Investing in Bitcoin mining stocks is becoming a growing and popular way to invest and speculate in the Bitcoin (BTC) ecosystem, besides just buying and holding the leading cryptocurrency in a crypto wallet.
Interestingly, this alternative investment method can, sometimes, offer higher returns than trading the digital asset in the spot market. At least, this is what data shared by CryptoRank shows.
According to Bitcoin mining stocks’ weekly performance observed on September 19, nine Bitcoin mining companies outperformed BTC in gains.
- Northern Data AG (NB2): +15.8%, with €552 million market cap;
- Iris Energy (IREN): +13.9%, with a $292 million market cap;
- Stronghold Digital Mining (SDIG): +11.5%, with $35.9 million market cap;
- Bit Digital (BTBT): +11.5%, with $207 million market cap;
- Mawson Infrastructure (MIGI): +10%, with $9.83 million market cap;
- Digihost Technology (DGHI): +9.2%, with $41 million market cap;
- Riot Platforms (RIOT): +7.8%, with $2.06 billion market cap;
- BIT Mining (BTCM): +7.7%, with $33.5 million market cap;
- CleanSpark (CLSK): +7.6%, with $721 million market cap;
- Bitcoin (BTC): +5.7%, with a $532 billion market cap.
Bitcoin mining stocks and companies are facing challenging times
Notably, these Bitcoin mining companies have a far lower market capitalization than the cryptocurrency they are mining, which can explain the higher weekly performance even in an adversarial scenario for the sector.
As reported in Finbold on August 28, 16 Bitcoin publicly traded mining companies have $4.47 billion in accumulated losses in a year.
Moreover, the Bitcoin mining difficulty adjustment reached new all-time highs of 57.12 trillion hashrate needed to find a single valid block, rewarding the lucky miner with 6.25 BTC.
The previous all-time high of 55 trillion hashes was reached on August 23, both episodes causing an increase in mining costs, which directly impacts miners’ profitability and could impact Bitcoin mining stocks’ performance in the future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.