Ethereum Could Overtake Bitcoin, Messari Analyst Says

Ethereum Could Overtake Bitcoin, Messari Analyst Says

InvestorPlace

Crypto mining stocks have become fashionable lately, especially since they are generally seen as a substitute for owning cryptocurrency. So, instead of buying Bitcoin (CCC:BTC-USD) or Ethereum (CCC-ETH-USD), you can buy a crypto mining stock in the same way people buy gold mining stocks. They see those as an alternative to owning gold. One reason for this is the companies make revenue and have the ability to generate profits. Owning a cryptocurrency does not guarantee you any kind of revenue. Another reason is that a number of these crypto mining stocks have begun holding as well as buying their underlying cryptos. In the case of Marathon Digital Holdings (NASDAQ:MARA), the company does not convert its mined cryptos into dollars. It simply holds them on their balance sheet. A third reason is that a number of these companies now have very high gross margins. These windfall profits are due to a wide gulf between the costs of mining, even with heavy electricity costs and high hash rates, and the much higher price of Bitcoin and other cryptos. For example, some of these crypto miners have secured very favorable long-term electricity contracts with their local energy providers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Retail Stocks That Are Far Too Close to Failing Therefore, the following four crypto mining stocks are worth considering. Here is the list: Riot Blockchain (NASDAQ:RIOT) Hive Blockchain Technologies (OTCMTKS:HVBTF) Hut 8 Mining Corp (OTCMKTS:HUTMF) Bit Digital (NASDAQ:BTBT) Let’s dive into these stocks. Crypto Mining Stocks To Buy Now: Riot Blockchain (RIOT) Source: Shutterstock Market Capitalization: $4.25 billion Riot Blockchain is a digital currency mining company based in Castle Rock, CO, but its mining operations are in upstate New York. It also buys and sells digital currencies, and provides accounting, audit, and verification services for blockchain-based assets. Riot recently jacked up its mining capacity so that it can achieve an estimated hash rate capacity of 1.06 Exahash per second (EH/s). That is equal to one quintillion hashes per second, a number with 18 zeros behind the 1, or 1 billion billion hashes per second. In addition, with additional application-specific (ASIC) mining rigs, made specifically for Bitcoin mining, the company expects to reach 3.8 EH/s by October 2021. This should make it the largest or close to the largest Bitcoin miners in the world. Riot Blockchain just released its earnings update for 2020 on March 15. It produced 1,005 Bitcoin in 2020, and by February had produced 179 Bitcoins, 43% higher than Jan. 2021. This puts it on a run-rate, which is likely higher now, of 2,148 Bitcoins, or 113.7% higher than 2020. Let’s assume a price of $58,000 per Bitcoin. That equates to a run-rate revenue of $124.58 million. Therefore, assuming it reaches a run rate of 250 BTC per month by October 2021, its revenue rate will be $14.50 million per month, or $174 million annually. As the company claims it will reach 4 EH/s by the end of the year, this could mean a substantially higher level. The earnings update did not release profit numbers, but we can assume that by the end of the first quarter of 2021, the company will be making significant profits. My estimate is that that it will make 90% gross margins. I suspect that the stock has the ability to at least double from here, as long as Bitcoin continues to provide huge windfall profits to Riot. HIVE Blockchain Technologies (HVBTF) Source: Shutterstock Market Cap: $1.3 billion Hive Blockchain is a Vancouver-based crypto mining company with operations in Canada, Sweden, and Iceland. The company produced earnings for its latest quarter ending Dec. 31 on March 2, showing that it generated $13.7 million. It mines both Ethereum (in Sweden and Iceland) and Bitcoin and has gross margins of 77%. Hive Blockchain makes about 20,000 Ether coins per quarter, which at today’s rate of about $1,800 per Ether, equals $36 million. That puts it on an annualized run rate of $144 million in revenue. At its $1.3 billion market cap, that puts Hive stock at about 9 times revenue. 7 Stocks to Buy No Matter What the Treasury Yield Does Hive also announced a $100 million At-the-Market (ATM) equity capital raise, which it will use to repay debt and for corporate purposes. Look for the stock, which is also listed in Canada, to continue to move higher, as it is up about 100% year-to-date, especially as Ethereum rises. Hut 8 Mining Corp (HUTMF) Source: Shutterstock Market Cap: $962 million Hut 8 Mining stock is up about 173% year-to-date, not only because it is a profitable Bitcoin miner but also because it has a big Bitcoin portfolio. The company will announce its earnings results on Mar. 25 for the year ending Dec. 31. Hut 8 says it has one of the highest installed mining capacities in its class. It also says on its website that it has one of the highest installed capacity rates in the industry. It claims to be among the “top 5 largest holders of self-mined Bitcoin of publicly-traded companies in the world.” A recent research report in Seeking Alpha on Hut 8 says it had, as of January 2021, 3,000 Bitcoins in its treasury. At $58,000 per BTC that equals $174 million. The company also says that it has raised $100 million in equity capital. The report in January said that Hut 8 stock was undervalued at the time. A new CEO and two new directors joined the company in November. The report said that the company had operations capable of producing 3.73 Bitcoin per day or 1,358 per year. At $58,000 per Bitcoin, that works out to revenue of about $78 million annually. It’s too early to determine what the company’s profitability really is, on an ongoing basis, without further information. Investors should read its March 25 earnings release carefully to see what its future value could become. However, I expect this to be an extremely positive report, so be prepared to see the stock move higher. Bit Digital (BTBT) Source: biggunsband / Shutterstock.com Market Cap: $822.6 million This is a relatively unknown U.S. and Chinese digital currency miner, but some analysts like this Bitcoin miner the most. For example, a recent Seeking Alpha report on March 10, indicates that it trades at a huge discount on a price-to-sales ratio compared to other miners. In addition, the company was producing 424.7 Bitcoins per month as of January. At $58,000 per BTC, that works out to $24.59 million, or $295.1 million annually. Given its $822.6 million market cap, this puts it roughly at a 3 times run-rate sales. The company has not yet produced its earnings for 2020, so look for more information from the company in order to determine its long-term value. But right now, with this information about its January operations, look for the stock to at least double, if not triple once the market realizes what its comp value is worth. But do be aware that the company recently released a press statement which it said it was providing in response to false allegations about the company’s operations. This may be referring to a Seeking Alpha report in April 2020 (back when the company was known as Golden Bull Limited) citing questionable practices at the company. As always, buyer beware. These crypto mining stocks provide good exposure to digital currencies without having to buy the cryptos themselves. As Bitcoin and Ethereum hit peak prices, these companies are now making superior windfall gross margins, especially compared to their history. 7 Cheap Stocks Under $10 Several of them have raised enough cash to be able to fund their operations with their cash assets, which allows them to keep the Bitcoin they have mined as long-term marketable securities on their balance sheet. This provides an additional upside leveraged exposure into digital currencies for investors. On the date of publication, Mark R. Hake held a long position in Marathon Digital Holdings (MARA). Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post 4 Crypto Mining Stocks To Buy Now To Gain Exposure to Cryptocurrencies appeared first on InvestorPlace.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 20th, 2021

Ethereum

Ethereum rose by 1.86% on Friday. Partially reversing a 2.63% loss from Thursday, Ethereum ended the day at $1,809.38.

A bearish start to the day saw Ethereum slide to an early morning intraday low $1,734.29.

Ethereum fell through the first major support level at $1,740 before rallying to a late intraday high $1,840.69.

The rally saw Ethereum break through the first major resistance level at $1,832 before falling back to sub-$1,810 levels.

At the time of writing, Ethereum was down by 0.41% to $1,802.01. A mixed start to the day saw Bitcoin rise to an early morning high $1,812.58 before falling to a low $1,801.29.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $1,795 to support a run at the first major resistance level at $1,855.

Support from the broader market would be needed, however, for Ethereum to break out from Friday’s high $1,840.69.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $1,950 before any pullback. The second major resistance level sits at $1,901.

Failure to avoid a fall through the $1,795 pivot would bring the first major support level at $1,749 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$1,700 levels. The second major support level sits at $1,688.

Looking at the Technical Indicators

First Major Support Level: $1,749

Pivot Level: $1,795

First Major Resistance Level: $1,855

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Litecoin

Litecoin rose by 0.09% on Friday. Following a 3.13% slide on Thursday, Litecoin ended the day at $199.91.

A choppy start to the day saw Litecoin saw Litecoin slide to an early morning intraday low $195.80 before making a move.

The reversal saw Litecoin fall through the first major support level at $196.

Story continues

Coming within range of the 23.6% FIB of $195, Litecoin rallied to a late morning intraday high $204.95.

Falling short of the first major resistance level at $206, however, Litecoin eased back to end the day at sub-$200 levels.

At the time of writing, Litecoin was down by 0.39% to $199.14. A mixed start to the day saw Litecoin rise to an early morning high $200.17 before falling to a low $198.73.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to move back through the $200 pivot level to support a run at the first major resistance level at $205.

Support from the broader market would be needed, however, for Litecoin to break out from $200 levels.

Barring an extended crypto rally, the first major resistance level and Friday’s high $204.95 would likely cap any upside.

In the event of an extended rally, Litecoin could test resistance at $215 before any pullback. The second major resistance level sits at $209.

Failure to move back through the $200 pivot level would bring the first major support level at $196 and the 23.6% FIB of $195 into play.

Barring an extended sell-off, Litecoin should steer clear of sub-$190 support levels. The second major support level at $191 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $196

Pivot Level: $200

First Major Resistance Level: $205

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP fell by 0.37% on Friday. Following a 0.25% decline on Thursday, Ripple’s XRP ended the day at $0.46727.

A bearish start saw Ripple’s XRP fall to an early morning intraday low $0.45902 before making a move.

Ripple’s XRP fell through the 38.2% FIB of $0.4632 and the first major support level at $0.4602.

Finding morning support, Ripple’s XRP struck a mid-day intraday high $0.47499.

Falling short of the first major resistance level at $0.4839, however, Ripple’s XRP fell back to sub-$0.47 levels and into the red.

At the time of writing, Ripple’s XRP was down by 0.34% to $0.4657. A mixed start to the day saw Ripple’s XRP rise to an early morning high $0.46672 before falling to a low $0.46557.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to move through the $0.4671 pivot level to bring the first major resistance level at $0.4752 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Friday’s high $0.47499.

Barring an extended crypto rally, the first major resistance level would cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $0.4850 before any pullback. The second major resistance level sits at $0.4831.

Failure to move through the $0.4671 pivot would bring the 38.2% FIB of $0.4632 and the first major support level at $0.4592 into play.

Barring an extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.45 levels. The second major support level at $0.4511 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.4592

Pivot Level: $0.4671

First Major resistance Level: $0.4752

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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Latest Ethereum price and analysis (ETH to USD)

Bloomberg

(Bloomberg) – It’s the invisible force rocking Wall Street: An inflation revival for the post-lockdown era that could change everything in the world of cross-asset investing.As America’s dalliance with run-it-hot economics sends market-derived price expectations to the highest in more than a decade, Bloomberg solicited the views of top money managers on their make-or-break hedging strategies ahead.One takeaway: The economics of trading from stocks and real estate to interest rates would be turned upside down if projections of runaway prices are to be believed.Yet there are clear divisions. Goldman Sachs Group Inc. says commodities have proven their mettle over a century while JPMorgan Asset Management is skeptical – preferring to hide in alternative assets like infrastructure.Pimco, meanwhile, warns the market’s inflation obsession is misplaced with central banks potentially still set to undershoot targets over the next 18 months.The comments below have been edited for clarity.Alberto Gallo, partner and portfolio manager at AlgebrisLikes hedges including convertible bonds and commoditiesWe don’t know at this point if the inflation pick-up will be sustained, but it’s a good start. What we do know is that markets are positioned completely the wrong way. Investors have been long QE assets like Treasuries, investment grade debt, gold and tech stocks. They’ve been long Wall Street and short Main Street for a decade.There will be rotation into real-economy assets such as small caps, financials and energy stocks instead of rates and credit, and that will generate a lot of volatility. We like convertible debt in value sectors which are linked to an acceleration in the cycle. We also like commodities.We are turning from an environment where central banks pushed the accelerator by keeping interest rates low while governments pulled the handbrake with austerity, to one where governments and central banks are now working together.Thushka Maharaj, global multi-asset strategist at JPMorgan Asset ManagementPrefers real assets over commodity and price-protected bondsCommodities tend to be volatile and do not necessarily offer good inflation protection. As for index-linked bonds, our study showed their long duration outweighs the pure inflation compensation this asset offers. It’s not the top asset on our list of inflation hedging.If inflation were to rise and continue rising – and we think that’s a low probability event – equity sectors that are geared toward the recovery provide a good investment profile. We also like real assets and the dollar.We are expecting volatility in inflation, especially at the headline level over the next few months, mostly over 2Q, driven by base effects, excess demand in the short term, and disruption in supply chains caused by a long period of lockdown. We see this as transitory and expect the central banks to look through the near-term volatility.Christian Mueller-Glissmann, managing director for portfolio strategy and asset allocation at Goldman Sachs Group Inc.Issues warning on index-linked bonds and goldWe found that during a high inflation backdrop, commodities, especially oil, are the best hedge. They have the best track record in the past 100 years to protect you from unanticipated inflation – one that’s driven by scarcity of goods and services, and even wage inflation like that in the late 60s. Equities have a mixed tracked record. We like value stocks as they are short duration.The biggest surprise is gold. People often see gold as the most obvious inflation hedge. But it all depends on the Fed’s reaction function to inflation. If the central bank doesn’t anchor back-end yields, then gold is probably not a good choice as real yields might rise. We see index-linked bonds as in the same camp as gold.A scenario of sustained inflation above 3% and rising is not our base case, but that risk has definitely increased compared with the previous cycle.Nicola Mai, sovereign credit analyst at PimcoSays inflation might undershoot central bank targets over next 18 monthsLooking through near-term volatility introduced by energy prices and other volatile price components, we see inflation remaining low in the near-term, with central bank inflation targets elusive over the next 18 months or so. The global economy has spare capacity to accommodate rising demand. If the spending were to be increased steadily over years, however, this would likely end up in higher inflationary pressures.We broadly like curve strategies and think U.S. TIPS offer reasonable insurance for an inflation overshoot. Commodities and assets linked to real estate should also benefit in an environment of rising inflation.Mark Dowding, chief investment officer at BlueBay Asset ManagementPares duration risk and warns on market complacencyReal assets such as property and commodities will hold value best in inflationary situations. Duration exposure on bonds is not attractive as yields should head higher over a number of years if inflation normalizes at a higher level than we have been used to. The most overlooked risk is that there is too much complacency because everyone’s inflation expectations are anchored based on what they have witnessed in the past five to 10 years.If there is a renewed economic slump, policy makers will be in a difficult position. Hence there is desire to make sure that you don’t miss targets on the downside. Like a golfer hitting a ball over a scary hazard, there is a temptation to go big! Ultimately this means that inflation outcomes should be higher not lower.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.