The importance of American Bulletin Boards to the SP performance of the crypto miners14 Feb 2021 15:51
The importance of American Bulletin Boards to share price (SP) performance of crypto miners.....This is something I have been mulling over today after seeing the amazing 40% SP rise of ARBKF on Friday.
There is daily discussion on this board about the high valuations of the Nasdaq miners Riot & Mara in comparison to Argo + Canadian market miners, for which the business fundamentals do not appear to justify this large disparity in respective SPs.
It is suggested by many that this disparity is due to the greater liquidity and risk appetite for the Nasdaq market......
I personally don’t buy into this as being the true root cause of the large disparity, because all of the seven main publicly listed crypto miners can have their stock purchased relatively easily in US and so I ask why would someone in US pay ~5 times higher price for essentially the same business than they can buy elsewhere on their market ? ......I believe it is therefore an outcome being root caused by something else.....
That something else I believe is respective differences in the levels of their retail investor sentiment and publicity. For which the main arena is to be found for each of the seven Companies via their American Bulletin Boards activity levels (Stocktwits, etc). I believe it is these respective differences in Bulletin Board activity levels that in turn supports to drive their respective differences in liquidity & risk appetites and hence their SP’s
To illustrate this, below is a table of the seven main publicly listed miners with their current market cap (MUSD), current Stocktwits No. of watchers and their ratio of market cap to Stocktwits No. of watchers (x1000):
NAME US Market Mcap Watchers Ratio(x1000)
Mara Nasdaq 3610 77,325 46.7
Riot Nasdaq 3330 63,821 52.2
BTBT Nasdaq 1170 9,742 120.1
HIVBTF OTC 1080 7,056 153.1
HUTMF OTC 783 2,503 312.8
ARBKF OTC 710 10,950 64.8
BFARF OTC 296 2,950 100.3
The two Companies with best ratios are Mara and Riot. You will notice how BTBT despite being on Nasdaq, it lags by more than double in its ratio. When we look at non US listed (OTC) miners we can see that Argo has quite significantly the best ratio amongst them and interestingly Hut8 has overall worst ratio by quite some margin.
This is directly due to strong support of many members of this LSE board who joined Stocktwits & promote Argo to US market. Whilst Canadian miners I believe suffer from diluted spread of watcher support that weakens their ratio’s.
It is very important we strive to continually improve the ratio for Argo and to do this I would ask for all holders who have not yet joined Stocktwits to do so (it takes 2 mins) & start ARBKF posting ASAP.
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