9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Arcane Research analysts have proposed an industry metric for benchmarking public mining companies. It turned out that Marathon Digital’s shares were the most appreciated shares. Experts called the
Arcane Research analysts have proposed an industry metric for benchmarking public mining companies. It turned out that Marathon Digital’s shares were the most appreciated shares.
Experts called the indicator of market capitalization to business hashrate ratio, a simplified analogue of the widely used investment attractiveness metric P / E – share price to annual profit.
As a rule, it is believed that a high value of the indicator indicates that the company is overvalued.
According to experts, Marathon’s high appreciation by investors is linked to the company’s ambitious plans to increase the hash rate. The latter is supported by large orders of mining devices.
However, the company is seriously lagging behind the declared speed of equipment delivery. According to the schedule, Marathon computing power by April 2022 should be 10 EH / s, and in fact, analysts have stated that it has reached 3.9 EH / s.
The mining company estimated the workload at 45 days and confirmed its plans to increase the hash rate to 23.3 EH/s by early 2023. Experts pointed out that the company needs to significantly accelerate the distribution of purchased equipment, which is currently idle.
“While the marathon is the best example, it is not the only marathon whose price is based on huge growth prospects. Investors in the mining industry should be cautious about using “potential future hash power” as the basis for their valuations, analysts said.
They noted that the new metric also indicates that the market expects significant growth for Riot Blockchain. However, unlike Marathon, the company has not only ASIC miners, but also a large infrastructure facility.
Arcane Research reminded investors that when evaluating mining companies, the cost of electricity, which is the main cost item, should be considered. For example, Bitfarms might be considered impaired, but the firm has the highest rate. Marathon and Riot pay roughly the market average.
Recall that according to Arcane Research, the share of publicly traded mining companies in the bitcoin hashrate reaches 19%.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
