The Research Terminal, the world’s leading provider of premium databases as well as academic-grade research on blockchains and other digital assets recently added an additional report to its library of. The most recent report focuses on one particular set of players within the Bitcoin ( BTC) mining business. The report was published by the crypto consulting company Crypto Oxygen, the report exposes the current state of crypto mining companies that are publicly traded companies , which control around 17percent of overall hash rate of the Bitcoin network.
The mining of crypto coins is an incredibly fast-growing and growing sector. In January the US-based company called Core Scientific Core Scientific went public via an acquisition company with special purpose (SPAC) merging, which made it the biggest openly traded mining firm in terms of revenue and hash rate. Core Scientific’s hash rates lead all other public companies, in the market with 8.3 Exahashes Per Second (Eh/s) and Core Scientific generated 5 769 BTC in 2021, which equates to approximately $545 million in revenues. The second and third place on revenue terms are Riot Blockchain and Hive Blockchain Technologies which earned $195 million and $215 million, respectively.
Financial, operational and strategic breakdown
Revenue and hash rate are only a few methods to differentiate between firms however they aren’t the complete picture as some companies have revenue models distinct from their mining activities. The report explains these important statistics and provides more in-depth comparisons, covering each company’s strategic operational, financial and strategic performance.
The complete report, including infographics and charts from Research Terminal
The report, for instance, examines the operations of each company based on their current rates of hash for each U.S. dollar invested. In this way, it is easy to determine which one has the highest investment return for investors. The company that is most valuable, in this instance will be Stronghold Digital Mining with 46.56 gigahashes per second (GH/s) to outshine the competition.
Apart from that the report also gives an overview of the operations of each firm, including the operations-specific key performance indicators (KPIs,) business model and data center locations. BTC holdings, and other relevant details.
In particular, big players like Marathon are able to run their operations with a minimal budget and are entirely hosted by third party companies, whereas others such as Stronghold have assets, as well as the entire value chain comprising the electricity infrastructure.
Instead of relying only on public reports and financial reports, Crypto Oxygen has also added a survey to incorporate immediate feedback directly from firms in its analysis.
One of the major concerns with Bitcoin mining, generally is related to Environment, Social and Governance or ESG. Sustainability is always a key discussion point regarding the mining industry of crypto, and publicly traded companies are the subject of greater scrutiny. But, it appears that there will be a strong emphasis among companies that are in the report on how to reduce the carbon footprint of their operations, despite different methods.
From the twelve firms, eight are carbon-neutral or have environmentally friendly operations. Bitfarms, Hive, Iris Energy and Argo are four businesses that depend entirely upon renewable sources of energy. Northern Data, Core Scientific and Greenidge Generation use offset credits to lower the carbon footprint of their operations. Marathon Digital Holdings and Hut 8 Mining are also making use of carbon offset credits and are aiming to become carbon-neutral by the end of 2022. 67 percent of Bit Digital’s power source comes from renewable energy.
The investment in mining companies that mine crypto gives investors exposure to the cryptocurrency market, but not as specific like holding Bitcoin. The connection between mining company’s stock prices and BTC’s price BTC is emphasized in the report. The latest decrease in the price of BTC is a clear example of that. The report also shows that the more important BTC holdings can be an important driver of the current downturn.
But, the mining companies’ share prices sunk significantly. The 46-page report provides an in-depth analysis of every public mining company’s performance, and provides a thorough comparison of each to provide more insight to the companies that are involved in the growing sector and to the market overall. If you’re interested in reading the entire report, you can download it by going to Research Terminal.
This article is intended for information only and does not constitute the advice of an advisor on investing, nor an analysis of investments or an invitation to purchase the financial instruments or trade them. Particularly, this document is not an alternative to individual investment or any other advice.