The cryptocurrency mining stocks on our list appear to be unfairly punished by the sector selloff and could represent solid value should prices rally
SmallCapPower | March 28, 2018: Cryptocurrencies remain in flux, with Bitcoin shifting between US$7,500 and US$11,500 over the past two months. Public interest in Blockchain and cryptocurrencies has also declined, with Bitcoin volumes falling by 41% since February. We have introduced a new metric called Price/MW, derived from the company’s market cap divided by its megawatts of cryptocurrency mining. This metric could show which miners are most undervalued on a near-term basis. That being said, the cryptocurrency mining stocks on our list appear to be unfairly punished by the sector selloff and could represent solid value should prices rally.
CryptoGlobal Corp. (TSXV:CPTO) – $0.49
Cryptocurrency Mining
CryptoGlobal is a Canadian cryptocurrency miner operating in Ontario and Quebec. The Company currently operates 7,700 rigs and plans to expand to 10,000 by the end of 2018. CryptoGlobal plans to mine four of the top 10 cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, and Dash. On March 1, 2018, the Company announced the acquisition of Blockchain Dynamics, a cryptocurrency services platform, for $28M.
- Market Cap: $68.6 Million
- 1 Week Total Return: -31.0%
- 1 Month Total Return: -63.2%
- YTD Total Return: -37.8%
- End of 2018 Cryptocurrency Mining: 75 MW
- End of 2018 Price/MW: $ 0.9 Million
Hut 8 Mining Corp. (TSXV:HUT) – $3.31
Cryptocurrency Mining
Hut 8 is a Canada-based cryptocurrency miner. Hut 8 wants to become the world’s largest 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-V 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: $272.7 Million
- 1 Week Total Return: -15.1%
- 1 Month Total Return: 25.4%
- YTD Total Return: 25.4%
- End of 2018 Cryptocurrency Mining: 220 MW
- End of 2018 Price/MW: $ 1.2 Million
HashChain Technology Inc. (TSXV:KASH) – $0.25
Cryptocurrency Mining
HashChain is a Canadian Blockchain company. The Company currently operates 877 cryptocurrency mining rigs in Vancouver and plans to expand to 46,600 by 2020. HashChain expects to mine primarily Bitcoin and Dash. On January 30, the Company announced the acquisition of Node40, a cryptocurrency accounting technology and masternode hosting company for US$8M.
- Market Cap: $26.1 Million
- 1 Week Total Return: -20.6%
- 1 Month Total Return: -46.2%
- YTD Total Return: -84.1%
- End of 2018 Cryptocurrency Mining: 20 MW
- End of 2018 Price/MW: $ 1.3 Million
HIVE Blockchain Technologies Ltd. (TSXV:HIVE) – $1.49
Cryptocurrency Mining
HIVE Blockchain Technologies acts as a Blockchain infrastructure company that operates 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: $473.2 Million
- 1 Week Total Return: 8.8%
- 1 Month Total Return: -19.0%
- YTD Total Return: -56.6%
- End of 2018 Cryptocurrency Mining: 44 MW
- End of 2018 Price/MW: $ 10.7 Million
Neptune Dash Technologies Corp. (TSXV:DASH) – $0.27
Cryptocurrency Mining
Neptune Dash is a Canada-based cryptocurrency miner. The Company operates a total of 18 Dash masternodes, mining an average of 6.8 Dash per month. Dash masternodes do not require the same degree of hardware that most cryptocurrency miners do. The Company aims to continue its focus on Dash and is unlikely to delve into other cryptocurrencies.
- Market Cap: $21.7 Million
- 1 Week Total Return: -10.0%
- 1 Month Total Return: -35.7%
- YTD Total Return: -55.0%
- End of 2018 Cryptocurrency Mining: N/A
- End of 2018 Price/MW: N/A
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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