RE:opinionsHi RatSnake, bitcoin miners are companies, classic investing theory dictates that investors seek out undervalued companies to buy, and sell overvalued companies. In its simplest form, value is a function of earnings, and potential earnings growth, relative to valuation (market capitalization), see earnings yield or P/E ratio, and can be seen to be absolute or relative. If you had the choice between two companies both valued at $1bn, but one made twice as much money as the other, I think you'd choose to buy the cheaper one right? Equally if the cheaper one was only making $1m, you might think that it was overvalued in an absolute sense on 1000X earnings, unless those earnings were forecast to grow by hundreds of percent compound over the next years.
All bitcoin miners are essentially doing the same thing, mining bitcoin, but depending on processing power and efficiency, they produce different quantities of bitcoin at different profit margins. Some also hold large bitcoin reserves, an asset which has been appreciating - with value of assets another determinant of company value.
Bitfarms is in my opinion not expensive in absolute terms (say potentially 10x earnings), or relative to peers in the sector (say perhaps 50% discount), particularly when you take into account BITF's potential growth in network hashrate share. By comparison, many traditional copper miners are cheaper though, but does the copper price have the appreciation potential of bitcoin, maybe, maybe not, and are those companies able to increase their production capacity by +50% in the short term, probably not.
You pays your money and you takes your chances. IF (big if) bitcoin does rocket to the 6 figure price targets that some people are throwing around, then this company will be worth multiples of today's valuation, based on earnings of several hundreds of millions of dollars.
Buying other bitcoin miners is not really diversification, other than individual company specific risk (e.g. data center burns down), as they are all still exposed to the same major risk - bitcoin crashing. It all depends on your individual risk appetite/tolerance.
Company valuation is a function of the supply and demand for its shares, driven by market sentiment - if investors think bitcoin is going up, and this company will do better in the future, then demand for the stock increases, as does the valuation multiple.
All pretty basic stuff, but I thought I'd answer your question.
TL;DR - I like BITF because it is cheap, profitable, and has great growth potential.