Matrixport, a crypto service provider, believes that investing in discounted publicly listed mining companies may yield better returns than investing solely in Bitcoin. According to a recent report by Matrixport, the underperformance of listed crypto companies presents an attractive investment opportunity in the Bitcoin mining space. The report compares the potential gains from investing only in Bitcoin versus a diversified portfolio of publicly listed mining companies.
The report states that if Bitcoin were to reach a new All-Time-High (ATH) of $70,000, investors would see a gain of 167%. However, Matrixport argues that investors are more likely to achieve substantial gains by purchasing a diversified portfolio of publicly listed mining companies. The report highlights that these stocks could be valued 97% higher if Bitcoin returns to $30,000, or an impressive 572% higher if Bitcoin reaches $70,000.
Matrixport’s head of research, Markus Thielen, explained, “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.”
Some of the publicly listed Bitcoin mining companies mentioned in the report include Bitfarms Ltd, Iris Energy Ltd, and HIVE Digital Technologies Ltd. These stocks are currently trading at a 33% discount, offering the potential for a 52% upside at Bitcoin’s current prices.
Volatility of Matrixport’s Bitcoin Stock Position
It is important to note that the values of these stocks can fluctuate due to various factors. In 2021, Bitfarms saw its stock decline by 8.6% on its first day of trading publicly on the Nasdaq Exchange. The stock closed the day with a 7% drop from its opening price. Conversely, Iris Energy’s stock surged by 21% after announcing major hash rate expansion plans.
Despite the volatility and risks associated with cryptocurrencies, Matrixport remains confident in the potential returns of a diversified portfolio of discounted publicly listed companies. The company maintains a positive outlook on Bitcoin, even though the United States Securities and Exchange Commission has delayed a decision on several applications for a Bitcoin Exchange Traded Fund (ETF).
If Matrixport’s call for a significant uptrend in Bitcoin starting in October comes to fruition, the price of BTC could potentially reach $37,000 by the end of the year.
Frequently Asked Questions (FAQ)
What is Matrixport?
Matrixport is a crypto service provider that offers various financial products and services to investors.
Why does Matrixport believe investing in discounted crypto stocks is better than Bitcoin?
Matrixport believes that investing in discounted publicly listed mining companies may offer higher returns compared to investing solely in Bitcoin. The company argues that a diversified portfolio of mining stocks has the potential for greater gains if Bitcoin prices rise.
Which publicly listed Bitcoin mining companies does the report mention?
The report mentions Bitfarms Ltd, Iris Energy Ltd, and HIVE Digital Technologies Ltd as examples of publicly listed Bitcoin mining companies that are currently trading at a discount.
Is investing in Bitcoin mining stocks riskier than investing in Bitcoin?
Investing in Bitcoin mining stocks can carry its own set of risks, including fluctuations in stock prices and the overall volatility of the cryptocurrency market. However, Matrixport believes that a diversified portfolio of discounted mining stocks offers the potential for significant returns.
What is the ultimate bet for 2024 according to Matrixport?
According to Matrixport’s head of research, Markus Thielen, investing in a selection of discounted Bitcoin mining stocks or tokens with substantial growth potential could represent the ultimate bet for 2024.
Matrixport suggests that investing in a diversified portfolio of discounted publicly listed mining companies may be a better investment option than solely investing in Bitcoin. The company’s report highlights the potential gains from such an investment strategy, with stocks valuing significantly higher if Bitcoin prices rise. While the values of these stocks can fluctuate, Matrixport remains confident in the potential returns of this investment approach. The company also maintains a positive outlook on Bitcoin’s future performance, despite delays in the approval of Bitcoin Exchange Traded Fund applications by the United States Securities and Exchange Commission.