July 21, 2024

Foreign investment: five promising mining companies

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8 min.

Foreign investment: five promising mining companies


Making money on cryptocurrency mining is quite a popular thing.money for a normal farm, then you can use an alternative option - invest in mining companies.Foreign investors are now often interested in them.

Not available for everyone

Most public mining companiesregistered far beyond the borders of the Russian Federation. In fact, their shares are also traded on foreign trading platforms. Currently, access to foreign exchanges for Russians is severely limited, if not outright prohibited. However, if you live in another country or still have access to foreign exchanges, then shares of mining companies are also available to you.

We have already talked about some of them in
one of the previous materials. Therefore, I will not consider companies like Riot Platforms or Hut 8 Mining in detail. There are other potentially interesting players in the market.

Cipher Mining Inc

This is a relatively young company thatappeared only in 2021. With all this, it is one of the largest in its industry, second in capitalization only to such giants as Riot Blockchain and Marathon Digital Holdings.

Cipher Mining's activities are exclusively related to BTC mining and the development of its data centers. In addition, the company itself considers the goal to be the expansion and strengthening of the Bitcoin network in the United States.

A company may be attractive to investors for several reasons:

  1. Despite the fact that Cipher Mining is new to the market, it is already one of the largest in the industry. This suggests that management has resources.
  2. Strong operating results of the company. Recently
    Data for March 2023 has been released.Within a month, a record hashrate level of 5.7 EH/s was achieved. Compared to February, the figure increased by 10%. This was achieved through the commissioning of 5 023 new devices.
  3. The company's shares are relatively cheap. At their peak in September 2021, their price was more than $15 apiece. Now - only $2.32.

Since the beginning of the year, the company has added more than300%. The next target for the stock will be the January high – the resistance level of $2.9. The support level should be the lower border of the gap dated March 28 at $1.91. Adding to the positive side is the fact that the stock is trading above its 50-day and 200-day moving averages. In addition, in mid-March, the so-called “golden cross” formed, which is also a signal for bullish sentiment. On the chart, the 50-day moving average is indicated in yellow, and the 200-day moving average is indicated in blue:

Foreign investment: five promising mining companies

Source: tradingview.com

The company's shares are traded on the NASDAQ exchange under the ticker CIFR. In total, there are about 248.6 million of them in free circulation. Market capitalization as of April 6, 2023 – $576 million.

HIVE Blockchain Technologies Ltd

HIVE Blockchain Technologies is the first mining company whose shares began to be publicly traded on stock exchanges. The IPO took place in 2017 on the TSX Venture Exchange.

The company conducts its business in countries withcold climate and stable socio-political situation: Canada, Sweden and Iceland. HIVE uses green energy for mining. Company balance in bitcoins at the end of February 2023
was 2 340 BTC. The hashrate for February reached 3 EH/s. This figure increased by 16% compared to January. A total of 250 BTC were mined.

For the first month of 2023, the company's sharesincreased by almost 200%. However, by March 10, the price fell by 48%. At the beginning of April, HIVE securities began to grow again. They have already broken above the 50-day moving average (in blue) and are very close to the 200-day moving average (in yellow). The nearest resistance level is $3.71, and the nearest support level is $2.85.

Foreign investment: five promising mining companies

Source: tradingview.com

The company's shares are traded on the TSX VentureExchange and NASDAQ under the same ticker HIVE. In total, there are slightly less than 84 million securities in free circulation. Market cap as of April 6 = $276.4 million or approximately CAD 370 million.

Bitfarms Ltd

This is a Canadian mining company.She has ten farms in four countries: Argentina, Paraguay, Canada and the USA. A special feature of Bitfarms is that it receives electricity for mining mainly from hydroelectric power plants.

On April 3, the company released a report onproduction for March 2023. This way, 424 BTC were mined, which is 27 more than months earlier. The hashrate of the company’s equipment increased from 4.7 EH/s to 4.8 EH/s compared to February. At the same time, operating capacity remained at the same level – 188 MW. 178 MW or 94.6% comes from hydroelectric power.

Since the end of 2021, the company's shares have been falling in price,falling almost 25 times. However, in 2023 the picture changed. In the first two weeks of January, securities grew by more than 185%. After which they corrected by 45%. Since March 10, Bitfarms securities began to grow again.

Buy company shares right nowquite risky. The price is below both the 50-day (indicated in yellow) and 200-day moving averages. The nearest support level is $0.85, and the resistance level is $1.08.

Foreign investment: five promising mining companies

Source: tradingview.com

Bitfarms is traded on the NASDAQ exchange and onToronto Stock Exchange (TSX) under the ticker BITF. The number of shares in free float exceeds 238 million. The company's market capitalization at the time of writing exceeds $223 million, or just over 300 million Canadian dollars.

TeraWulf Inc

The company positions itself as environmentally friendlybusiness oriented. They try to carry out mining using electricity from renewable sources: water, nuclear and solar. The company has two centers of activity: New York and Pennsylvania.

TeraWulf has not yet provided a report for March.But February pleased me with the results. The company was able to transfer one of its divisions, Nautilus Cryptomine, completely to nuclear power. This is the first such case in the United States. In addition, an 82% increase in hashrate was achieved within a month. Total
143 BTC mined.

The company's shares are very volatile. This year alone, they have already managed to first grow by 76% in January, and then fall by 54% by mid-March. By the beginning of April, shares rose again by 95%.

From the point of view of technical analysis, valuableTeraWulf shares are in an upward trend. They are trading above the 50-day moving average (shown in yellow) but below the 200-day moving average (shown in blue). Overcoming the latter will be an even stronger signal for growth. The current resistance level is this year's high at $1.17, the support level is $0.82.

Foreign investment: five promising mining companies

Source: tradingview.com

TeraWulf shares are traded on the NASDAQ stock exchange under the ticker symbol WULF. In total, there are slightly more than 186 million securities in circulation. The company's market capitalization as of April 6 was more than $178.5 million.

Iris Energy Ltd

This is another company that dealsmining exclusively through renewable sources. In its work, Iris Energy uses wind, solar and hydroelectric power plants. This becomes possible due to the fact that the company operates throughout the world: in Asia, Canada and the USA. Its headquarters are located in Sydney, Australia.

On April 3, the company announced in an official statement on its website that it had increased its hashrate from 2 EH/s to 2.8 EH/s. This leap is not extreme. Recently the company
announced an increase in capacity to 5.5 EH/s. All that remains is to put them fully into action.

A good sign for the company was the lack of deposits in American banks: Silicon Valley, Signature Bank and Silvargate, which
failed in March 2023.

Company shares from early January to midFebruary 2023 increased by more than 400%. However, then a correction occurred, and the securities lost about 60%. By March 22, they had grown again by 60%. The current share price is $2.91.

At the moment there has been some calm.Shares are trading sideways. Support level is $2.61, resistance level is $3.15. The stock is above its 50-day moving average (in yellow) and below but very close to its 200-day moving average (in blue).

Foreign investment: five promising mining companies

Source: tradingview.com

Iris Energy shares trade on NASDAQ under the ticker symbol IREN. In total, there are almost 55 million securities in free circulation. The company's market capitalization as of April 6 was $160 million.

Thus, a trend can be noted: mining companies have shown growth since the beginning of 2023. Some more, some less. Further growth prospects will depend on how the price of Bitcoin changes.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.