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Report: Marathon and Riot Among Most Overvalued Bitcoin Mining Stocks

Report: Marathon and Riot Among Most Overvalued Bitcoin Mining Stocks

Bitcoin mining analyst Jaran Mellerud has identified Marathon Digital and Riot Platforms as the most overvalued crypto mining companies compared to their competitors. Mellerud’s analysis is based on the enterprise value-to-sales ratio, with higher ratios indicating overvaluation. Cipher has the highest EV/S ratio at 7.8, followed by Marathon and Iris Energy at 5.6, and Riot at 5.5. Mellerud attributes the high ratios of these companies to institutional attention from investors like BlackRock. He expects investors to start allocating to other players in the coming months, which could help balance the valuation discrepancies. Mellerud suggests that there are better-priced opportunities with lower EV/S ratios in the Bitcoin mining sector. He also points out Riot’s high EV-to-Hashrate ratio as another indicator of overvaluation. Despite the rebound in the Bitcoin mining sector, not all analysts believe that mining stocks will continue to rise. Caleb Franzen, founder of Cubic Analytics, highlights the upcoming Bitcoin halving event and suggests that mining firms may need to become more productive to sustain their businesses. Marathon currently holds the largest amount of Bitcoin among mining companies, with 13,726 BTC worth $486.1 million.

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