![]() ![]() ![]() We acknowledge that this ratio alone is not dispositive. Another factor is each miner’s electricity costs. On this basis, Bitfarms looks to be the most attractively valued Bitcoin miner of the four. OPERATING AND FINANCIAL DATA OF SELECTED BITCOIN MINERSīy this measure, Bitfarms is the only one of the four to be valued at an EV-to-computing power ratio below that implied in the Cleansparks-ATL transaction. In contrast, Hut 8, Riot Blockchain and MGT Capital Investments each currently trade at premium EV-to-PH/s ratios. (in Millions of US Dollars, Except Hashrate) In the table below, we calculate the ratios of the EV per PH/s of computing power of four well-known publicly traded Bitcoin miners. So, Cleanspark’s takeover price of ATL equated to a ratio of just over US$102,000 per PH/s of computing power (US$19.4 million divided by 190 PH/s). A miner which has a total of 1 PH/s computing capacity can create one quadrillion hashes per second. In turn, the speed at which a miner’s suite of computers can reach the answer is termed the hash rate. Bitcoin miners solve extremely complex math problems the answer to which is a long string of numbers, called a hash. ATL’s mining computers had a combined hash rate of 190 Petahash per second (PH/s). ![]() In our view, the Cleanspark-ATL transaction may more appropriately be valued on a different basis. Moreover, revenues have trended down this year in the aftermath of the May 2020 Bitcoin halving event. Miners have frequently displayed negative EBITDA results, as they are in early stages of growth. (TSX: HUT)has been challenging to do by traditional measures, such as enterprise value (EV)-to-EBITDA or EV-to-revenue ratios. Last week, Cleanspark (NASDAQ: CLSK), a publicly listed microgrid energy software company, acquired the private Bitcoin miner ATL Data Centers, LLC in a share-for-share exchange valued at US$19.4 million. While a fairly modest in dollar amount, we consider the transaction to be quite meaningful because it represents an objective data point for how investors can value Bitcoin miners. ![]()
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