February was a profitable month for the cryptocurrency industry, with Bitcoin (BTC) prices increasing significantly. The impressive gains made by these five stocks were made possible through their exposure to the Bitcoin mining industry.
Bitcoin mining
Bitcoin mining is the process of using computing power to validate transactions and add blocks to the growing blockchain network. The more computing power used for this purpose, the higher the rewards for miners. As such, many investors have sought to capitalize on the potential profits of Bitcoin mining. They are doing this by investing in related stocks such as those mentioned above.
Iris Energy (IREN) was the top-performing mining stock in February, with an impressive 29% gain. According to research, the majority of this stellar growth occurred mid-month when IREN released a statement that they had purchased 4.4 EH/s worth of mining rigs from Bitmain. This momentous acquisition drove the company’s stock price up significantly, resulting in it reaching $2.85 in after-hours trading – a 2.5% increase from the day prior.
Cipher Mining (CIFR) saw an impressive increase in value of 27% during the month of February, coming in a close second to the top performer. The Texan mining company had made impressive strides since January when they announced positive updates regarding expansion plans.
Other miners such as Sphere 3D Corp. (ANY), Cathedra Bitcoin Inc. (CBIT), and Stronghold Digital Mining Inc. (SDIG) also showed strong gains throughout February, ranging from 7%-11%. This was higher than the returns seen from Bitcoin investments over the same period, indicating that these companies have been able to capitalize on potential growth opportunities in the sector.
