Well, this is the most exciting time for the crypto space, as Bitcoin hits new all time highs on a frequent basis. Not even the nasty bear market from a few days ago appears to be getting in the way. And, unless you’ve been living under a rock the past couple of months, the crypto mining companies have also been going parabolic! Particularly for this blog, Riot Blockchain and Marathon Patent Group. But what do these companies actually do and why do they continue to skyrocket alongside cryptocurrencies. Time to analyze: Riot Stock vs. Marathon Patent Group: Battle of the Crypto Miners
Riot Blockchain Stock
Let’s start with Riot Blockchain, Inc. (NASDAQ: RIOT). RIOT has been my personal favorite, and I have been actively trading it since about $2 several months ago.
If you would like to read my prediction from December, you can check it out here.
Even before I started writing about the two major crypto mining companies, I predicted Bitcoin would break $36,000 this year. At the time of writing in that previous blog, Bitcoin was trading under $9000. You can read that here.
As of this writing, Bitcoin is hovering around the $40,000 range, and, if the Fibonacci sequences are correct, it may go to $46,000 all the way to $62,000 before the next bear market.
We will see!
In the meantime, here is a description of Riot Blockchain, Inc. According to the company, their business model and mission:
Riot Blockchain is focused on supporting the bitcoin ecosystem through proof-of-work mining. We are believers in the bitcoin opportunity and our continued efforts aimed at growing our mining operation demonstrates our commitment to the bitcoin network.
Riot is one of the largest U.S. based publicly-traded bitcoin miners in North America and we are constantly working to improve our efficiency and production.
Do You Even Mine Crypto?
Based on the information available from the company and the price of Bitcoin, the answer is yes.
Riot’s Crypto Mining Specs:
Our 100% dedicated bitcoin mining operations is currently located at Coinmint LLP’s Massena, New York facility which houses our currently deployed hardware fleet consisting of 6,040 next generation Bitmain Antminers. We currently have a deployed hash rate capacity of 456 PH/s utilizing approximately 16.3 megawatts (MW) of energy.
Riot has 1,000 more S19 Pros scheduled for delivery in early November 2020 which is expected to increase our hash rate capacity to 566 PH/s utilizing approximately 19.7 MW of energy.
We also have 8,000 S19 Pros scheduled for delivery in equal installments over the first four months of 2021. By early May 2021 we are expected to have a total hash rate capacity of 1.45 EH/s (1,446 PH/s) while utilizing approximately 46 MW of energy.
Wow…that is a massive crypto mining operation. You can see the size of the mining machines in the photo below (from the company website).
Brief Financial Information
Now that we know what they do, we should analyze the Riot Blockchain Stock’s financials. That is the best way to decide if one should invest or stay on the sidelines. As well as how it relates to Marathon Patent Group stock.
From the company’s latest quarterly financial filing:
This form shows the company had about $30 Million in cash and cash equivalents as of September 30, 2020. As well as $62 Million is total assets.
Both of which are up significantly from last year. Additionally, the company has very little debt, which is a very bullish sign.
Next, we have the quarterly financial results from their crypto mining operations.
Here, you can read through their revenue, revenue growth, costs, expenses and total amount of shares available to the public.
It is important to remember that Bitcoin was trading significantly lower when this was released. These numbers should theoretically be much higher on the next release, which is why investors have been bidding up the stock back to near 2017 highs.
Riot Stock Technical Analysis
Next, onto the technicals!
As you can see from this 1 year chart of RIOT below, the stock has gone PARABOLIC.
Currently, RIOT is trading around $26. This is over 2600% higher from the March lows of $0.86c. Good work if you followed my advice on this one…BULLISH!
Not only is it near the 2017 highs, but for the past couple of months, Riot Blockchain Stock has been hitting new 52 week highs.
Technically it is trading at 3 year highs, and it has not traded this high since the wild Crypto Bull Run of 2017.
The general rule of thumb is that stocks hitting 52 week highs tend to continue hitting new 52 week highs.
Like Newton’s First Law of Motion. An Object in motion continues to stay in motion…unless acted upon by an external force.
In RIOT’s case, crypto continues to move higher, with dips in between, but no significant pullbacks yet. Ergo, no outside force acting to bring down RIOT…yet.
But can it keep moving higher? Perhaps back to $50, the all time high?
We will find out!
Marathon Patent Group Stock
According to the company website:
Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. We currently operate our proprietary Data Center in Hardin MT with a maximum power capacity of 105 Megawatts. Once fully deployed, the Company will have 21,500 Antminer Bitmain S-19 Pro Bitcoin Miners in operation at this facility. The Company also owns 2,060 advanced ASIC Bitcoin Miners at a co-hosted facility in North Dakota.
Sounds fancy, and very similar to Riot Blockchain. In terms of their operation, it is massive. If the disclosures are correct, their mining operation is one of the biggest in the world, and apparently growing a lot. Just powering this facility takes a monstrous power station.
See crypto mining warehouse below:
Both of these companies have an absurd amount hardware…
Brief Financial Information
This is where it gets interesting. According to the MARA’s latest 10Q, the company’s assets grew from $1.5M around the beginning of 2020 to over $31M in assets as of September 30, 2020. That is Yuge.
And, just like RIOT, they have very few liabilities. Good asset to liability ratio, if that matters anymore in this environment.
Consolidated financial data:
Again, here, you can read through their revenue, revenue growth, costs, expenses and total amount of shares available to the public.
Remember, Bitcoin was trading significantly lower when this was released. Like RIOT, these numbers should theoretically be much higher on the next release, which is why investors have been bidding up the stock alongside RIOT stock.
They are expanding rapidly, and it will be interesting to continue following Marathon Patent Group.
MARA Stock Technical Analysis
As you can see from this 1 year chart of MARA below, the stock has gone PARABOLIC.
Currently, MARA is trading around $23. This is over 4000% higher from the March lows of $0.56c!! Kudos to those who bought and hold!
Reminder, the general rule of thumb is that stocks hitting 52 week highs tend to continue hitting new 52 week highs.
However, this trend can change in an instant if cryptocurrencies enter a bear market. It will happen at some point, but nobody really knows when. At the moment, the demand and interest for crypto is very strong, but always remember to manage your risk!
What an incredible (and profitable*) year 2020 and 2021 have been for those in the crypto space. Truly incredible gains in such a short period of time. Hopefully you follow us on our journey in analyzing cryptocurrencies and crypto mining companies entering the space.
We will be reporting on as many as possible and hope you will comment the ones you are watching in the comments! Overall, RIOT and MARA Stocks have been very profitable to trade in the past several months. Can they continue their upward march?
It wholly depends on the demand and price action of cryptocurrencies. At this moment, it appears Bitcoin is holding its support levels while creating a bull flag on the daily chart. If you are an investor in the crypto space, keep watch of the charts. A break in either direction can trigger a very good trade.
Check back again as we continue writing on this subject!
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