Is There Mispricing in Bitcoin Mining Stocks? Insights from On-Chain Data for Investors

CryptoQuant, an on-chain intelligence platform, has developed a system to monitor the real-time revenue of major public Bitcoin mining companies, aiding in determining their relative market value. The framework tracks miners' Bitcoin blockchain addresses and BTC production, allowing for the derivation of undisclosed revenue metrics.

Companies monitored include Marathon Digital, Riot Blockchain, Core Scientific, and others. The system establishes a Market Cap to Annualized Daily Revenues (MCAR) ratio, similar to a price-to-sales ratio. This ratio helps determine if a company's valuation is supported by its Bitcoin production or USD revenue.

Companies such as WULF and MARA are considered overvalued, while IREN appears undervalued despite robust BTC production growth, indicating a potential for market repricing.