While crypto mining companies provide a great proxy for BTC and other cryptocurrencies, both RIOT and MARA currently have sky-high valuations. Valuation wise, MARA’s P/B ratio is slightly lower than RIOT’s, standing at 11.3x, whereas its P/S ratio is a ludicrous 1,156x. Yet, MARA has a negative gross margin ( -169%) and its net loss increased to $5.2 million in the fourth quarter of 2020, compared to a loss of 1.2 million in prior-year fourth quarter. The company purchased 4,812 BTC at an average price of only $31,168-half today’s BTC market price. The company mined 196 Bitcoin in the first quarter, reaching a total of 5,134 bitcoins and representing a fair value of $301.9 million as of March 31. In terms of operations, MARA expects to grow rapidly this year and plans to achieve a 5.9% market share by year’s end. If it succeeds, MARA’s mining pool would be the seventh-largest bitcoin pool in the world, putting North America on the map as a digital-asset mining hub. It plans to lift its mining power to approximately 10.37 EH/s in the first quarter of 2022 from 0.71 EH/s currently. MARA’s growth prospects are much more aggressive than RIOT’s. MARA stock price has soared more than 275% so far this year to $39 per share.

So, if crypto prices continue to skyrocket, it’s reasonable that so too will RIOT’s stock price. Riot’s stock has been appreciating rapidly alongside cryptocurrency prices. But the consensus is that RIOT will be become profitable by year’s end. Also, the company has not yet generated a profit. RIOT trades at a sky-high valuation, with a Price/Book (P/B) ratio of 14.2x and Price/Sales (P/S) of 349.27x.

Riot cryptocurrency ticker