In this article, we discuss the 5 companies that benefit from crypto mining. If you want to read our detailed analysis of these companies, go directly to the 10 Companies that Benefit From Crypto Mining.
5. Riot Blockchain, Inc. (NASDAQ: RIOT)
Number of Hedge Fund Holders: 12
Riot Blockchain, Inc. (NASDAQ: RIOT) is a company focusing on the industrial-scale mining of cryptocurrencies. The stock has been hit in recent weeks as crypto-related companies struggle amid a crash in the prices of many crypto coins and panicked selling. It is placed fifth on our list of 10 companies that benefit from crypto mining. The company’s shares have returned 1,116% to investors in the past year. The company aims to be the lowest cost producer of Bitcoin in the North American region.
On June 10, Riot Blockchain, Inc. (NASDAQ: RIOT) announced that it had produced 227 bitcoins in May, an increase of 220% year-on-year. The year-to-date production of Bitcoin by Riot has now climbed to 924, compared to 460 over the same period last year.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Riot Blockchain, Inc. (NASDAQ: RIOT) with 2.2 million shares worth more than $120 million.
4. Canaan Inc. (NASDAQ: CAN)
Number of Hedge Fund Holders: 9
Canaan Inc. (NASDAQ: CAN) is a Chinese company that sells computer hardware products that are used in mining cryptocurrencies. It is ranked fourth on our list of 10 companies that benefit from crypto mining. The stock has returned 277% to investors in the past year. In addition to making products for blockchain, the firm also engages in the artificial intelligence and data centre business. It has a market cap of close to $1.5 billion and posted more than $68 million in revenue last year.
On June 1, Canaan Inc. (NASDAQ: CAN) soared 10% as the company revealed earnings for the first quarter of 2021, reporting a revenue of over $61 million, an increase of more than 530% compared to the revenue over the same period in 2020.
At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $47 million in Canaan Inc. (NASDAQ: CAN), up from 4 the preceding quarter worth $3.8 million.
3. Marathon Digital Holdings, Inc. (NASDAQ: MARA)
Number of Hedge Fund Holders: 10
Marathon Digital Holdings, Inc. (NASDAQ: MARA) is placed third on our list of 10 companies that benefit from crypto mining. The company’s shares have returned 2,365% to investors in the past twelve months. The firm has transitioned from being a patent holder to a digital asset firm in recent years with a focus on blockchain mining operations. The company will join the Russell 2000 Index at the end of June. It hopes to generate revenue by mining crypto coins at low costs and selling them at a profit.
On June 2, Marathon Digital Holdings, Inc. (NASDAQ: MARA) announced that it had mined more than 226 bitcoins in May, a 40% month-on-month increase. The figure brings the total number of Bitcoins mined by the firm to 5,518. These are worth over $200 million.
At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $197 million in Marathon Digital Holdings, Inc. (NASDAQ: MARA), up from 8 the preceding quarter worth $5.9 million.
2. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Advanced Micro Devices, Inc. (NASDAQ: AMD) is a semiconductor manufacturer based in California. The products marketed by the company are used in crypto mining operations around the world. It is ranked second on our list of 10 companies that benefit from crypto mining. The company’s shares have returned 54% to investors in the past year. The CPU and GPU technologies made and sold by the firm make blockchain transactions faster. AMD stock has been soaring in the past few months amid a global semiconductor shortage.
On May 28, investment advisory Benchmark initiated coverage on Advanced Micro Devices, Inc. (NASDAQ: AMD) stock with a Buy rating and a price target of $100 on the back of expectations that the firm will continue to drive share gains for a few years to come.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ: AMD) with 25 million shares worth more than $1.9 billion.
1. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
NVIDIA Corporation (NASDAQ: NVDA) is a computer systems design and services company. The processing units made and sold by the firm for computers and smartphones, mainly for gaming, are also used by crypto miners as they offer great performance in blockchain technology. The firm is placed first on our list of 10 companies that benefit from crypto mining. The stock has offered investors returns exceeding 99% in the past twelve months.
On June 22, investment advisory Raymond James upgraded NVIDIA Corporation (NASDAQ: NVDA) stock to Strong Buy from Buy and hiked the price target to $900 from $750 on the back of the expected recovery of data centre spending that will benefit the visual computing firm.
At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
