Despite weak cryptocurrency prices, the cryptocurrency mining stocks we’ve identified aim to add further mining rigs to their facilities
SmallCapPower | May 30, 2018: Although the price of Bitcoin reached nearly US$10,000 in early May, it has since declined to US$7,500, with similar declines in many of the Top 100 cryptos. However, prices spiked Tuesday morning, with the Top 10 cryptocurrencies increasing an average of 6.8%. The four cryptocurrency mining stocks on our list today continue to experience stock-price weakness, potentially making them a better deal than during the boom times of late last year. We compare the companies using their current and future MW of cryptocurrency mining, relative to their enterprise value.
HIVE Blockchain Technologies Ltd. (TSXV:HIVE) – $1.15
HIVE Blockchain Technologies is a cryptocurrency miner, operating a mining facility located in Iceland. The Company’s facility was completed in May 2017 and has the capability to mine a variety of cryptocurrencies, including Ethereum and Zcash. HIVE opened an Ethereum mining facility in Sweden in January and plans to expand it throughout 2018, expected to reach 44.2 MW in September.
- Market Cap: $379.2 Million
- 1 Month Total Return: -27.2%
- YTD Total Return: -66.5%
- Current MW Capacity: 24.2 MW
- End of 2018 MW Capacity: 44.2 MW
- EV/Current MW Capacity: $10,244,828/MW
- EV/End of 2018 MW Capacity: $5,609,159/MW
Hut 8 Mining Corp. (TSXV:HUT) – $3.99
Hut 8 Mining is a Canada-based cryptocurrency miner. Hut 8 wants to be the biggest cryptocurrency miner, by using its BlockBox AC manufactured in partnership with Bitfury to mine Bitcoins using conventional datacenter infrastructure. The Company listed on the TSX Venture on March 6 and plans to operate 24 MW of Bitcoin mining by June, 50 MW by September, and 200 MW by the end of 2018, as well as 20 MW of other cryptocurrencies.
- Market Cap: $318.2 Million
- 1 Month Total Return: -10.3%
- YTD Total Return: 51.2%
- Current MW Capacity: 18.7 MW
- End of 2018 MW Capacity: 62.7 MW
- EV/Current MW Capacity: $15,883,822/MW
- EV/End of 2018 MW Capacity: $4,737,280/MW
Datametrex AI Ltd. (TSXV:DM) – $0.10
Software & Cryptocurrency Mining
Datametrex AI provides cloud-based data solutions to Big Data clients in the retail sector. The Company announced plans to incorporate blockchain technology into its current software to further authenticate and validate data collected. Its Ronin subsidiary has a cryptocurrency mining facility in Quebec and a 150MW facility in China.
- Market Cap: $28.0 Million
- 1 Month Total Return: -32.1%
- YTD Total Return: -72.9%
- Current MW Capacity: 0.0 MW
- End of 2018 MW Capacity: 100.0 MW
- EV/Current MW Capacity: N/A
- EV/End of 2018 MW Capacity: $166,932/MW
HashChain Technology Inc. (TSXV:KASH) – $0.19
HashChain is a Canada-based blockchain company that currently operates 977 cryptocurrency mining rigs in Vancouver and plans to operate 48,600 by 2020. HashChain expects to mine primarily Bitcoin, Dash, and Ethereum. On May 22, the Company acquired TG12, a cryptocurrency miner, from Block One Capital (TSXV:BLOK) for $3.1M in shares.
- Market Cap: $25.8 Million
- 1 Month Total Return: -43.3%
- YTD Total Return: -87.9%
- Current MW Capacity: 7.2 MW
- End of 2018 MW Capacity: 21.5 MW
- EV/Current MW Capacity: $2,620,200/MW
- EV/End of 2018 MW Capacity: $917,070/MW
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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