Bitcoin, a digital currency, has revolutionized the financial landscape since its introduction in 2009. It operates on a decentralized network, utilizing blockchain technology to ensure security and transparency. This innovative currency has attracted a wide range of investors. Its value has seen remarkable highs and lows, making it a focal point of investment discussions.
Bitcoin mining stocks represent companies involved in the process of validating transactions and securing the blockchain. Investing in these stocks offers a way to participate in the cryptocurrency market without directly purchasing Bitcoin. This approach can provide exposure to the sector’s growth while mitigating some of the volatility associated with direct Bitcoin investments. However, it’s important to note that these stocks are still subject to market risks. These include regulatory changes and fluctuations in Bitcoin’s price.
The advantages of investing in Bitcoin mining stocks include leverage to the cryptocurrency market and the potential for significant returns. Additionally, it offers liquidity and ease of trading through traditional stock exchanges. On the downside, these investments can be highly volatile. They are sensitive to Bitcoin’s price movements and regulatory news affecting the crypto sector. Investors should conduct thorough research and consider their risk tolerance before venturing into this dynamic investment area. With that being said, here are two Bitcoin mining stocks to watch in the stock market today.
Bitcoin Mining Stocks To Buy [Or Avoid] Now
- MicroStrategy Incorporated (NASDAQ: MSTR)
- Riot Platforms Inc. (NASDAQ: RIOT)
MicroStrategy Inc. (MSTR Stock)
First up, MicroStrategy Incorporated (MSTR) is a leading independent company in the analytics and business intelligence sector. Its analytics platform serves top brands from the Fortune Global 500 with superior enterprise analytics solutions. The company focuses on two main strategies: acquiring and maintaining Bitcoin and expanding its enterprise analytics software.
Meanwhile, earlier this month MicroStrategy reported its fourth quarter of 2023 financial results. Diving in, the company notched in earnings of $5.62 per share, with revenue of $124.48 million for Q4 2023. Additionally, the company reported that it currently has 190,000 bitcoin holdings at a total cost of $5.93 billion, or $31,224 per bitcoin as of February 5, 2024.
Since the start of 2024, shares of MSTR stock have risen by 10.33% year-to-date. While, during Wednesday’s mid-morning trading session, MicroStrategy stock is trading up 9.88% so far, at $753.81 a share.
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Riot Platforms (RIOT Stock)
Next, Riot Platforms Inc. (RIOT) is a company focused on cryptocurrency mining with an emphasis on Bitcoin. Riot Platforms aims to be one of the largest and lowest-cost producers of Bitcoin in North America. The company’s operations include cryptocurrency mining, electrical engineering, and the development of digital currency technologies.
Just this month, Riot Platforms announced a January 2024 production and operations update. In detail, for January 2024, the company produced 520 bitcoins. Additionally, the company reported that they are currently developing Phase 1 of the company’s second large-scale facility. This will add an extra 400 megawatts of capacity after completing the first phase. The company announced this facility will be energized by the end of March 2024.
Year-to-date, shares of RIOT stock have jumped by 10.84% so far. While, during Monday’s mid-morning trading session, Riot Platforms stock is trading green up 10.14% on the day, trading at $17.00 per share.
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