Daniel K. Weiskopf, III is a Portfolio Manager at Tidal Financial Group.
Since around 2017, our team has been researching the infrastructure opportunities available to investors in the public markets. I am pleased to see close-to-record highs in daily revenues as we approach the fourth halving, predicted around April 19. Pleased because it reflects the business success of an industry that presently is running close to a $26.1 billion run rate .
Despite the optimism expressed by investors, we can understand why miners and investors are facing the halving with trepidation. We would also like to point out that 1st quarter profitable financials results expected by some of the miners seem more than discounted at current levels. Many mining stocks could be looking at forward-EV/EBITDA multiples in the very low single digits versus 2024 and 2025.
Of course, any single digit multiple assumed on valuation metrics must assume a Bitcoin price of between $70,000 to $100,000 which we would argue is reasonable given the current momentum in the price of Bitcoin. Conversely, given that these are technology companies, we would have to admit that execution risk at scale has proven a high hurdle to achieve.
As such, they have drawn a competitive advantage from an increase in trading activity, ample financial liquidity and or a war chest to capitalize on acquisition opportunities. People who are disappointed by the recent failure of the mining stocks to keep up with the price of bitcoin are missing the fact that this correlation is sustainable but frequently behaves like a coiled spring> The question is timing and the near term direction of bitcoin at $60K or $100K. All bets are off at $500K.
The issue is that their Bitcoin mining segment may not be their sole source of growth. HPC-AI is a compelling business model and in demand. AI computing, of course, is in high demand these days. AI compute centers are more predictable as a business than self-mining. But of course it also has less optionality than that $500,000 bitcoin price.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Once unprofitable BTC miners are turning their machines back on — AnalystPreviously unprofitable Bitcoin miners may now be coming back online amid Bitcoin’s recent price rise.
Read more »
Bitcoin & Bitcoin Cash Among Top Crypto Gainers as Crypto Prices Pump: What About Green Bitcoin?Crypto Blog
Read more »
Bitcoin Cash & Bitcoin SV Pumping as Bitcoin Minetrix Nears Exchange ListingCrypto Blog
Read more »
Bitcoin Halving 2024: Will Crypto Miners See Lower Profits?Bitcoin Halving 2024: Will Crypto Miners See Lower Profits?
Read more »
Bernstein raises year-end bitcoin price target to $90,000, expects ‘mild’ halving impact on minersBernstein has revised its 2024 price target for bitcoin to $90,000 from $80,000 and continues to see miners as the best equity proxy.
Read more »
Bitcoin Miners’ Reserves Plummet to April 2021 Lows Amid Profit-Taking and BTC Price DeclineCrypto Blog
Read more »