Hey everyone kevin here data from cambridge bitcoin electricity consumption index. That's a mouthful shows that the united states is now the number one location for bitcoin miners. Back in may. Chinese financial officials announced their plan to crack down on financial institutions offering any crypto related services.

Of course - and this is despite the fact that one year ago today, mainland china was responsible for 67 of all bitcoin mining, which is insane, but as of july of this year, the united states is the leader with over 35.4 percent of all bitcoin mining happening in The united states, your next runner-up, is not borat, but it might be his home country, kazakhstan, at 18.1 percent russia at 11.2 and canada at 9.6. Kazakhstan's president has also signed a new law. Now taxing cryptocurrency miners in the country slightly on a per kilowatt-hour basis, which is actually seen as also bullish, because it's kind of a way of saying hey, like we're good, keep mining. We like it but we're going to take a little bit of revenue, and so this new milestone has raised the question of hey.

Should we consider investing in cryptocurrency miners, and i want to give a little bit of an overview of some of the cryptocurrency related companies, especially since we now have seven trillion dollars of stock or equity companies or just equity in general, in our markets exposed to cryptocurrency? This includes visa mastercard, jp morgan, tesla micro strategy, hud 8 bit farms marathon, digital riot, blockchain, you name it. A lot of companies are now exposed to cryptocurrency. This is a very, very huge market. The cryptocurrency markets around two trillion dollars in total seven trillion dollars, though, of equity exposed to cryptocurrency, even consider square as an example, and so i thought it was worth comparing some of the cryptocurrency miners and trying to understand what some of the differences are of the Miners - and so what i wanted to do is a compare how much bitcoin a lot of these miners actually huddle, how much their market cap is and then we'll kind of compare those and we'll explain.

Why, then, we'll also kind of compare some of the hash rates of these companies, which would just show us how potentially powerful they are at uh at expanding their operations and how efficient they are and uh yeah we'll do a quick little comparison. So, first, it's worth noting that if you, like my perspective, seriously, consider checking out the programs on building your wealth link down below you get lifetime access to them. I add lectures all the time you get access to me in daily live streams when the market is open that part for a limited time, but the lectures for life you get access to those there's no upsell. When i add lectures they're added totally for free.

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Let me give you an example. This right here that i'm pulling up on screen is hut 8 mining. You can see that they hold 4724 bitcoin as of september 30th. That's worth about at the time when i wrote this down.

Bitcoin's gone up a little bit uh, but at the time i wrote this down. That was worth around 270 million dollars in in united states dollars since hud 8 is a canadian company. I've also interviewed their ceo twice. You can go to youtube and just type in meet kevin hut, 8 and you'll find those interviews, but anyway, they're selling for a market cap of 1.74 billion usd that is about 6.4 extra bitcoin value.

So if you're just trying to buy the miners because of bitcoin keep in mind that most of your money is actually going towards the company itself and not bitcoin value. So let me make that a little clear if you take 270 million divided by 1.74, the market cap or uh 1740. This is the better calculation. That means only about 15.5 percent of the money you put into hud-8 stock is actually going to owning some share of bitcoin.

The other about 85 is going to owning a company that arranges miners and computers. Now one thing i thought was interesting: when i was going through the investor relations reports and and the filings for hud 8. There was not a lot of talk about research and development when there was there were not a lot of. I couldn't find any expenses related to research and development, so, in my opinion, you're not really paying for intellectual property you're, not really paying for research and development you're, basically just paying for which company is able to string together, the nicest and potentially most efficient array of Miners that are going to have the most long-term value, because the issue is mining machines depreciate over time they become less functional and less valuable.

So if 85 percent of your money is going to minor like the mining equipment, you'd want to make sure that mining equipment was really really good. So i i can't really recommend a mining company as a way as an indirect way to own bitcoin uh, even though this stock tends to move with bitcoin a lot you're really paying a lot. For i mean 85 of your money is really going to the mining devices themselves for the nasdaq they have a hash rate of 1.37 extra hashes per second. This is as of september 15th.

They have a target of about 2.5 to 3 by year, end and 6. By mid-2022 uh, this is just a way that they want to grow their business in terms of how much they're capable of mining uh the greater the hash rate for the company, the more potentially that they could mine and contribute to the global hash rates of bitcoin. So uh and take a share of hud 8. It's worth noting takes about 1 of the global mining of bitcoin.

So it gives you a little bit of a scale just one percent in hud-8 and they're worth 1.74 billion dollars. Then you've got bit farms bit. Farms has about 2300 bitcoin, as of october, 1st 130 1.3 million usd dollar equivalent. At the time.

I wrote this down. That brings them to a market cap of about 6.7 times btc value or i'm sorry market cap of about 880 million dollars, which is uh about a multiple of 6.7 times bitcoin's value. This shows you that they're actually pretty similarly valued to hud 8, which i thought was interesting. They are sitting at right now about 1.53 extra hashes or uh.

I should say what uh x yeah x a hash per second there we go it's in this bizarre word. Uh, that is a that is a multiple of uh terra hashes, which is oftentimes. What we hear when we talk about um bitcoin mining, then we've got marathon. Digital they've got quite a bit.

They've got 7035 of bitcoin. Now it's worth noting that marathon digital uh, it seems to be more of i hate to say it, but like a patent troll than uh than a bitcoin miner, and i know that sounds kind of insulting, but uh marathon digital makes a lot of money. Winning settlements with companies by suing them for potential patent violations. So i it kind of makes sense that they're selling for a greater multiple of bitcoin value to market cap they've got about 401 million worth of bitcoin the market cap sitting about 4.26 billion and now that's.

Why they have this elevated, multiple of 10.6 in terms of bitcoin value to market? A cap they've got about 2.3 in the hash rate level they're targeting a huge expansion here. They think they can get to 13.3 by mid next year. Then you get to riot blockchain. They hold 3534 bitcoin as of september 30th.

They trade for about 12.4 times bitcoin value, so kind of surprising that they have this big spread and don't have the other big sources of revenue like potentially marathon digital does. There might be something particularly that i might be missing here, though. What we're looking at here is that riot is really just the most expensive just based on bitcoin holdings and they've got a substantially lower hash and lower hash target than companies like marathon, which uh, which are selling for a rich, multiple as well, but have other sources Of revenue, then folks you get to the opposite end of the spectrum, and this is a company like microstrategy, which huddles 108 9992 bitcoin the most out of all of these that's worth 9.2 billion dollars. Its market cap is 7.06 billion dollars and it's really only trading for 1.1 times its bitcoin value and, quite frankly, that's because the company doesn't have much actual value beyond its bitcoin holding it's not mining.

It's not doing anything. Special. The company was kind of floundering and failing and investing into bitcoin or going all into bitcoin was a hail mary that really worked out for michael saylor, and if you really want to own bitcoin through a stock, i hate to say it. But microstrategy is probably the cheapest way, uh to expose yourself to cryptocurrency via a stock than any of the mining companies, just because you're paying a massive amount of money at the other mining companies for other aspects of their businesses like mining or uh patent trolling whatever.

Despite all of this, what's really weird - and this is just the oddity of the stock market - is take a look at this when you look at companies like hud 8 mining on a day like today, where bitcoin is rocketing, we're over 60 000 now honey mining is Up 13.7 you've got marathon digital up, 6.7 percent. You've got uh high of up four point: five, a lot here riot block chain; three point: seven: five: a lot of these mining companies and crypto related companies doing very, very well when bitcoin moves fast uh. Now, interestingly, though, the one with the lowest spread, uh in or or multiple, i should say, micro strategy, it's only up 2.93. So you have this kind of like weirdness, of how the miners seem to grow more when bitcoin moves more rapidly uh, despite the fact that they're you're getting less bitcoin and you're getting more mining technology and hope for future bitcoin in those.

So it's worth mentioning that you're, probably going to have more extreme swings to both the upside and the downside in some of those higher multiple miners, especially the smaller cap ones like hud 8, which is a small cap company. But that is pretty incredible. You're pretty close to par at microstrategy. So again, if you want to hold a particular stock that exposes you to cryptocurrency microstrategy's, the one because they're really not being valued for doing anything other than holding bitcoin well folks, there you have it.

If you found this helpful check out the programs linked down below on building your wealth, use that coupon code diamond hands before it expires and folks thank you for being here. I really appreciate it and we'll see in the next one goodbye you.