MARA liquid assets are $163.8 million in Bitcoin plus $550 million in cash, or $$713.8 million in total. This makes it sensitive to the price movements of bitcoin.
MARA will be the largest Bitcoin mining operation in the world later this year based on the growth of its mining gear installments. It will produce a hash rate of 10.36 exahash, or 2 M bitcoin mined per day. Electricity costs are projected to fall for the company so it would have a gross margin after such costs of 1.7 M bitcoin per day at current bitcoin prices. At $30,000 per Bitcoin, MARA is expecting to generate $51.5 million per month or $618 million per year according to its own estimate.
Its net income is projected to be $480 M annually on the mining alone.
At at P/E of 6, MARA would be worth $2.88 B. When you add in the $750 M in btc and cash, MARA's value rises to $3.63 B. Its current valuation stands at $1.2 B.
And this is assuming the price of bitcoin does not rise. Current price = $36445. The Grayscale unlocking starts today, thus should be a major bitcoin tailwind in the days ahead. Since we are still in the earlier stages of this bull market which started in early 2019, bitcoin should rise into the 6-figures.
Expect similar for RIOT and NCTY though perhaps with somewhat less price performance since their fundamentals are not quite as impressive. But as we know, industry groups tend to rise pushing the companies within that group higher.
Market Lab Report - Bitcoin mining companies update - MARA, RIOT, NCTY
|3 Feb 2021 03:12 ET
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