DanBTC916
How to Track and Analyze Bitcoin Miners - CleanSpark (Part 1)
With Bitcoin entering September, a historically volatile month after a 5 month long consolidation, it might make sense for investors to consider allocating to publicly traded Bitcoin miners, especially with Bitcoin's historically favorable performance in Q4 during halving cycles. Not all publicly traded mining companies are the same. It is important to analyze a variety of onchain, quantitative, and qualitative metrics to identify which miners are best positioned for the rest of the bull market. I will be starting a series of posts covering how I analyze publicly traded Bitcoin miners. Today, we will be covering CleanSpark (Ticker:CLSK), one of the largest US publicly traded Bitcoin mining companies. While a company’s hashrate is important, metrics such as energy cost per kWh, mining efficiency, hash rate growth, liquidity, gross margins, and overall company execution carry greater weight. With the Bitcoin halving occurring back in April 2024, block subsidies have fallen in half, thereby doubling the cost of production for all miners. This puts more emphasis on miner’s operating efficiency and energy cost, to preserve margins. When valuing Bitcoin miners, I prefer to look at an adjusted book value per share metric, which factors in various company assets and debt to give a more accurate reading of true book value. With current data, CleanSpark trades at roughly 1.9x book value. As Bitcoin was slowly recovering from the bear market, CleanSpark was trading significantly below book value, representing a multi year opportunity to accumulate shares. Since then, CleanSpark has roughly maintained it’s 2x book value per share multiple, which I interpret as the market showing confidence in CleanSpark’s strong execution, as its valued at a higher multiple than its competitors. To track daily production, I use CQ’s Mining Companies Dashboard. I find this dashboard very useful because it allows investors to track intra-month performance of miners before the miners post.