Bitcoin may be rallying, but Bitcoin mining stocks have flown this year, producing an average yield of 149%.
It’s been a stellar week for Bitcoin: over the past 7 days, the crypto has gained around 20%, touching $35,066 on October 24.
However, numbers reveal that Bitcoin mining stocks listed on registered exchanges are still outperforming Bitcoin, even amidst a BTC rally.
Bitcoin has gained a healthy 80% this year, but listed mining stocks have yielded an average return of 149%.
Over the past 24 hours, Riot Platforms (RIOT), Bitfarms (BITF), and Marathon Digital (MARA) are up by 10%, 7% and 11.9% respectively.
Over the same period, Bitcoin has lost 0.8%, likely due to waning speculation surrounding BlackRock’s spot Bitcoin ETF.
Year-to-date data further exemplifies the strong performance of Bitcoin mining stocks this year.
Cipher Mining, which holds a market cap of $607.2 million, has gained an impressive 356% since October last year.
Riot Platforms has gained 163%, followed by Iris Energy, which gained 140%.
Other strong performers include Marathon Digital (+120%), Bitfarms (+135%) and Hive Blockchain (+106%)
Mining stocks may be more lucrative than Bitcoin: Matrixport
In September, a new report by cryptocurrency financial services company Matrixport claimed that investors may see greater returns by investing in listed Bitcoin mining companies in 2024, rather than Bitcoin itself.
This appears to be materialising already.
The report outlines that if Bitcoin reaches a new all-time high of $70,000, investors will see a return of 167% by holding Bitcoin directly. By investing in a range of listed mining stocks however, investors could produce yields of up to 572%, if the all-time high is met.
Markus Thielen, head of research at Matrixport, stated, “In our regression analysis, the 10 stocks included could be valued 97% higher if Bitcoin returns to $30,000 or an impressive 572% higher if Bitcoin reaches a new all-time high and trades at $70,000.”
He added, “For the sake of diversification, opting to invest in a selection of discounted bitcoin mining stocks or tokens with substantial growth potential could possibly represent the ultimate bet for 2024,”
The report outlined that mining stocks are currently trading at a 33% discount relative to Bitcoin’s current price. This discount, combined with the potential for Bitcoin to reach higher price levels, positions these stocks for a 52% upside.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.