3 Crypto Mining Stocks With Massive Upside Potential

Analysts see solid growth prospects for cryptocurrency miners. Here, we look at a few Buy-rated opportunities.

cryptocurrency mining software
(Image credit: Getty Images)

The cryptocurrency space – which investors can gain exposure to through a range of asset classes, including digital currencies, exchange-traded funds (ETFs) and crypto mining stocks, among others – can best be described as volatile.

Take for instance the roller-coaster ride Bitcoin went on in 2021. The cryptocurrency entered the year trading around $29,000, rocketed its way north of $63,000 by mid-April, crashed back below $30,000 by mid-July before bouncing up to $69,000 by November and ending the year around $46,000.

That still worked out to an impressive year-over-year gain – and many on Wall Street see the momentum (and volatility) continuing for cryptocurrencies in 2022.

But what does this mean for investors in the broader crypto space?

One of the stronger plays, according to many Wall Street pros, is in crypto miners. "Cryptocurrency 'mining' is the process through which the blockchain is secured and new cryptocurrency coins are brought into circulation," says Jefferies analyst Jonathan Petersen.

Mining can be very profitable, adds Petersen, especially for those companies that have numerous mining machines that are able to produce above-average hash rates (the power required to mine and process transactions on the blockchain).

"Crypto mining is a rapidly emerging space with huge upside, but it is risky," says B. Riley Securities analyst Randy Binner. "While challenges exist, we see significant opportunities from current levels for miners that have infrastructure in place and can build scale," he adds.

With that in mind, here are three top-rated crypto miners. The space is fairly limited at the moment, and even the best cryptocurrency miners are risky plays for investors and can be prone to wide and sporadic price swings. As such, we've decided to tap the TipRanks database (opens in new tab); while Wall Street analysts have largely ignored the sector, we looked for those crypto mining names that have earned Buy ratings from the pros and offer significant upside potential. Let's take a closer look.

Data is as of Jan. 18.

Maya Sasson
Contributing Writer, Kiplinger.com
Maya Sasson, originally from San Francisco, California, is a financial blogger focusing on U.S. stocks as well as analyst activity. Before diving into the world of financial writing, she earned a B.S. in Mathematics from Tufts University, and began her career as a data analyst for a software company.