Bitcoin miners combined $28 billion market cap potentially undervalued compared to BTC trading volumes
Bitcoin’s daily trading volume is regularly surpassing the total market capitalization of public Bitcoin mining companies, amid concerns public miners are overvalued.
On Oct. 21, Bitcoin recorded $37 billion in spot trading volume, maintaining a trend between $20 billion and $40 billion throughout 2024. Bitcoin derivative’s open interest has also reached an all-time high of around $40 billion, with nearly double that in trading volume, according to data from Coinglass.
Despite opinions that mining stocks are overvalued from a fundamental perspective, market forces suggest these valuations may increase further, as noted by D.R. Lewis. He notes the entire public Bitcoin mining sector holds a market capitalization of approximately $28 billion. These companies collectively produce close to 30% of Bitcoin’s supply at scale.
The daily transactional volume on Bitcoin exchanges exceeding the total market cap of miners highlights a significant disparity in the Bitcoin miner market.
