The recently released financial report from Matrixport provides insight into the outstanding performance of public crypto companies. These firms have been making waves in the crypto world, being up more than Bitcoin (BTC) this year.
Public Crypto Firms’ Remarkable Growth
This has been a good year for Bitcoin. But it’s even better for public crypto companies, who have seen their value increase an astounding 150 % and rising above the high water-mark set by this summer when Nasdaq rose to its all time height of 53 %. A portfolio of publicly traded Bitcoin miners and Coinabe-type crypto enterprises has increased an astounding 266 %. This rate at 210 % above that of Bitcoin reinforces the fact that BTC mining companies are really just as cyclical in nature, being very dependent on cryptocurrency prices.
In fact, a report by Matrixport issued last September had already pointed out the investment value in public Bitcoin mining companies. As for Bitcoin, the report indicated that if it returns to its all-time high near $ 69,000 AUD per unit investors might book a 1.67 time increase in their holdings.
However, a portfolio in public Bitcoin mining companies like HIVE Digital, Bitfarms and Iris Energy could bear better returns. These stocks are now one-third less expensive than Bitcoin and potentially could rise 52 %.
Using regression analysis, Matrixport’s head of research Markus Thielen says that if Bitcoin falls to $30k these stocks could easily halve in price. On the other hand, if their price surges to $70. 00 then they could rocket by a whopping figure of 572 %.
Bitcoin’s Transaction Fees and Solana’s Market Performance
The report notes an equally large jump in Bitcoin transaction fees, which are partly related to renewed interest in Ordinals, providing a boost for revenue of Bitcoin mining companies. Even if the price of Bitcoin stabilizes or falls, these companies receive more revenue from increased commission fees.
Disclaimer: This article is for informational purposes only and does not offer investment advice. Given the high volatility and risks in the cryptocurrency market, investors are encouraged to perform their own research.