Six metrics to assess public miners in earnings season
Breaking down the research fundamentals
As the earnings season approaches, here is a new post by TheMinerMag looking into unique metrics in bitcoin mining for assessing individual operations and the methodology behind such data analysis.
While commonly used financial metrics, such as the gross margin, P/E, D/E, and current ratios are equally important in assessing public mining stocks, there are fundamentals unique in bitcoin mining such as Realized Hashrate, Realization Rate, Price-to-Hash ratio, Net-Debt-to-Hash ratio, the Cost of Bitcoin Production, and the All-in Cost of Mining.
Although there is no best metric in determining whether a mining stock is over or under-evaluated, the purpose of having a mix of variances is to provide a more holistic view into the health of a publicly listed mining operation, especially in a bearish market.
Speaking of the bear market, it appears that public mining companies have been consistently selling a tad bit more bitcoin than what they mined each month since May 2022. The liquidation-over-production ratio was still above 100% in February, per the data compiled by TheMinerMag.
Regulation news
U.S. Treasury Department Proposes 30% Excise Tax on Crypto Mining Firms - CoinDesk
Financial news
Core Scientific Shareholders to Get Official Voice in Bankruptcy Case - The Wall Street Journal
Canaan Reveals Tough Fourth Quarter With Revenue Down 60% - The Block
Hut 8 Talks Operational Issues and U.S. Bitcoin Corp. Merger in Earnings Call - CoinDesk
Marathon Digital Terminates Credit Facility With Crypto Bank Silvergate - CoinDesk
Hardware & Infrastructure
Applied Digital Energizes Facility in Ellendale, North Dakota - Link
A New Nuclear Reactor in the U.S. Starts Up, the First in Nearly Seven Years - CNBC
Jack Dorsey's Block Reveals Plans for Bitcoin 'Mining Development Kit' - Decrypt
ePIC Introduces the ePIC BlockMiner Based on Intel Blockscale Chip - Link
TeraWulf Starts Nuclear-Powered Bitcoin Mining With Nearly 8,000 Rigs at Nautilus Facility - CoinDesk
Corporate news
Canadian Crypto Miner Pow.re Lands 100 MW Contract in Paraguay - CoinDesk
Crypto Exec's Claim He Invented Mining Patent Fails At Trial - Law360
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