In November, Beth Kindig shared her views on bitcoin miners, Microsoft and other tech stocks on the Fox Business show “Making Money with Charles Payne.” Below are video previews of her discussion and an overview of what the two of them discussed.
Beth Kindig is known for her stock-picking skills, focusing primarily on the tech sector. Roku, for example, has given four-digit returns to its readers. Other prominent winners include Nvidia, Zoom, and Bitcoin, which have all provided triple-digit returns from Beth’s free newsletter.
New sizzling stocks
One of the I/O Fund’s top holdings is Bitcoin. As we continue to see rapid adoption and more accessibility on a global scale, we currently like the risk/reward with Bitcoin miners. We have discussed this trend and our picks in the sector with our premium members.
In the interview above, Beth discusses that China’s losses will be gains for the United States.
Furthermore, investing in miners is, we believe, a leveraged way to play the crypto space. It’s closely correlated to the Bitcoin’s movements, so as the larger trend in Bitcoin continues up, we expect the miners to follow, yet at a higher rate of change. These plays come with levels of realized volatility that relegate these positions to small satellite plays, with an expiration date as well as stop underneath, just in case we are too early.
We think that this space will eventually attract a lot of institutional interest as the migration of miners to the US continues. As investing in crypto becomes more desirable, and regulations continue to make it difficult for portfolios to trade, mining infrastructure allows institutions to exposure to Bitcoin through the public markets. We like that China is giving away a profitable business that the United States, primarily Texas, can host. We have traded Bitcoin miners in the past year and were able to booked a 44% gain in less than a month. We continue to closely watch this sector for any companies that are outperforming. We are holding another miner with a minimal loss of 6%, at time of writing.
A brief snapshot of the bitcoin miner’s recent earnings
Marathon Digital Holdings released its Q3 results on November 10th. The company’s revenue accelerated an impressive 6,091% YoY and 76% QoQ to $51.7M. Despite this, it missed consensus revenue estimates by $15.67M. The adjusted earnings per share (EPS) came in at $0.85 and beat analysts' estimates by $0.42. The company produced 1,252 bitcoins in the recent quarter, up 91% QoQ. For the next quarter, the analysts estimate revenue to grow 3,530% to $96.05M and adjusted EPS is expected to come at $0.65. For the most part, the four digit growth is priced in and we will need to see what MARA provides for forward guidance.
Another bitcoin miner, Riot Blockchain, released its Q3 results on November 15th. The company’s revenue jumped 2532% YoY to $64.8M. It missed the consensus revenue estimates by $2.35M. The GAAP net loss per share came at ($0.16) and missed estimates by 50 cents. The company produced 1,292 bitcoins in the recent quarter, up 482% YoY and up 91% QoQ. The analysts estimate revenue to grow 1,710% YoY to $95.57M for the next quarter and GAAP EPS is expected to come at $0.50. The company recently raised its hash rate to 9.0 EH/s from 8.6 EH/s.
