The Revaluation of Bitcoin Miners: Right Time, Right Place

Abstract

By chance or by destiny, Bitcoin mining companies have found themselves with a golden opportunity in their hands: they possess the most scarce asset of the 21st century—energy. Something similar happened back in the mid-19th century, railroad companies acquired millions of acres of land and rights-of-way strictly to lay down train tracks with the main idea of a business fundamentally focused on physical transportation. However, when the telegraph was invented, they realized that the optimal location to deploy electrical communication lines was right alongside those very train tracks. They already possessed the cleared terrain, the physical security, and the legal rights-of-way. And as we have seen, the structural mispricing identified in this thesis represents a finite, high-velocity arbitrage window. Where currently, Wall Street's evaluation models remain anchored to old crypto-mining frameworks, valuing these entities on cyclical hash-rate economics rather than the long-duration infrastructure value of their underlying energized grid connections.