Top 5 Bitcoin Mining Stocks to Buy in 2024
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Bitcoin Mining stocks provide some of the best opportunities for investors to make money in 2024 and beyond. The entire Bitcoin mining industry market cap sits at ~$25 billion but I don’t expect that to remain low forever as more capital pours into Bitcoin and the overall crypto economy to hedge against fiat currency inflation.
Bitcoin is currently trading near all-time highs, which means there are several publicly-traded Bitcoin mining companies to consider investing in before the April 2024 Bitcoin halving event.
I’ve been investing in Bitcoin mining stocks for over 4 years and know enough about this industry to help you guys decide where to invest for the best returns.
Best Bitcoin Mining Stocks
Here is a list of my top 5 favorite Bitcoin mining stocks to invest in during the 2024/2025 crypto bull run:
Marathon Digital (NASDAQ: MARA)
Marathon Digital was one of the first publicly traded Bitcoin mining companies to start mining Bitcoin during the 2020 COVID-19 pandemic. Since then, the company has amassed the largest Bitcoin HODL out of all BTC mining companies with nearly ~17,000 BTC on its balance sheet as of March 1st, 2024.
MARA also has the largest market cap of all Bitcoin mining companies and is #2 in hashrate with 28 Ex/s. Recently, MARA performed a $1.5 billion share offering to bolster the company’ s balance sheet and expand its mining fleet to a goal of 50 Ex/s by 2025.
Now, MARA does have a few issues in the short run that could harm the effiency of its Bitcoin mining fleet. In the past, MARA chose an asset light business model by outsourcing its Bitcoin mining operations to 3rd party hosting sites. However, using this strategy increased the cost per mined Bitcoin because MARA had to share some of its profits with its mining providers.
The good thing is that Marathon Digital CEO Fred Thiel changed his strategy and now prefers to self-host its mining fleet to reduce the cost per mined Bitcoin. Marathon acquired 2 new BTC farms from Hut8 to lower its cost per production.
MARA gets a lot of hate but that’s common when you’re the undisputed king of any industry. MARA continues to be my top overall favorite Bitcoin mining company mainly because of its size, leadership, and market-leading hashrate.
It also do
CleanSpark (NASDAQ: CLSK)
CleanSpark is my 2nd favorite Bitcoin mining stock on the list that could flip MARA for the #1 spot in 2025 if CleanSpark CEO Zachary Bradford continues to execute on his aggressive growth strategy.
CleanSpark has just over ~4,000 BTC on its balance sheet, which isn’t nearly as large as some other BTC miners but I really like the company’s self hosted BTC mining strategy.
Due to CleanSpark’s brilliant execution over the last 4 quartes, CLSK shares have outperformed its peers over the past 52 weeks. However, CLSK management has diluted shareholders several times during 2024 including the latest $800 million ATM offering to increase the company’s hashrate.
CSLK is arguably the most volatile BItcoin mining stock on this list so be prepared for wild price swings during this crypto current bull run.
Riot Blockchain (NASDAQ: RIOT)
Riot Blockchain was once my 2nd favorite Bitcoin mining stock but that’s changed since CleanSpark rose to prominence during the 2022/2023 crypto bear market.
Riot still maintains a ~8,000 Bitcoin HODL stash but hasn’t done much to aggressively grow its hashrate like CleanSpark and Marathon Digital.
Cipher Mining (NASDAQ: CIFR)
BitFarms (NASDAQ: MARA)
Where to Buy Bitcoin Mining Stocks
How to Buy Bitcoin Mining Stocks
Once you open and fund your brokerage account, you can easily buy these stocks during normal market hours Monday through Friday 9:30am to 4pm EST,
If you enable premarket and afterhours trading then you can buy these stocks before or after the market opening/closing depending on which brokerage you choose.
Just enter the ticker symbol and hit Buy to purchase these stocks. Use a market order if you want to buy them at the current market price or use a limit order if you want to pay a certain price.
How to Swing Trade Bitcoin Mining Stocks
Due to the volatility of this industry, many swing traders try to “time” the markets and swing trade Bitcoin mining stocks.
If done successfully, you can make good money by buying oversold dips and selling into overbought strength.
Another strategy is to buy Bitcoin mining stocks after a
Optimal Exit Strategy for BItcoin Mining Stocks
Download My Monthly Bitcoin Mining Stocks Cheatsheet
Every month, I update my Bitcoin mining stocks cheatsheet complete with comprehensive data on every single publicly traded BTC mining company to help you make better investing decisions.
This spreadsheet will save you hours of research and give you a realistic overview of how each stock stacks up against its competitors.
You can purchase this spreadsheet for just $25
Risk Factors
Bitcoin mining is a high risk, high reward industry where many BTC miners either fail or go bankrupt during each 4 year Bitcoin halving cycle. When the BTC block reward decreases by 50% every 4 years, some companies cannot keep up with the cost of mining Bitcoin due to diminishing block rewards over time. During bear markets, many investors run for the exits and capital outflows become disasterous for miners trying to stay in business.
Share Dilution
Bitcoin mining is one of the only industries in the world where companies aim to keep their product. Since miners want to add BTC to its balance sheet over time, management must find different ways to increase its mining fleet over time to keep up with BItcoin’s 4 year halving event.
Selling ATM shares is the most popular way for companies to raise capital by selling hundreds of millions of dollars in stock at-the-market to fund the purchase of new Bitcoin mining machines. The downside is that most Bitcoin mining stocks crash once the news breaks on any dilutive share offering.
Watch this video to understand exactly how Bitcoin Mining Stock ATM offering work:
Another factor to consider is when management sells stock before a dilutive share offering. Many investors consider this practice “insider selling” but remember that these offerings are marked with the intent to sell. That means management can take their time and sell shares when they believe the underlying stock is at an attractive price.
Of course, investors usually panic and sell right away these press releases hit the newsire. In my opinion, you can make a lot of money by buying stock once retail investors rush to the exits if you are a long term investor.
Share dilution can affect the value of your holdings in the short run but it’s absolutely necessary for Bitcoin miners to sell shares instead of liquidating BTC holdings to raise capital.
In the long run, HODLing Bitcoin and selling stock is a better move to increase long term value for shareholders.
Other lesser risk factors include:
- Natural Disasters: Fires, hurricanes, tornados, and floods could potentially wipe out Bitcoin mining facilities and force miners to make repairs on their BTC mining farms.
- Declining Bitcoin Prices: Bitcoin miners tend to outperform when BTC rising and underperform when BTC falls
- Rising Cost Per BItcoin Mined: If miners don’t install updated machines and maintain self-hosted facilities then their cost per BTC mined may increase and reduce profit margins
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