We can compare the valuations of mining companies using industry metrics like Market Cap/Hashrate or general metrics like Price/Sales (P/S). Most publicly listed miners have similar cost levels. Therefore, sales is a valid proxy for earnings, which makes P/S an excellent metric for the industry.

A miner’s hashrate is their capacity to mine new bitcoin. Therefore, Market Cap/Hashrate considers future earnings, and we can view it as a simplified version of the Forward Price/Earnings ratio.

We can compare the valuations of mining companies using industry metrics like Market Cap/Hashrate or general metrics like Price/Sales (P/S). Most publicly listed miners have similar cost levels. Therefore, sales is a valid proxy for earnings, which makes P/S an excellent metric for the industry.

A miner’s hashrate is their capacity to mine new bitcoin. Therefore, Market Cap/Hashrate considers future earnings, and we can view it as a simplified version of the Forward Price/Earnings ratio.

Marathon has the highest valuation measured both by Market Cap/Hashrate and P/S. The company is in a high growth phase and has around 100,000 ASICs for delivery until July 2022. Once deployed, these machines will grow their hashrate by 546%. Marathon is also the best performing mining stock so far in 2021 and is up 205%.

On the lower end of the list sits Bitfarms. Even though their stock is up 165% in 2021, they still have the lowest Market Cap/Hashrate and P/S. Bitfarms’ P/S ratio is not much higher than the average P/S ratio of the SP500, which is 3.08 (Yahoo Finance).