Blockchain Companies: Expectation vs RealityCryptocurrency bubble?
When analyzing the financial data of companies in the blockchain/cryptoassets area, more specifically the EPS (Earnings per Share), we can see a huge discrepancy between expectation and reality.
It should be noted that some of these companies have never made a profit during their entire existence, and have negative cash flow.
The question is: to what extent has the market already priced in these negative results?
Would there be more room to fall?
Below is the concept of EPS, and shortly after a snapshot of the current EPS versus expected EPS, from the main companies in the cryptocurrency and blockchain area.
I'm not optimistic about this data, unless there's something that only I didn't see.
What is basic EPS?
Earnings per Share is the amount of earnings per share of issued, ordinary shares. When companies report financial results, earnings per share is one of the most commonly measured metrics.
(TradingView)
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Companies analyzed:
Marathon
Riot Blockchain
Hut 8 Mining
Coinbase
Bitfarms
BitNile
CleanSpark
Core Scientific
Argo Blockchain
Canaan
Hive Blockchain
Digital Bit
Galaxy Digital
BIT Mining
Valour
Ebang
Greenidge
Iren
The Blockchain Group
TeraWulf
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ETFs analyzed:
Proshares Bitcoin Strategy
Grayscale Ethereum Trust
Grayscale Bitcoin Trust