Matrixport still maintains a positive outlook for BTC even as the US SEC has delayed a decision on the seven applications for spot Bitcoin ETF on its desk.
According to a recent Matrixport report, the underperformance of listed crypto companies suggests that there could be a huge investment prospect in the Bitcoin (BTC) mining space that investors can take advantage of. The report went on to compare the gains that investors will see with exposure to only Bitcoin and a diversified portfolio.
BTC is currently trading at $26,474.99 but if the leading coin were to experience a compelling price surge and hit a new All-Time-High (ATH) of $70,000, investors are only sure of a gain of 167%. In the report, Matriport highlighted that investors are more likely to record huge gains if they buy a diversified portfolio of publicly listed mining companies instead.
“In our regression analysis, the 10 stocks included could be valued 97% higher if bitcoin returns to $30,000 or an impressive 572% higher if bitcoin reaches a new all-time high and trades at $70,000,” Markus Thielen, Matrixport’s head of research stated.
Some of these publicly listed BTC mining companies are Bitfarms Ltd (TSE: BITF), Iris Energy Ltd (NASDAQ: IREN), and HIVE Digital Technologies Ltd (CVE: HIVE) which is now pivoting to Artificial Intelligence (AI). At BTC’s current prices, most of these stocks are trading at a 33% discount, offering an upside of about 52%.
Matrixport Bitcoin Stock Position Still Volatile
Noteworthy, the values of these stocks fluctuate from time to time, depending on several factors. In 2021, sustainable-energy miner Bitfarms saw its stock decline 8.6% to as low as $3.9 and this was even its first day of trading publicly on the Nasdaq Exchange. It ended up closing the day trading at $3.96, a 7% drop from its opening price of $4.27.
At the time, the sharp decline was attributed to some huge sell-offs in the crypto market.
On the other hand, Iris Energy stock jumped by 21% a few months ago after its major hash rate expansion plans were announced. Considering these price changes and the volatility and risks associated with cryptocurrencies, Markus Thielen, the Head of Research at Matrixport, is still confident that a diversified portfolio of discounted publicly listed companies is a better investment option with significant returns.
He tagged this strategy the “ultimate bet for 2024”.
“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,” Thielen outlined.
Matrixport still maintains a positive outlook for BTC even as the United States Securities and Exchange Commission has moved to delay a decision on the seven applications for spot Bitcoin Exchange Traded Fund (ETF) on its desk. In a previous report, the crypto service provider said that Bitcoin price could register a significant uptrend starting in October which can extend deep into the fourth quarter.
Should this call become achieved, it could push the price of BTC toward $37,000 by year-end.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.