In order to normalize the mining Revenue-to-Cost Ratio (R2CR) across market and halving cycles, we can produce a ratio between the Revenue-to-Cost Ratio and its yearly moving average. This provides an indicator reflecting cyclical Momentum for mining profitability.

Miner Revenue Momentum = R2CR / sma(R2CR,365) - 1

This ratio assesses the current aggregate Miner profitability against its long standing baseline and can be considered under the following framework:

• 🔵 Miner Revenue Momentum greater than 0 indicates the mining industry is seeing improving revenue multiples relative to the yearly average.

• 🟠 Miner Revenue Momentum less than 0 indicates the mining industry is seeing deteriorating revenue multiples relative to the yearly average.

This model is derived from the Difficulty Regression Model.