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Matrixport Predicts Listed Bitcoin Miners as Top Contenders for 2024 Investment

Sep 29, 2023 at 12:26 pm

The report underscores the potential for investors to achieve significant returns through the formation of a diversified portfolio consisting of publicly traded mining companies. According to Matrixport, a provider of cryptocurrency services, the subpar performance of publicly listed digital asset firms has opened up attractive investment opportunities within the Bitcoin (BTC) mining sector.

According to the report, if Bitcoin were to reach a new all-time high of $70,000, investors would only realize a modest return of 167%. However, more substantial gains could be unlocked by delving into a diverse portfolio of publicly listed Bitcoin mining companies, including entities such as HIVE Digital (HIVE), Bitfarms (BITF), and Iris Energy (IREN).

The report highlights that these stocks are currently trading at a discounted rate of 33% relative to Bitcoin's current price, offering a potential upside of 52%.

Markus Thielen, the head of research, stated: 

"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 achieves a new all-time high and trades at $70,000."

Thielen also advised that, in the interest of diversification, exploring investments in a selection of discounted Bitcoin mining stocks or tokens exhibiting substantial growth potential could potentially prove to be a profitable strategy for 2024. However, he cautioned that tokens come with a significantly higher level of risk compared to listed stocks.

Despite indications that the U.S. Securities and Exchange Commission (SEC) might postpone the approval of a U.S. listed spot BTC exchange-traded fund (ETF) until January 2024, Matrixport maintains an optimistic outlook for Bitcoin.

Read more: SEC Chair Gensler Delivers Cryptocurrency Insights During Congressional Hearing

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