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Bitcoin (BTC) has treated its faithful well in 2023, appreciating by over 80% so far. However, there may be better ways for investors to capitalize on asset success other than just accumulating real assets.
Here’s a look at how some bitcoin-related assets and companies are performing ahead of BTC, from financial companies to mining stocks.
Mining stocks are rising fast
Shares of several publicly traded bitcoin miners jumped on Friday, including CleanSpark (CLSK; 11.32%), Riot Platforms (RIOT; 14.33%), and Hut 8 (HUT; 6.14%). In contrast, bitcoin only gained 1.42%.
This year alone, all three miners have seen their share prices increase at least threefold. Rival mining firm Iris Energy, which rose 9.5% on Friday, is up 48% since January 1.
Miners’ balance sheets and revenues are directly linked to the price of bitcoin, as such firms receive a certain number of bitcoins every ten minutes in the form of newly minted coins from the network.
Many such miners have invested in large infrastructure in preparation for this year’s “halving” – an event that halves bitcoin’s network emissions and is widely thought to catalyze a bitcoin bull market.
While the progress in the industry looks promising, it may face even more negative volatility than BTC. For example, Core Scientific (CORZQ) saw its share price drop more than 80% in a single day in October after it revealed it was unable to service its debt.
Exchanges and ETFs
Another publicly traded company that has outperformed bitcoin this year is Coinbase (COIN) – up 134% YTD. Although the U.S. Securities and Exchange Commission (SEC) sued the exchange last month, bitcoin’s positive price action, Coinbase’s optimistic Q1 earnings numbers, and a partnership with BlackRock for a planned bitcoin spot ETF, all bode well for the company. Indicates good fortune.
BlackRock’s filing has the market more optimistic that spot ETFs could eventually pass the SEC, paving the way for other companies to follow.
This makes the Grayscale Bitcoin Trust (GBTC) another attractive buy: Shares of the fund have traded at a substantial discount to the value of its underlying bitcoins for years. However, if its effort to convert to a spot ETF proves successful, that discount would immediately be restored to parity, creating additional value for investors. Currently the discount is 27%.
Until the Bitcoin Spot ETF is approved, MicroStrategy (MSTR) is one of the better options available, up 162% YTD. The software company — which has more than 150,000 BTC on its balance sheet — often issues shares to buy more bitcoin, like an ETF.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
Bitcoin (BTC) has treated its faithful well in 2023, appreciating by over 80% so far. However, there may be better ways for investors to capitalize on asset success other than just accumulating real assets.
Here’s a look at how some bitcoin-related assets and companies are performing ahead of BTC, from financial companies to mining stocks.
Mining stocks are rising fast
Shares of several publicly traded bitcoin miners jumped on Friday, including CleanSpark (CLSK; 11.32%), Riot Platforms (RIOT; 14.33%), and Hut 8 (HUT; 6.14%). In contrast, bitcoin only gained 1.42%.
This year alone, all three miners have seen their share prices increase at least threefold. Rival mining firm Iris Energy, which rose 9.5% on Friday, is up 48% since January 1.
Miners’ balance sheets and revenues are directly linked to the price of bitcoin, as such firms receive a certain number of bitcoins every ten minutes in the form of newly minted coins from the network.
Many such miners have invested in large infrastructure in preparation for this year’s “halving” – an event that halves bitcoin’s network emissions and is widely thought to catalyze a bitcoin bull market.
While the progress in the industry looks promising, it may face even more negative volatility than BTC. For example, Core Scientific (CORZQ) saw its share price drop more than 80% in a single day in October after it revealed it was unable to service its debt.
Exchanges and ETFs
Another publicly traded company that has outperformed bitcoin this year is Coinbase (COIN) – up 134% YTD. Although the U.S. Securities and Exchange Commission (SEC) sued the exchange last month, bitcoin’s positive price action, Coinbase’s optimistic Q1 earnings numbers, and a partnership with BlackRock for a planned bitcoin spot ETF, all bode well for the company. Indicates good fortune.
BlackRock’s filing has the market more optimistic that spot ETFs could eventually pass the SEC, paving the way for other companies to follow.
This makes the Grayscale Bitcoin Trust (GBTC) another attractive buy: Shares of the fund have traded at a substantial discount to the value of its underlying bitcoins for years. However, if its effort to convert to a spot ETF proves successful, that discount would immediately be restored to parity, creating additional value for investors. Currently the discount is 27%.
Until the Bitcoin Spot ETF is approved, MicroStrategy (MSTR) is one of the better options available, up 162% YTD. The software company — which has more than 150,000 BTC on its balance sheet — often issues shares to buy more bitcoin, like an ETF.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
