The on-chain intelligence platform CryptoQuant has unveiled a framework for monitoring the revenues of leading public Bitcoin mining companies. This methodology tells whether the companies are undervalued or overvalued in real time.<\/p>\n
CryptoQuant revealed in its latest weekly report<\/a> that the framework tracks miners\u2019 addresses on the Bitcoin blockchain and their BTC production. This enables analysts to derive revenue metrics not disclosed via traditional corporate procedures.<\/p>\n The Bitcoin mining companies monitored through CryptoQuant\u2019s framework include Marathon Digital (MARA), Riot Blockchain (RIOT), and Core Scientific (CORZ). The analytics firm also tracked the revenue metrics of Hive Digital Technologies (HIVE), CleanSpark (CLSK), Bitfarms (BITF), TeraWulf Inc. (WULF), Cipher Mining (CIPHER), and IREN (IREN), formerly Iris Energy.<\/p>\n According to the report, CryptoQuant analysts estimated daily mining revenues directly from block rewards and transaction fees by tracking miner addresses. The revenue estimates are annualized and compared to the mining firms\u2019 market cap. From there, the analysts offer a forward-looking valuation framework similar to a price-to-sales ratio. CryptoQuant calls this the Market Cap to Annualized Daily Revenues (MCAR) ratio.<\/p>\n The MCAR ratio tells whether a miner\u2019s underlying Bitcoin production<\/a> or USD-denominated revenue supports the company\u2019s valuation.<\/p>\n \u201cBy comparing each company\u2019s market capitalization to its annualized revenue on a daily basis, investors can identify which firms are potentially overvalued or undervalued. This enables more informed portfolio allocation\u2014favoring companies whose market valuations lag behind their revenue generation while reducing exposure to those trading at excessive premiums,\u201d CryptoQuant stated.<\/p>\n From CryptoQuant\u2019s analysis, the MCAR ratios for WULF, MARA, RIOT, CLSK, HIVE, and IREN are 5.1, 4.4, 3.7, 3.3, 1.9, and 1.8, respectively. These numbers reflect how much investors pay for every dollar of estimated annual revenue in real time.<\/p>\n WULF and MARA have the highest valuation multiples, so CryptoQuant believes they are priced at a significant premium compared to the other firms. RIOT, CLSK, and HIVE are not as overvalued, so their market valuations hover within the same range as their revenue generation<\/a>.<\/p>\n CryptoQuant found that IREN has the lowest valuation despite posting strong growth in its BTC production. This suggests that the company is likely undervalued by the market. On the brighter side, the firm faces a potential upside if it becomes repriced in the market.<\/p>\n \u201cThe current valuation dispersion opens opportunities for relative value strategies by identifying firms like IREN that may be lagging in market recognition despite solid operational performance,\u201d the analytics firm added.<\/p>\n The post Are Bitcoin Mining Stocks Mispriced? Here\u2019s What On-Chain Data Is Telling Investors<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The on-chain intelligence platform CryptoQuant has unveiled a framework for monitoring the revenues of leading public Bitcoin mining companies. This methodology tells whether the companies are undervalued or overvalued in real time. CryptoQuant revealed in its latest weekly report that the framework tracks miners\u2019 addresses on the Bitcoin blockchain and their BTC production. This enables […]<\/p>\n","protected":false},"author":0,"featured_media":67120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-67119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/67119"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67119"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/67119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/67120"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Valuation Methodology<\/h2>\n
WULF and MARA Valued at Relative Premiums<\/h2>\n