Let's talk about the value of money in crypto mining. It's nearing the end of the year 2020, and I think this year deserves closure from the investor's perspective of view in the field of publicly-traded cryptocurrency mining companies.
I wrote a story of publicly-traded cryptocurrency mining companies on September 11th. A blog post about publicly-traded cryptocurrency mining companies. Since then, the price of Bitcoin has risen from $10300 to a new all-time high of $24180. If I purchased Bitcoin then, I would have a nice 135% profit for my money. I didn't buy Bitcoin, but instead, I shopped Argo Blockchain stocks. The stock has risen from 5.50 GBX to 17.70 GBX, making an even better 222% profit.
Is the company now overvalued? No, it still is very far from being overpriced. It has announced an additional 430 PH/s mining power that is operational in February. That raises the total Bitcoin mining power to 1075 PH/s. With a current 70 million USD market cap, the price per 1 TH/s of Bitcoin mining power is 62.25$. It is still comparable to other companies stat in my September review. And of course, other stocks have risen too. Rising mining profitability is moved to ASIC mining hardware prices.
Here is a link to the Align Analyst Research analysis report about Argo. Especially full document is excellent. The conservative target price for Argo stock is 21.14 GBX. Quite interesting is also the possibility that Argo would start to pay dividends.
I think that Argo's stock performed relatively poorly. There is still plenty of room for the nice upswing. If Argo's stock is valued to the same levels as other stocks from my previous post, inventory can be 3-5 times its current level. And of course, if Bitcoin continues, it rallies up, all those stocks will rally up also.
I don't believe that Bitcoin stays at the level where it is now. I am very bullish on Bitcoin in the medium term 1-2 years. Why? After PayPal released their crypto services, they alone are buying more than all of the newly mined Bitcoins each month. Grayscale has bought even more than PayPal, about twice more than mining can produce.
MicroStrategy JPMorgan's "Flows & Liquidity" report says that institutions are piling into bitcoin at a more vigorous pace this quarter than they were in Q3. I also think that FED and other central banks' loose monetary policy will increase Bitcoin demand because liquidity flows into all kinds of assets. And, of course, mainstream media started to talk about cryptocurrencies. FOMO is coming :-)
I also found there is a new publicly traded player in the field. Bit Digital launched its BTC mining business in February 2020 and quickly ramped up 1,250 PH/s in power by October.
Ticker symbol: BTBT
Market capital: 272M USD
with current mining power and market cap price for 1 TH/s mining power is 120.83
My initial investment in Argo Blockchain was the weakest choice, and If you think that I would have invested in any other of these companies in the list, I would have done much better than Argo.) Nevertheless, these numbers below show to you that I should sell all the others Except Argo Blockchain today.
The most expensive of the list, Marathon Patent Group price is now at the level with that price of 1TH there, you can buy 16TH worth of perpetual contracts from OXBTC.
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See you around & Happy New Year 2021
CryptoGandalf