Anthony P⭕️wer
Anthony P⭕️wer 3 minutes reading from Bitcoin

How Does the #BTC Miner Value Mean?

1. How do you value a BTC miner?

Is Market Capitalisation (MCAP) a true indicator of value?

Another measure would be to look at the Enterprise Value (EV) of a company, which takes the MCAP and then considers the level of debt and cash and cash equivalents.

See thread👇

2/ We’ve seen the price of BTC fall by over 77% and share prices for BTC miners fall on average by 90%, from 52 week highs.

But it’s worth considering the amount of debt that needs to be serviced and the amount of available cash and equivalents to meet this requirement.

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3/

You can immediately see which of the companies are servicing large amounts of debt.

CORZ had over 1bn in debt as at June 30, and hold nearly 50m in cash and BTC as at the end of September, and although they have net assets of 416m, 266m of this is goodwill.

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4/

@DigihostTech on the other hand has no debt.

Their MCAP is currently 20.8m, and they have an EV of 11.8m.

Their net assets total 59m which highlights how much value you’re currently getting within you share price.

CLSK DMGI HUT IREN and RIOT also have

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5/

a combination of lower EV and net assets totalling more than the MCAP, showing good value metrics.

If you consider the EV divided by Net Assets.

It’s used for measuring the value of a company in comparison to its total assets and useful for companies in the same sector.

6/ in terms of valuation ranking…..

🥇 @DigihostTech

🥈 @irisenergyco

🥉 @CleanSpark_Inc

It should be noted that both IREN and CLSK deliver consistent good operational monthly mining updates and have both taken advantage of growing quickly through the bear market.

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7/

It’s finally worth considering the current value (cost) by PH/s.

Taking, the EV and dividing by the current PH/s will provide an indication of how much companies have effectively paid.

It may come as no surprise that DGHI, CLSK and IREN come out with the best value.

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8/

These metrics are good for research, but should never be taken in isolation, and are in no way a recommendation for buying stocks.

Always carry out your due diligence before investing. 👍

This post is based on this twitter thread.

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