According to a report from crypto services provider Matrixport, digital asset companies listed on the stock market haven’t been performing well. This situation suggests that there could be some excellent investment opportunities in the world of bitcoin (BTC) mining.
For instance, if the price of bitcoin were to reach a new all-time high of $70,000, an investor would only gain a 167% return, as per the report. However, the report suggests that investors might achieve even better results by investing in a diversified portfolio of publicly traded bitcoin mining companies like HIVE Digital (HIVE), Bitfarms (BITF), and Iris Energy (IREN).
Currently, these mining company stocks are trading at a 33% discount based on bitcoin’s current price, and they have the potential for a 52% increase in value, according to the report. This indicates a promising investment opportunity in the bitcoin mining sector.
Markus Thielen, the head of research at Matrixport, shared some intriguing insights. He explained that their analysis showed promising potential for ten specific stocks. If Bitcoin were to rise back to $30,000, these stocks could become 97% more valuable. Even more impressively, if Bitcoin were to reach an all-time high of $70,000, these stocks could surge by a remarkable 572%.
Thielen then made a suggestion for diversification in your investment strategy. He mentioned that, for the sake of spreading risk, it might be a wise move to consider investing in a mix of discounted Bitcoin mining stocks or tokens with significant growth potential. However, he also pointed out that tokens, compared to publicly listed stocks, carry a higher level of risk.
Despite some indications that the U.S. Securities and Exchange Commission (SEC) might delay the approval of a U.S.-listed spot BTC exchange-traded fund (ETF) until January 2024, Matrixport remains optimistic about Bitcoin’s future. They see the potential for growth, and this suggests that, in their view, Bitcoin still holds promise as a valuable investment option moving forward.
