Mining’s Investor Presentation that it posted on March 5th, 2024.

2023 Revenue: $127 million 

2023 Net Income: $-26 million

BTC Held: 1,433 BTC

Cipher Mining isn’t as big as others on this list, which is why I’ve listed it at #4. However, this Bitcoin mining company growing quickly. It reported revenue of $126 million in 2023, a massive increase from just $3 million the year before. If this growth is any indication of the leadership’s plans moving forward then you’ll want to keep Cipher Mining on your radar.

Cipher Mining currently owns three facilities: Odessa, Alborz, and Bear & Chief. But, the company is planning to expand rapidly in 2024.

5.) Iris Energy (Nasdaq: IREN)

My analysis is based on Iris Energy’s Investor Presentation that it posted in February 2024.

2023 Revenue: $75.5 million

2023 Net Income: $-172 million

Market Cap: 

I’ve included Iris Energy on this list as it’s one of the few diversified Bitcoin mining companies. Most BTC mining companies are fully invested in mining. On the other hand, Iris Energy owns and operates data centers. It uses these data centers for Bitcoin mining, AI cloud services, and other high-powered computing. 

With this in mind, Iris Energy could be poised to benefit from the popularity of AI, in addition to crypto. Based on this alone, Iris Energy is worth following over the coming years. However, with a 2023 net loss of $172 million, Iris Energy clearly still has some work to do.

Bitcoin Mining Stocks: Honorable Mentions

There are a few more Bitcoin mining stocks that are worth researching, even though they did not make my top five. These companies are:

• Bitfarms (Nasdaq: BITF): You can learn more from their Investor Presentation.
• Bit Digital (Nasdaq: BTBT) You can learn more from their Investor Presentation.
• Hive Technologies (Nasdaq: HIVE): This is another crypto company that’s worth checking out. It’s not quite a pure mining company. But, it provides computing power to mining companies.

The Bitcoin mining space is a fascinating blend of new technologies (mining rigs and blockchain) and old technologies (energy). The industry seems to evolve almost quarterly, with miners racing against each other to find the best sources of cheap, efficient energy to maximize their output. For the companies that get it right, the potential payoff is enormous. I’m looking forward to watching the industry evolve over the coming years.

I hope that you’ve found this article valuable when it comes to discovering the top 5 Bitcoin mining stocks to buy. If you’re interested in learning more then please subscribe below to get alerted of new articles.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor.