NUGGETS OF ALPHA
The hash rate expansion rate is high, which is pressuring the miners
When miner flows are negative, they are selling more coins than they are mining
Dilution happens in crypto and stocks, which can be a kiss of death for investors
MSTR serves as a BTC proxy and diluted its stock by 28.24% over the last year
Miners are by far some of the hardest companies to analyze because there are so many dimensions:
Opaque financial reporting
Variable operating costs
Electricity costs
Technological obsolescence
HODL vs distribution
Debt
Hash rate
Age of the rigs
Cost of the rigs
Stock dilution
The efficiency of production
and so much more
We will use over 8,000 data points and 26 ratios to analyze the top miners today. It is important to note that no two miners are alike, and the variables affecting their production capabilities are constantly changing.
There is money to be made in miners if you can time it right. I recommend that you use this input as a tool in an elimination selection process and identify what is most important to you as an investor.
Here is a list of the usual suspects in the Bitcoin mining space. The two largest by market cap are RIOT and MARA.
*CORZQ is in bankruptcy.
The results are mixed over the last month for miners despite the strength of Bitcoin. We must remember that markets can be irrational over the short term.
In last month's analyses, Cipher Mining finished second, so it is interesting to see it reflected in stock performance.
In the IA Bitcoin Top & Bottom Model, the blue line indicates the demarcation between the Bear and Bull markets. We are well outside the bear zone and moving rapidly forward in a bull market ahead of schedule.
The hashrate is clobbering the miners as the network's security keeps going up and to the right. This hash rate expansion rate is high, which is pressuring the miners and making it very expensive to compete.
When miner flows are negative,
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