Cointelegraph Research Terminal, the leading provider of premium databases and institutional-grade research on blockchain and digital assets, has added a new report to its expanding library. The last article looks at a particular group of Bitcoin mining (BTC) players. Published by cryptographic consultancy Crypto Oxygen, the report highlights the current landscape of publicly traded cryptocurrency mining companies that control approximately 17% of the total hash rate of the entire Bitcoin network.
The cryptographic mining industry is a fast growing and evolving sector. In January this year, a US company, Scientific Scientific, went public through a merger of Special Purpose Acquisition Companies (SPAC), making it the largest listed cryptocurrency mining company in terms of revenue and hash rate. Core Scientific’s hash rate leads all public companies with 8.3 exahash per second (Eh / s) and extracted 5,769 BTC in 2021, generating about $ 545 million in revenue. In second and third place in terms of revenue are Riot Blockchain and Hive Blockchain Technologies, which earn $ 215 million and $ 195 million, respectively.
Strategic, operational and financial breakdown
The hash rate and revenue are just a few ways to distinguish between companies, but they do not paint the whole picture as some companies have separate revenue models from their main mining activity. The report analyzes these key statistics and provides a more detailed comparison, covering the strategic, operational and financial performance of each company.
Download the full report, complete with graphics and infographics from the Cointelegraph research terminal
For example, the report compares the operations of each company through the current hash rate per US dollar invested. This makes it easier to see which company offers the most investment value to investors, which in this case of this metric is Stronghold Digital Mining with 46.56 gigahashes per second (GH / s) to lead the package.
In addition, the report also provides a quick snapshot of each company’s operations, including key operating performance indicators (KPIs) for each company, business model, data center locations, BTC holdings, and other relevant information. .
Specifically, major players like Marathon have lean settings and are totally dependent on being hosted by external vendors, while others like Stronghold own assets along with the entire value chain, including electrical infrastructure.
Instead of relying solely on financial reporting and public statements, Crypto Oxygen also conducted a survey to include direct comments from the companies analyzed in its research.
One of the main concerns of Bitcoin mining, in general, belongs to the environment, social and governance or ESG. Sustainability has always been a central point of conversation about the cryptographic mining industry, and publicly traded companies are especially subject to greater scrutiny. However, there seems to be a focus among companies in the report on limiting the carbon footprint of their operations, despite differences in approaches.
Of the 12 companies, eight are already carbon-neutral or environmentally beneficial operations. Bitfarms, Hive, Iris Energy and Argo are four companies that rely solely on renewable energy sources. Northern Data, Core Scientific and Greenidge Generation use offset credits to reduce their carbon footprint. Marathon Digital Holdings and Hut 8 Mining are also using carbon offset credits and aim to be carbon neutral by the end of 2022, while 67% of Bit Digital’s energy source is from renewable energy sources.
Investing in public cryptocurrency mining companies gives investors exposure in the cryptocurrency space, even if it is not as straightforward as keeping Bitcoin. The correlation between the share prices of mining companies with the price of BTC is highlighted in the report and the recent fall in the price of BTC shows this. It also shows that BTC’s most significant holdings tend to be a key driver in the recession.
However, the share prices of mining companies have dropped disproportionately. What the 46-page report provides is an analysis of the performance of each public mining company and presents a detailed comparison of each to help clarify the actors involved in the developing space and industry in general. For those interested in reading the full report, download it by visiting Cointelegraph Research Terminal.
This article is for information purposes only and does not represent an investment advice or an investment analysis or an invitation to buy or sell financial instruments. Specifically, the document does not serve as a substitute for individual investment or other advice.