Foreign investment: five promising mining companies

Article reading time:
8 min.

Opinion

Earnings on the extraction of cryptocurrency - a thingquite popular. But if there is no money for a normal farm, then you can use an alternative option - invest in mining companies. They are now often interested in foreign investors.

Not available for everyone

Most public mining companiesregistered far outside the Russian Federation. Actually, their shares are also traded on foreign trading floors. Now 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 discussed some of them in
one of the previous posts. Therefore, I will not go into detail about companies like Riot Platforms or Hut 8 Mining. There are other potentially interesting players in the market.

Cipher Mining Inc.

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

The activities of Cipher Mining are exclusively related to the mining of BTC and the development of their data centers. In addition, the company itself sees the goal of expanding and strengthening the Bitcoin network in the United States.

For investors, the company may be attractive 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
   March 2023 data released.A record hash rate of 5.7 EH/s was reached in a month. Compared to February, the figure increased by 10%. This was achieved through the introduction of 5,023 new devices.
3. The company's shares are relatively cheap. At a maximum in September 2021, their cost was more than $15 apiece. Now it's 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 bound of the gap dated March 28 at $1.91. Positive is the fact that the stock is trading above the 50-day and 200-day moving averages. In addition, the so-called “golden cross” formed in mid-March, which is also a signal for bullish sentiment. On the chart, the 50-day moving average is marked in yellow, and the 200-day moving average is marked in blue:

Source: tradingview.com

The company's shares are traded on the NASDAQ under the ticker CIFR. In total, there are about 248.6 million of them in free circulation. Market capitalization on 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 was launched in 2017 on the TSX Venture Exchange.

The company conducts its business in countries with coldclimate 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. In total, 250 BTC were mined.

In the first month of 2023, the company's shares roseby almost 200%. True, by March 10, the price fell by 48%. At the beginning of April, HIVE securities again turned to growth. They have already overcome the 50-day moving average (indicated in blue) and are close to the 200-day moving average (indicated in yellow). The nearest resistance level is $3.71 and the support level is $2.85.

Source: tradingview.com

The company's shares are traded on the TSX Venture Exchange.and NASDAQ under the HIVE ticker of the same name. In total, there are a little less than 84 million securities in free circulation. Market capitalization on April 6 = $276.4 million or about 370 million Canadian dollars.

Bitfarms Ltd

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

On April 3, the company released a production reportfor March 2023. Thus, 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 capacities remained at the same level - 188 MW. 178 MW or 94.6% come from hydroelectric power.

Since the end of 2021, the company's shares have been depreciating, fallingalmost 25 times. However, in 2023 the picture has changed. In the first two weeks of January, the paper rose by more than 185%. After that, they adjusted by 45%. Since March 10, Bitfarms securities began to grow again.

Right now the stock of the company is enough to buyrisky. The price is below both the 50-day moving average (in yellow) and the 200-day moving average. The nearest support level is $0.85 and the resistance level is $1.08.

Source: tradingview.com

Bitfarms is listed on the NASDAQ and the Stock Exchange.Toronto 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 an environmentally friendlyoriented business. They try to produce mining on electricity from renewable sources: water, nuclear and solar. The company has two centers of operations: New York and Pennsylvania.

TeraWulf has not yet released a report for March.But here is February pleased 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 US. In addition, an 82% hashrate growth was achieved in a month. Total
mined 143 BTC.

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, the shares were up 95% again.

From the point of view of technical analysis, securitiesTeraWulf are in an uptrend. 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.

Source: tradingview.com

TeraWulf shares are traded on the NASDAQ under the symbol WULF. In total, there are a little more than 186 million securities in circulation. The market capitalization of the company as of April 6 is more than $178.5 million.

Iris Energy Ltd

This is another company thatmining exclusively through renewable sources. In its work, Iris Energy uses wind, solar and hydroelectric power plants. This is made possible by the fact that the company operates worldwide: in Asia, Canada and the USA. Its headquarters is located in Sydney, Australia.

On April 3, the company announced in an official statement on its website that it had increased the hash rate from 2 EH/s to 2.8 EH/s. Such a jump is not limiting. Recently the company
announced a capacity increase to 5.5 EH/s. It remains only to put them fully into action.

A good sign for the company was the absence of deposits in US banks: Silicon Valley, Signature Bank and Silvargate, which
crashed in March 2023.

Company shares from the beginning of January to the middleFebruary 2023 increased by more than 400%. However, then came the correction, and the paper lost about 60%. By March 22, they again grew by 60%. The current value of the shares is $2.91.

There has been some calm for now.Shares are trading sideways. The support level is $2.61, the resistance level is $3.15. Stocks are above the 50-day moving average (in yellow) and below, but very close to the 200-day moving average (in blue).

Source: tradingview.com

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

Thus, a trend can be noted: mining companies have shown growth since the beginning of 2023. Someone more, someone 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.