The report from financial services company Matrixport contains information about crypto companies that have outperformed Bitcoin since the beginning of the year. While Bitcoin has seen a 150% increase this year, crypto companies have gained 266% in value.
A portfolio consisting of Bitcoin mining companies and crypto firms like Coinbase has provided a return 110% higher than the performance of Bitcoin. This situation highlights the cyclical nature of BTC mining companies, which are largely affected by cryptocurrency prices.
Matrixport’s previous report, published in September, had revealed the potential of investing in publicly traded Bitcoin mining companies. It was stated that investors could achieve a 167% profit if Bitcoin reached its all-time high.
A diversified portfolio consisting of publicly traded Bitcoin mining companies such as HIVE Digital, Bitfarms, and Iris Energy could provide larger gains. These companies were trading at a 33% discount based on the Bitcoin price at the time of writing and could have a 52% potential increase.
According to Markus Thielen, head of research at Matrixport, regression analysis shows that if Bitcoin falls to $30,000, the value of these stocks could decrease by 97%, but if it reaches $70,000, they could gain 572% in value.