Bitcoin Up 150% in 2023 But These Companies Did Better: Matrixport

In a notable shift in the crypto landscape, a recent report from Matrixport, a leading financial services firm, provided valuable insights into the performance of publicly listed digital asset companies.

According to the report, these entities outperform Bitcoin in terms of year-to-date returns.

Bitcoin Rises 150% As Crypto Firms Surge 266%

In the year 2023 was a good year for Bitcoin, with the Nasdaq performing at a record high. The growth of Bitcoin is reported by + 150%, in contrast to the Nasdaq + 53%.

Despite the cryptocurrency's strong performance, a collection of listed Bitcoin mining companies and other digital asset firms such as Coinbase rose even higher, posting a 266% return.

This over 110% gain over Bitcoin highlights the cyclical nature of BTC mining companies, which have a significant impact on the price fluctuations of cryptocurrencies.

Last September's Matrixport report highlighted the potential of investing in publicly listed Bitcoin mining companies. Matrixport's analysis suggests that if Bitcoin reaches a new all-time high of $70,000, investors in the asset could return about 167%.

However, a diversified portfolio of publicly listed Bitcoin mining companies such as HIV Digital, BitFarms and Iris Energy could yield even greater returns. At the time of the report, these entities were trading at a 33% discount based on Bitcoin's price, which could rise by 52%.

According to Marcus Thielen, head of research at Matrixport, regression analysis suggests that these stocks could rise 97% if bitcoin returns to $30,000, or 572% if bitcoin hits $70,000.

The Matrix report shows the increase in Bitcoin payments and the increase in Solana

Matrixport's report highlights an interesting development in the Bitcoin ecosystem, with transaction fees increasing, in part due to its increasing popularity.

This phenomenon has increased revenue for Bitcoin mining companies even when the price of BTC is falling or strengthening, mainly due to increased transaction fees.

In the broader context of the crypto market, Solana outperforms most Layer1 and Layer2 tokens, the report noted. On a risk-adjusted basis, Bitcoin has outperformed its closest competitor, Ethereum, which is up +83% year-over-year.

Looking ahead, the firm is bullish on Bitcoin's direction, predicting that the price will reach $63,140 by April 2024 and demand will peak at $125,000 by the end of the year.

Historical data, macroeconomic factors and the expected impact of the Bitcoin halving event in April 2024 support this bullish stance.