Most of us know more about Bitcoin itself as a crypto and a stock, but what about the companies that actually mine Bitcoin?
I came across this new idea from a platform called CryptoQuant which made me think about the mining companies as also a valuable investment in the stock market. They've built a system that can track how much money these Bitcoin mining companies make. Its a simple tool that only Blockchain can make possible. Instead of just relying on what the companies tell us in their financial reports, they simply follow the Bitcoin addresses these companies use to see how much Bitcoin they’re actually producing.
Finally a more honest way of presenting data that can never be manipulated by insiders or third parties. I believe this would be another solid example to make the world see how Blockchain can promote accountability at its best.
On top of that they even created something called the MCAR ratio (Market Cap to Annualized Daily Revenues), which to my understanding of what I learned is like checking how much a company is worth compared to how much money it makes in a year. In that case, if a company’s value is way higher than its earnings, it might be overpriced, and if it’s lower, it could be a hidden gem that needs to be looked at by investors.
Well some companies like WULF and MARA have already been examined by this system and seemed super expensive for what they actually bring in.
Please note that this isn't financial advice to pull out or invest in any company, it's just a metric. Who knows, those overpriced companies could still thrive on "Buy the rumor sell the news" or any other means and tactics.
Okay, now that Ive gotten that out of the way, according to what I learned, a company like IREN make a lot of Bitcoin but aren’t getting much attention in the market. Again this is showing how well this system has been able to pick up an opportunity within the market. The article didn't state, but I'm pretty sure there might be an AI system making this process seamless I think.