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Bitcoin Up 150+% This Year, But These Crypto Firms Are Outpacing the Major Coin

Last Updated December 19, 2023 3:18 PM
Josh Adams
Last Updated December 19, 2023 3:18 PM
Key Takeaways
  • After the crash of 2022, Bitcoin is back in a big way.
  • The coin has pumped approximately 150% since the start of the year.
  • However, crypto-related stocks have shown even greater returns.

Bitcoin (BTC) has emerged as the clear winner among assets in 2023 with returns of more 150% year-to-date, handily outpacing the Nasdaq’s 53% returns. However, Bitcoin’s ascent is also pulling up related crypto stocks at an even quicker pace.

Crypto Stocks Outperform Bitcoin Itself

A basket of publicly-listed Bitcoin mining and crypto firms analyzed by Matrixport  delivered returns of 266% in 2023 – more than double that of Bitcoin itself. This performance spotlights a high correlation between Bitcoin prices and the revenues of crypto miners and trading platforms, which charge fees on network transactions and trading volumes.

As Bitcoin rallied amid growing institutional adoption this year, transaction fees paid to miners skyrocketed as well. Bitcoin’s average transaction fee leapt from around $1 at the start of 2023 to over $15 recently – a 15-fold increase. With miners pocketing these fees, their top lines have surged even faster than Bitcoin prices.

Marathon Digital Holdings was emblematic of this dynamic. The Bitcoin mining firm’s stock catapulted 485% from $3.40 to around $20 on the back of Bitcoin’s resurgence. Hut 8 Corp similarly rode the Bitcoin wave to 204% returns this year.

Bitcoin (BTC) compared to other assets.
Credit: Matrixport.

A Good Year for MicroStrategy’s Michael Saylor

The crypto ecosystem’s bellwethers have also charged ahead. Coinbase shares are up 358% in 2023, significantly outpacing Bitcoin as investors cheered the trading platform’s improving user metrics. Meanwhile, MicroStrategy’s 335% stock gains this year continued to affirm the enterprise analytics firm’s transformation into a leveraged Bitcoin player under CEO Michael Saylor.

Saylor has made headlines since 2020 by aggressively investing in Bitcoin, transforming his company into one of the largest corporate holders of the cryptocurrency. He has made further news by sticking to the crypto even during massive price fluctuations.

Not far behind Microstrategy, Riot Platforms Inc has soared by more than 385%, moving from $3.37 to $16.40. Jack Dorsey’s Block Inc. has had a less impressive trajectory, climbing 14.29% since the start of the year from $64.64 to $73.88.

Bitcoin’s strong performance has had a positive impact on crypto-related stocks, giving traders a clearer way to benefit from the growing use of digital assets.

For crypto bulls, Bitcoin’s surprisingly good year has been the rising tide lifting all boats – mining rigs, corporate portfolios and coin traders alike. With institutional inflows still gaining steam, more open waters could still lie ahead.

 

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