Bitcoin vs. BTC company: What is the better purchase?

Bitcoin vs. BTC company: What is the better purchase?

Bitcoin (BTC) treated its believers well in 2023 and has increased by over 80 % since the beginning of the year. However, there may be better ways for investors to benefit from the success of the financial value than to stack actual SATs.

Here you can see how some Bitcoin-related assets and companies develop alongside BTC, from financial companies to mining stocks.

mining stocks are booming

The stocks of several listed Bitcoin miners rose sharply on Friday, including ClePark (CLSK; 11.32 %), Riot Platforms (Riot; 14.33 %) and hat 8 (hat; 6.14 %). Bitcoin, on the other hand, only increased by 1.42 %.

This year alone, all three miners have at least tripled their share price. The competing mining company Iris Energy, which increased by 9.5 % on Friday, has increased by a whopping 48 % since January 1st.

The balance sheets and income of the miners are directly related to the Bitcoin price, since such companies receive a fixed number of bitcoins every ten minutes as new coins from the network.

Many of these miners made large infrastructure investments this year to prepare for the "halving"-an event that is halved in the network emissions of Bitcoin and which is generally assumed to boost the Bitcoin bull market.

While the upward movement of the industry looks promising, there can also be an even greater downward volatility than with BTC. Core Scientific (Corzq), for example, experienced a slump in the share price on a single day in October after it became known that the company was unable to repay its debts.

stock exchanges and ETFs

Another listed company that has overtaken Bitcoin this year has increased by 134 % since the beginning of the year. Although the US stock exchange supervision SEC sued the stock exchange last month, the positive price development of Bitcoin, the optimistic winning numbers of Coinbase for the first quarter and a partnership with Blackrock for a planned Bitcoin Spot ETF all of all luck for the company.

The application of Blackrock makes the markets more optimistic that a spot ETF could finally come past the SEC, which paves the way for other companies to follow this example.

This makes the Grayscale Bitcoin Trust (GBTC) a further tempting purchase: The shares of the fund have been traded significantly below the value of the underlying Bitcoin for years. If the attempt to convert it into a spot ETF, but proves to be successful, this discount is immediately brought back to parity, which creates added value for investors. The discount is currently 27 %.

Until the approval of a Bitcoin Spot ETF is Microstrategy (MSTR) with an increase of 162 % since the beginning of the year. The software company, the balance sheet of over 150,000 BTC, often spends shares to buy more Bitcoin, similar to an etf.

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