Dogcoin has recently surged again, topping out at $0.7. So far this year, even though dogcoin has recently pulled back sharply, it has risen more than 110 times, and some newcomers to the cryptocurrency world have simply started digging up dogcoin.
Speaking of blockchain mining, the emergence of Chia coin some time ago also brought about a wave of hard drive mining boom. The cryptocurrency bull market has brought excess returns to mining, and many listed companies have joined the industry of mining. So what is the situation among the companies that are now transforming or laying out towards blockchain mining at home and abroad? Which one has more investment potential? Let’s take an inventory.
Bit Mining (BTCM)
We start with Bit Mining, which released its first quarter earnings yesterday. Bit Mining announced its transition to blockchain mining in December 2020, and instead of just buying mining machines, it ran a comprehensive layout of the entire industry chain from the beginning.
Firstly, it acquired Lotto Mutual Entertainment in December 2020, thereby owning the largest, most qualified and highest construction standard high-quality hydropower mine located in Sichuan in China. The three own mining sites and a group of experienced operation and maintenance teams can ensure the stable operation of the miners and keep the electricity cost relatively low by taking advantage of the hydropower.
Then in February 2020, we acquired the entire business of BTC.com, a mining pool owned by Bitty Fawn, including the BTC.com website. BTC.com is very well known in overseas cryptocurrency circles and was once at the top of the global mining pools in terms of computing power for many years.
In terms of captive mining, Bit Mining continues to purchase bitcoin futures miners and spot miners, as well as ethereum miners. Since this year, the price of bitcoin once exceeded the 60,000 mark, while the price of ethereum has also reached record highs frequently, and is now up over 450%.
People in the mining community now know that after Bitcoin entered the bull market, mining machines are hard to find. So just in April, Bit Mining announced that it had signed an acquisition agreement with mining machine maker Honeybee Computing. Although Honeybee Computing is not as well known in the market as Sleipnir or Ant, its product technology is just as leading, with its 7nm bitcoin miners developed in partnership with MediaTek and with the world’s leading packaging company, Sun and Moon, as a shareholder, providing packaging services for Honeybee Computing. The acquisition of Honeybee Computing can guarantee Bit Mining’s own supply of miners. While others are anxious about chip capacity fluctuations and anxious about repeated delays in the delivery of futures miners, Bit Mining’s advantage of self-production and self-supply becomes apparent.
Let’s take a look at another company transforming blockchain – Ninth City. According to its SEC disclosure, Ninth City started to enter the mining business in January 2021 by buying bitcoin miners in two ways: first, by buying Sleipnir and Ant mining machines from mining machine manufacturers Bitmicro and Bitmain respectively for cash. The second is to buy miners from third-party miner owners through additional shares.
The total computing power of Ninth City is now roughly 693 PH/S, and 126 bitcoins were mined in the first quarter.
Source: Ninth City SEC filing
However, in contrast to Bit Mining, Ninth City does not seem to have made progress in laying out other businesses in the mining sector, or even its own mining farms, other than mining with its own mining machines. And mining at third-party mining farms increases the instability of mining machine operation. For example, the recent hot discussion of “carbon neutral” has actually caused power outages in some areas of the mine, directly leading to the mining machine can not be turned on. When a miner can’t turn on, it’s like a money tree that can’t shake money, not only can it not generate revenue, but it continues to cost money in hosting fees and possible relocation costs. Perhaps based on this power fluctuation, Nine Cities will consider building its own mine, as Bit Mining has done, as a way to increase the stability of mining operations.
Bit Digital (BTBT)
Again, BTBT, which crossed over from finance to blockchain, formerly known as PointCow Financial, officially entered the bitcoin mining business in April 2020 through its acquisition of Hong Kong-based XMAX. According to BTBT’s SEC filing on May 7, BTBT now has 43,606 bitcoin miners with 2,423.15 PH/S. If you look at it purely in terms of computing power, it appears that BTBT is a force to be reckoned with in the mining industry, but its share price has fallen 52.30% since the beginning of the year. The stock market is based on expectations, and the poor “stock performance” over the past 5 months indicates that the market no longer seems to be bullish.
Source: BTBT SEC filings
Going back in time, BTBT was shorted by foreign institution J Capital, which reported that BTBT’s mine and mining machine reserves may be false. Despite the fact that BTBT has posted a photo of its mining operations in Nebraska on its website, the stock price has not rebounded significantly. Perhaps the departure of prominent figures in the mining community from its management is also the reason for the dent in market confidence. However, BTBT’s first quarterly report released last week showed that it added 100 new mining machines in the first quarter, albeit a slightly smaller number, but at least this is BTBT’s first new addition since the end of last year, although the company has yet to announce its plans for additional capacity and other plans.
Marathon Digital (MARA)
Looking overseas, MARA has changed its name and main business several times. It has played with uranium mining business, invested in real estate, and also played with IP licensing operations. It started mining bitcoin miners by buying them on September 30, 2019, and keeps announcing the signing of orders to pre-purchase new miners. As of May 1, 2021, MARA’s arithmetic power reached 1.29EH/S market value reached 2.8 billion, much higher than the three blockchain companies listed above, even the fully laid out bit mining industry, market value is less than 900 million. However, this data on the one hand shows that the market has information on the future value growth of MARA, on the other hand, it can also be considered that the valuation of companies like Bit Mining, which just transformed into blockchain from the end of last year, has a large growth potential.
Source: MARA SEC filings
And Bit Mining’s quarterly report just released this week seems to show just what a mining company they are in the midst of a rapid growth period.
Bit Mining’s total revenue for the first quarter was $19.559 million, up a whopping 532.3% year-over-year and 117.8% sequentially. And 60% of that revenue came from the company’s mining business. It is evident that the choice to change the main field from the lottery track to the blockchain track is a right decision for the company.
And in the earnings report, not only the revenue for the first quarter was disclosed, but also the latest progress of the company’s mining business. In total, Bit Mining has 50,113 mining machines with a total computing power of 1,031.5 PH/S. It has mined 147 bitcoins from mining so far, with a daily production of up to 4 bitcoins. At the current price of $59,000, self-mining has brought in $8.26 million, or 53.69 million RMB.
Bit Mining also has more than just mining revenue, as its self-run mining farm generated $28.3 million in revenue in April, while its acquisition of BTC.com, currently the third largest mining pool in the world in terms of computing power, generated gross profits of about RMB 55.3 million for BTC.com in April.
Source: BTCM 2021 Q1 Report
Although the business of Bit Mining is now very different from the same period last year and cannot be directly compared, it is enough to show the growth potential of blockchain mining. And, Bit Mining is a full industry chain layout, with revenue sources not only from self-operated mining, but also from mining farms and pools. Even if Bitcoin enters a bear market in the future, these revenues can smooth out the impact of the cycle. This is the benefit of the full industry chain layout of Bitcoin Mining, which brings diversified revenue.
So what is the point of Bit Mining as a full industry chain layout? In addition to the increased arithmetic power from self-operated mining, there is the question of whether the miners provided by the acquired Honeybee Computing can help Bit Mining reduce mining costs. Can self-operated mining improve the overall gross margin.
Bit Mining is the only company listed in the full industry chain layout, if the subsequent continued to maintain the continued growth of computing power, the expansion of mining pools, stable operation of mining farms, and the steady development of mining machine manufacturing, then Bit Mining will not only become the industry benchmark, but also become the valuation of the sector weathervane.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/inventory-of-blockchain-mining-companies-who-is-the-industry-trendsetter/
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