Bac0n wrote:
The Bac0n Diaries Part #19
Date: 21/04/2021
Closing Share Prices:
HIVE - $3.86 -4%
RIOT - $41.31 (usd) +7%
HUT - $7.03 -1%
BITF - $4.51 +6%
Comments:
BITF came back today making up gains, unsurprising. HIVE suffered the biggest losses, and is still overvalued at its current price.
I want to get a little more into the technical details regarding the last 6 months for crypto mining stocks.
Percentage of gains:
The below chart shows % of gains for all the major miners, now this is one of the HIVE cultists favourite metric that they like to cite.
"HIVE HAS GONE UP 2000%", they like to pretend HIVE has the highest % of gains, but heres the facts.
BITF % of gains - 2.15K%
HIVE % of gains - 2.08K%
unsurprisingly BITF is leading in gains over the last 6 months, as I called back in my Nov post.
This trend will continue as BITF scales its operations and gets an uplisting, while HIVE continues desperately to try and move away from ETH mining, before the London Fork.
Price-to-sales ratio:
The 2nd chart I would like to bring to the boards attention is the price-to-sales ratio. this shows not only the current hash rate, But the annual Bitcoin production rate.
once again BITF is among the leaders, while HIVE is near the bottom of the spectrum. Now this chart doesnt show future hashrates.
This is the hashrate TODAY! RIGHT NOW! so not by end of 2022 (when Mara and BITF will expand massively!) but right now Bit Digital and BITF are the leaders. This is what value is based on, hashrate and average cost of mining a Bitcoin.
multiples of price to sales:
lastly lets talk about sales multiples.
quote:
"Bitfarms Limited (OTCPK:BFARF) and Digihost Technology Inc (OTCQB:HSSHF) benefit from much more attractive jurisdictions with operations based out of Canada. Both stocks are trading at a 3.5x price to sales"
"Hive Blockchain Technologies Inc (OTCQX:HVBTF) and RIOT each trade at a current price to sales multiple of 57x and 37x"
source:
https://seekingalpha.com/article/4417795-sizing-up-12-bitcoin-mining-stocks
So these are some pretty shocking valuations.. for BITF to be trading at 3.5x while HIVE is trading at 57x ...tells an important story.
the same story I have been talking about the last several months.. HIVE IS OVERVALUED. BITF IS UNDERVALUED. simple.
HIVE having a market cap as high as it does, is insanity.. 350 MILLION shares oustanding at the current share price below $4 is still too high.
HIVE is out of runway, BITF is just getting started, the performance of these 2 companies in the last 6 months tells the story better than I ever could.
LISTEN TO THE NUMBERS, NOT THE CHILDREN SPEWING NONSENSE
The above post is ACTUAL DUE DILIGENCE, actual numbers and figures that can be verified by any reader.
Saying "HIVE TO THE MOON" isnt due diligence,
saying "FRANK SAID X Y or Z" also isnt due diligence.
Saying "im buying more" isnt a bullish metric, and also is likely a lie based on how often the same people keep saying it.
make FACT based investments
Sign Off:
"I don't suffer fools, and I like to see fools suffer"
-Florence King
-Bac0n
this is not financial advice, do your own due diligence