Matrixport, a leading financial services firm, has released a report highlighting the performance of public crypto companies, which have outperformed Bitcoin (BTC) in terms of returns since the beginning of the year. These companies, including Bitcoin mining firms and other crypto entities like Coinbase, have seen a portfolio increase of 266%, surpassing Bitcoin’s 150% rise.
Bitcoin has had a strong year in 2023, outperforming the Nasdaq, which saw a 53% increase. Publicly listed Bitcoin mining companies and diversified portfolios of other crypto firms have shown even more significant gains. The cyclic nature of BTC mining companies, heavily influenced by cryptocurrency prices, is evident in this performance.
Matrixport’s previous report from September highlighted the potential of investing in public Bitcoin mining companies. The analysis suggested that if Bitcoin reached its all-time high of around $70,000, investors could see a gain of approximately 167%. Diversified portfolios of public Bitcoin mining companies could yield even greater returns.
According to Markus Thielen, Matrixport’s head of research, regression analysis indicates that if Bitcoin falls to $30,000, these stocks could lose 97% of their value, but if Bitcoin reaches $70,000, they could gain an astonishing 572% in value.
The report also notes the increase in Bitcoin transaction fees due to the rising popularity of Ordinals, which has boosted the revenues of Bitcoin mining companies regardless of BTC’s price fluctuations. Furthermore, it highlights Solana‘s (SOL) performance, overshadowing most Layer 1 and Layer 2 altcoins, and Bitcoin’s better performance compared to its closest competitor, Ethereum (ETH), which increased by 83%. Matrixport predicts an optimistic future for Bitcoin, forecasting a price of $63,140 by April 2024 and an ambitious $125,000 by the end of the year, supported by historical data, macroeconomic factors, and the anticipated impact of the block reward halving in April 2024.