{"id":345429,"date":"2021-09-28T17:36:07","date_gmt":"2021-09-28T14:36:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021\/"},"modified":"2021-09-28T17:36:07","modified_gmt":"2021-09-28T14:36:07","slug":"heres-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021\/","title":{"rendered":"# Here&#8217;s why Bitcoin mining stocks have been outperforming BTC price in 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a348b17f3a86\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a348b17f3a86\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021\/#Institutions-led_pump\" >Institutions-led pump<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021\/#Scaling_and_hodling\" >Scaling and hodling<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Here&#8217;s why Bitcoin mining stocks have been outperforming BTC price in 2021 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) might have outperformed traditional financial markets regarding investment returns, but the cryptocurrency still fell behind Bitcoin-related companies.<\/p>\n<p>The price of BTC climbed by about 290% year-over-year, wherein it surged from $10,695 to a little over $42,000. In comparison, shares of Marathon Digital Holdings (MARA), one of the largest North American crypto mining companies, rose by 1,641% in the same period.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/5c22c637-282a-42d2-b1e7-24382572ab39.png\"><figcaption style=\"text-align: center;\"><em>MARA stock weekly price chart. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Institutions-led_pump\"><\/span>Institutions-led pump<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>More crypto mining firms outran spot BTC prices in terms of YoY returns. For instance, Canada-based\u00a0Bitfarms (BITF) surged 1,736%, while Hut 8 Mining (HUT) and Riot Blockchain (RIOT) rallied by 1,010% and 913% in a year.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/2a16d69b-1da8-472e-bb36-cc769daba00e.png\"><figcaption style=\"text-align: center;\"><em>The performance of spot Bitcoin versus crypto-focused stocks in a year. Source: Ecoinometrics<\/em><\/figcaption><\/figure>\n<p>Nick, the founder of Ecoinometrics, a crypto-focused <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter service, called mining stocks an &#8220;obvious pick,&#8221; noting that they gave institutional investors indirect exposure to Bitcoin markets.\u00a0<\/p>\n<p>&#8220;I bet a lot of institutional investors haven&#8217;t yet dipped their toes in trading spot BTC, mostly for compliance reasons,&#8221; the analyst <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ecoinometrics.substack.com\/p\/ecoinometrics-tracking-bitcoin\">explained<\/a> in an article published Sept. 27, adding:<\/p>\n<blockquote><p>&#8220;It is a bit like the gold miners when back in the days it was complicated to get your hands on physical gold. So the play for these guys has probably been, stay away from spot but trade the stocks.&#8221;<\/p><\/blockquote>\n<p>The statements surfaced as Morgan Stanley reported in its securities filings that it had more than doubled its exposure in Grayscale Bitcoin Trust (GBTC), a traditional investment vehicle for digital asset investors. <\/p>\n<p>In detail, the\u00a0Morgan Stanley Europe Opportunity Fund\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/860720\/000175272421208580\/NPORT_MGAZ_6853446861.htm\">owned<\/a> 58,116 shares of the Grayscale Bitcoin Trust, or GBTC, as of July 31.<\/p>\n<p>In July, Cathie Wood&#8217;s Ark Invest also purchased more than 450,000 GBTC shares worth about $1.4 million. In line with mining stock performances, these investments showed an increase in institutional <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite for crypto-focused yet traditional investment products.<\/p>\n<p>Nick added that investors would keep adding their capital into crypto mining stocks as long as they don&#8217;t see a viable alternative, such as an exchange-traded fund in the U.S.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Scaling_and_hodling\"><\/span>Scaling and hodling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Demand for mining stocks grows higher as a majority of firms focus on two important prospects: scaling and holding.<\/p>\n<p>For instance, Marathon <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ir.marathondh.com\/news-events\/press-releases\/detail\/1256\/marathon-digital-holdings-announces-bitcoin-production-and\">reported in its non-audited August report<\/a> that it had received\u00a021,584 top-tier Bitcoin mining ASIC machines from Bitmain in 2021, adding that it is due to get 5,916 more currently in transit. As a result, the company expects to run at least 133,000 Bitcoin mining machines by the middle of next year.<\/p>\n<p>Meanwhile, Marathon noted that it now holds 6,695 BTC, including the 4,812.66 BTC it purchased in Jan 2021. As a result, the fair market value of Marathon\u2019s current bitcoin holdings is now around $333.4 million, giving the firm adequate capital to scale up its productions in the future.\u00a0<\/p>\n<p>Similarly, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.globenewswire.com\/news-release\/2021\/09\/08\/2293853\/0\/en\/Riot-Blockchain-Announces-August-Production-and-Operations-Updates.html\">Riot Blockchain&#8217;s August report<\/a> showed a 451% increase in its Bitcoin mining capacity on a year-over-year basis, helped by its fleet of 22,050 miners, with a hash rate capacity of 2.2 exahash per second (EH\/s). The firm mined 441 BTC in Aug 2021.<\/p>\n<p><strong><em>Related: Miners have accumulated $600M worth of Bitcoin since Feb<\/em><\/strong><\/p>\n<p>Riot noted that it plans to have 25,650 Bitmain machines in operation by early September. It is currently building a new mining facility in Texas.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/here-s-why-bitcoin-mining-stocks-have-been-outperforming-btc-price-in-2021\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here&#8217;s why Bitcoin mining stocks have been outperforming BTC price in 2021 &#8221; Bitcoin (BTC) might have outperformed traditional financial markets regarding investment returns, but the cryptocurrency still fell behind Bitcoin-related companies. The price of BTC climbed by about 290% year-over-year, wherein it surged from $10,695 to a little over $42,000. In comparison, shares&#8230;<\/p>\n","protected":false},"author":1,"featured_media":345430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvNGMwNmQzZjAtNDJjNS00NGQyLWExMjgtNjM3N2U4OTBkNTA2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81951,74989,74937,74982,74863,81262,81373,75462,74939,75150,75042,78423,108601,73711,73785,70359],"class_list":["post-345429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-mining","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-cryptomarket","tag-cryptomining","tag-hash-rate","tag-market-analysis","tag-market-update","tag-mining","tag-mining-pools","tag-stock-investment","tag-investments","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/345429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=345429"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/345429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/345430"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=345429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=345429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=345429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}