Historic Breakthrough! On July 14, $比特币 (BTC.CC)$ Bitcoin broke through the $120,000 barrier, reaching as high as $123,000 during the trading session. Several major banks predict that Bitcoin will reach $200,000 by 2025.

This frenzy has also quickly spread to the mining stock market, driving a collective rebound in mining stocks. However, the volatility of these stocks is noticeably higher, and their overall trend does not entirely follow Bitcoin. For investors, how can they assess the future market and select more promising mining stocks? This week's opportunity dispatch will share insights.

What is Bitcoin Mining?

As we all know, $比特币 (BTC.CC)$ Bitcoin is a decentralized virtual currency that is not controlled by governments or traditional financial institutions, allowing for peer-to-peer transactions. For example, if you want to buy a car with Bitcoin and the seller accepts Bitcoin as a payment method, you can directly send Bitcoin to purchase the car.

Due to the limited supply of 21 million Bitcoins, it has a very strong scarcity. As its price continues to rise, more and more people are joining the 'mining' activity. However, mining is not an easy task; it requires significant investment, expensive equipment, and professional manpower... So, without the right tools and expertise, one cannot undertake this task.

In simple terms, Bitcoin mining is the process where miners use specialized equipment to solve complex computational problems. Once a miner successfully mines a block, they receive a fixed amount of Bitcoin as a reward. However, mining consumes a large amount of computational resources and electricity. It is said that the annual electricity consumption of Bitcoin mining is equivalent to the annual electricity usage of a medium-sized country, and the price of a professional mining machine can be as high as $10,000... With increasing competition, the probability of individuals or small mining farms mining Bitcoin is becoming lower, and only large-scale mining operations with substantial computing power can survive in the long term.

So, what investment opportunities are there for investors in the process of Bitcoin (BTC) generation?

5 mining concept stocks

Mining operations involve companies that specialize in mining Bitcoin or providing mining equipment, such as well-known miners and mining equipment suppliers. $MARA Holdings(MARA.US)$ 、 $Riot Platforms(RIOT.US)$ , and mining equipment suppliers $NVIDIA(NVDA.US)$ ， $Canaan(CAN.US)$ . When the price of Bitcoin rises, the profits of these companies also increase, attracting more investor attention.

The strength of Bitcoin mining companies is mainly determined by the efficiency of Bitcoin mining and overall costs, typically measured by the hash rate, which represents the total computing power invested by the company. The higher the hash rate, the greater the probability of successfully mining Bitcoin.

Next, we will focus on sharing the business development of five mining companies, comparing them one by one.

Marathon Digital Holdings (MARA)

• Main business: The world's largest Bitcoin mining company with a market cap of $6.736 billion. Its core business is Bitcoin mining and holding. As a miner that both mines and purchases Bitcoin, this hybrid strategy provides operational flexibility, allowing it to buy large amounts when Bitcoin prices fall, thereby optimizing costs and maintaining overall competitiveness. Currently, $MARA Holdings(MARA.US)$ it holds 49,179 BTC, second only to the largest holder MSTR, making it the second-largest Bitcoin holder globally.

• Relative advantages: As the world's largest mining company, MARA leads in mining equipment, the number of miners, and mining efficiency. In Q1 2025, MARA's revenue grew by 30% year-over-year, and its Bitcoin holdings increased by 174%. The company's hash rate is 54.3 EH/s, which is at the industry-leading level.

• Technical analysis: According to the weekly chart, the current stock price of MARA is in an upward trend, with key resistance levels referenced at the previous high of $27.3, and short-term support at $16.7.

Riot Platforms (RIOT)

• Main business: Primarily engaged in Bitcoin mining and data center hosting and engineering, with a market cap of $4.437 billion. 80% of its revenue comes from Bitcoin mining. The company has also acquired another Bitcoin miner, Block Mining. Currently, $Riot Platforms(RIOT.US)$ It collectively holds 19,225 BTC, with 5,784 BTC acquired in December last year, actively participating in BTC reserves.

• Relative Strength: Riot Platforms' current hash rate has reached 33.7 EH/s, although it is lower than Marathon Digital, it has increased by 41% compared to the same period last year. After the Bitcoin halving in April last year, Riot's mining output was briefly affected but quickly recovered to pre-halving levels, even exceeding the same period last year by 12% in Q1 2025, with a production of 1,530 BTC.

• Technical Analysis: The technical trend for Riot is more optimistic. Referencing the medium- and long-term moving averages EMA12 and EMA50, the Candlestick is still in an upward trend. Short-term support can be referenced at the EMA50 moving average of $10.2, and resistance can be referenced at the previous high of $14.6.

Iris Energy (IREN)

• Main Business: Focused on Bitcoin mining, $IREN Ltd(IREN.US)$ it is a new company established in 2021, but it quickly gained market attention, especially due to its sustainable energy strategy for mining.

• Relative Strength: IREN's market cap is second only to Marathon Digital and Riot Platforms. It has a first-mover advantage in high-performance computing and has been consistently working to increase Bitcoin output and revenue by enhancing its hash rate, which has now reached 50 EH/s. In Q1 2025, Bitcoin production reached 1,514 BTC, with a year-over-year growth rate of 51%, making it the fastest-growing among the five mining stocks.

• Technical Analysis: From the stock price performance over the past year, IREN is the best performer among the five mining stocks. This rebound has broken through the March 2022 high, but the stock price has been consolidating in recent trading days. Referencing the Fibonacci retracement line, there is support around $15.5.

CleanSpark (CLSK)

• Main Business: Primarily engaged in Bitcoin mining, with almost all revenue coming from mining. The company has a market cap of $3.554 billion and currently holds approximately 12,608 BTC.

• Relative Strengths: $CleanSpark(CLSK.US)$ Its production and hash rate are second only to Marathon Digital, placing it among the top competitors. Additionally, the number of miners the company operates continues to increase, enhancing its total computing power and offsetting the impact of the halving. Production in the last two quarters has rebounded to pre-halving levels.

• Technical Analysis: CLSK has rebounded by 37.35% this year. The current stock price trend is similar to that of its peers. The short-term support level can be referenced at $12, and the resistance level can be referenced at the previous high of $16.20.

Hut 8 (HUT)

• Main Business: Focused on Bitcoin mining, hosting services, and high-performance computing services. $Hut 8(HUT.US)$ As one of the largest miners in North America, the company currently has 20 sites and holds approximately 10,264 BTC. The company has not significantly increased its holdings over the past six months, and its output has been gradually declining.

• Relative Strengths: HUT's current hash rate is approximately 9.3 EH/s, which is significantly lower than that of several peers. However, HUT has been actively building its energy infrastructure and announced a partnership with Bitmain last year for the development and upgrade of mining equipment, with an expected hash rate of 15 EH/s by the second quarter of 2025. In addition to its mining business, hosting and high-performance computing (HPC) services account for more than 50% of its revenue, serving as an extension and complement to the mining operations. Given that Bitcoin will eventually be fully mined, HUT's strategy of leveraging its existing computing equipment to diversify its business lines is beneficial for the company's future transformation.

• Technical Analysis: HUT's cumulative increase by 2025 is the worst among the miners, with a support level at $17.9 and a resistance level at $27.

Valuation

Comparing the cumulative quarterly performance data of the five companies up to Q1 2025, it can be seen that $IREN Ltd(IREN.US)$ has relatively strong revenue growth and gross margin, which is closely related to IREN's renewable energy mining strategy. By developing renewable energy mining sites, it can effectively reduce mining costs.

Among them, $MARA Holdings(MARA.US)$ has the worst gross margin performance, mainly due to a decrease in production caused by the halving event on the revenue side, and an increase in costs due to the global rise in hash rate.

The overall performance is relatively poor for $Hut 8(HUT.US)$ The core reason is still the halving event in April last year, the increase in network difficulty, and the rise in fixed costs due to the company's fleet upgrade, leading to an increase in mining costs. Currently, HUT spends $58,757 to mine one Bitcoin, whereas in Q1 of last year, it only cost $24,594.

Investment Summary

In summary, from the perspective of stock price trends, this year $比特币 (BTC.CC)$ the cumulative gain is 27%, but two out of the five mining stocks we observed have outperformed Bitcoin, and the overall performance of mining stocks has been better than in 2024.

This is because, in response to Bitcoin's fourth halving, many mining companies have improved their efficiency. The current mining output is gradually recovering to pre-halving levels. Additionally, most mining companies have adopted MSTR’s Bitcoin reserve strategy. As the price of Bitcoin continues to rise, the revenue generated from the increase in the coin price will be reflected in the earnings reports, thereby having a positive impact on the stock price.

Risk Warning

For investors, investing in Bitcoin mining stocks is also an indirect way to invest in Bitcoin, but the movements of the two are not entirely overlapping. Investing in mining stocks can be even more challenging than directly investing in Bitcoin, as it involves taking on additional risks. It is recommended to pay attention to the following points:

1. Impact of Bitcoin Halving: With Bitcoin rewards halving every four years, this will directly lead to a decrease in output and a sharp decline in revenue for mining companies, assuming costs remain constant.

2. Unsustainability of Bitcoin Mining: Given that the total supply of Bitcoin is fixed at 21 million, and as of July 2025, 19.89 million Bitcoins have already been mined, with the remaining amount expected to be fully mined by 2140, the business of Bitcoin mining stocks is unsustainable. Most Bitcoin mining stocks are only suitable as tools for short-term arbitrage.

3. Increasing Competition: Due to the limited supply of Bitcoin and the increasing difficulty, Bitcoin mining companies must continuously increase their computing power and find ways to reduce costs. Industry competition will only become more intense, and companies with weaker operational capabilities are likely to be eliminated in the competition.

Risk Disclosure: This content does not constitute a research report and is for reference only. It should not be used as the basis for any investment decision. The information provided herein is not a comprehensive description of the securities, markets, or developments mentioned. Although the sources of the information are believed to be reliable, the accuracy or completeness of the content is not guaranteed. Additionally, no assurance is given as to the accuracy of any statements, views, or forecasts provided in this document.