Bitcoin Miner Marathon Digital 'Inexplicably Expensive,' While Riot Platforms 'Cheap,' Says Analyst
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Reginald L. Smith highlights discrepancies in valuations of Bitcoin mining stocks. Marathon Digital (MARA) is deemed overpriced due to its long payback period, while Riot Platforms (RIOT) is considered undervalued, with its assets worth more than its enterprise value.
October 01, 2024 | 12:50 pm
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POSITIVE IMPACT
Riot Platforms is seen as undervalued by JPMorgan's Reginald L. Smith. Its land and power assets are worth $1.4 billion, more than its enterprise value, while it produces eight bitcoins daily.
The analyst's view of Riot Platforms as undervalued, with assets exceeding its enterprise value, suggests a positive short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Marathon Digital is considered 'inexplicably expensive' by JPMorgan's Reginald L. Smith. The company's mining setup is valued at $2.8 billion, but it mines only three bitcoins daily, making its payback period over 40 years.
The analyst's assessment of Marathon Digital's long payback period and high valuation suggests a negative short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100