Significant differences in valuation of bitcoin mining stocks

Mining stocks continue plummeting, but we can still see significant discrepancies in their valuations.

Mining stocks continue plummeting, but we can still see significant discrepancies in their valuations.

We can compare the valuations of mining companies using industry metrics like Price/Hashrate or general metrics like Price/Sales (P/S). Most publicly listed miners have similar cost levels. Therefore, sales is a valid proxy for earnings, which makes P/S an excellent metric for the industry.

A miner’s hashrate is their capacity to mine bitcoin. Therefore, Price/Hashrate considers future earnings, and we can view it as a simplified version of the Forward Price/Earnings ratio.

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