Canaan vs Hut 8 Mining: Best Cryptocurrency stock to Buy Now!

Take a look here to devise the best cryptocurrency stock to buy now between Canaan and Hut 8 Mining

All eyes are on cryptocurrencies' rises and fall as their popularity grows and investor interest continues to expand. According to the Cryptocurrency Market 2022 report, published by Research and Markets, the global cryptocurrency market was worth US$1.78 trillion in 2021. The market is projected to grow at a compound annual growth rate of 58.4% from 2021 to 2027 and is expected to reach US$32.42 trillion by the end of the forecasted period. To devise the best cryptocurrency stock to buy now, here is a comparative analysis between Canaan and Hut 8 Mining- the top two crypto mining companies.

Bitcoin mining has changed dramatically over the past few years. These days, companies such as Canaan design high-powered, application-specific integrated circuit (ASIC) machines specifically for the purpose of brute force guessing the network's correct hash (passcode). Canaan's next-generation Avalon ASICs can make tens of trillions of guesses every second as to the correct hash to validate blocks on the Bitcoin network, which is millions of times more powerful than AMD and Nvidia's latest graphics processing units (GPUs) for this hyper-specific purpose. Sales have been skyrocketing for some time due to the device's affordability and relatively low energy consumption — meaning greater profits for miners. Its current crypto stock price is US$3.52, a 4.14% up from the previous close.

Speaking of miners, one of the most popular Bitcoin mining stocks is Hut 8 Mining. The company, based in Canada, commands a sizable minority stake in the overall Bitcoin network, generating solid cash flows compared to revenue. Instead of selling the Bitcoins it mines on the market, Hut 8 Mining maximizes returns for shareholders by lending them out and farming yields, leading to compounded returns. Furthermore, investors can be assured that the company won't be embroiled in environmental concerns regarding the practice. Hut 8 Mining uses a mix of wind, solar, and natural gas sources for its electricity with decade-long leases, ensuring the sustainability of its operations. Its current crypto stock price is US$2.23, a 5.19% up from the previous close.