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Crypto Potato 2025-05-17 18:22:25

Are Bitcoin Mining Stocks Mispriced? Here’s What On-Chain Data Is Telling Investors

The on-chain intelligence platform CryptoQuant has unveiled a framework for monitoring the revenues of leading public Bitcoin mining companies. This methodology tells whether the companies are undervalued or overvalued in real time. CryptoQuant revealed in its latest weekly report that the framework tracks miners’ addresses on the Bitcoin blockchain and their BTC production. This enables analysts to derive revenue metrics not disclosed via traditional corporate procedures. The Valuation Methodology The Bitcoin mining companies monitored through CryptoQuant’s framework include Marathon Digital (MARA), Riot Blockchain (RIOT), and Core Scientific (CORZ). The analytics firm also tracked the revenue metrics of Hive Digital Technologies (HIVE), CleanSpark (CLSK), Bitfarms (BITF), TeraWulf Inc. (WULF), Cipher Mining (CIPHER), and IREN (IREN), formerly Iris Energy. According to the report, CryptoQuant analysts estimated daily mining revenues directly from block rewards and transaction fees by tracking miner addresses. The revenue estimates are annualized and compared to the mining firms’ market cap. From there, the analysts offer a forward-looking valuation framework similar to a price-to-sales ratio. CryptoQuant calls this the Market Cap to Annualized Daily Revenues (MCAR) ratio. The MCAR ratio tells whether a miner’s underlying Bitcoin production or USD-denominated revenue supports the company’s valuation. “By comparing each company’s market capitalization to its annualized revenue on a daily basis, investors can identify which firms are potentially overvalued or undervalued. This enables more informed portfolio allocation—favoring companies whose market valuations lag behind their revenue generation while reducing exposure to those trading at excessive premiums,” CryptoQuant stated. WULF and MARA Valued at Relative Premiums From CryptoQuant’s analysis, the MCAR ratios for WULF, MARA, RIOT, CLSK, HIVE, and IREN are 5.1, 4.4, 3.7, 3.3, 1.9, and 1.8, respectively. These numbers reflect how much investors pay for every dollar of estimated annual revenue in real time. WULF and MARA have the highest valuation multiples, so CryptoQuant believes they are priced at a significant premium compared to the other firms. RIOT, CLSK, and HIVE are not as overvalued, so their market valuations hover within the same range as their revenue generation . CryptoQuant found that IREN has the lowest valuation despite posting strong growth in its BTC production. This suggests that the company is likely undervalued by the market. On the brighter side, the firm faces a potential upside if it becomes repriced in the market. “The current valuation dispersion opens opportunities for relative value strategies by identifying firms like IREN that may be lagging in market recognition despite solid operational performance,” the analytics firm added. The post Are Bitcoin Mining Stocks Mispriced? Here’s What On-Chain Data Is Telling Investors appeared first on CryptoPotato .

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