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In terms of listed miners’ performance, we will be looking at their performance in both USD and BTC since early 2020.
RIOT, MARA, BITF and HUT are specifically examined.
As of early 2020, these four companies have outperformed Bitcoin, and there are a couple of big reasons for that. Publicly traded stocks are often valued at a multiple of their current earnings / cash flows.
Towards the end of the final quarter of 2020, miners ‘hash price began to skyrocket, and with that, public miners’ revenue and then market caps followed. The hash price is quantified by dividing the hash rate by the miners’ income (specifically, dollars per terahash).
Since the hash price bottomed in October 2020, miners have far outperformed BTC as the hash price has increased up to 400% during the period.
What you should see from evaluating the performance of publicly traded miners versus Bitcoin itself is that due to the capital structure of their business and valuations in the stock markets, miners can and likely outperform Bitcoin during periods when the hash price is rising significantly will.
In the long run, however, the revenues in Bitcoin for any mining company are guaranteed to decrease in Bitcoin, and even with Bitcoin mining stocks trending to zero over time in Bitcoin, due to the excessively high profit multiples companies are currently trading in the stock markets in a zero interest world expressed (again based on the equity multiples assigned in a fiat-denominated world with zero interest rates).
The hash price denominated in Bitcoin tends towards zero programmatically as the hash rate increases and the output decreases with each further halving.