TL; DR
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One way to invest in BTC, without investing in BTC, is to buy publicly traded BTC mining stocks – but that comes with pros and cons.
Full story
We like to write about ways to invest in BTC, without investing in BTC.
For example:
We have written about BTC ETFs many times in the past (e.g the last article).
We’ve written about MSTR (also known as ‘BTC proxy companies’) who essentially let you invest in BTC because they have so much BTC in their coffers that their stock price is virtually pegged to it at this point.
But what we’ve never written about is investing in publicly traded BTC mining operations.
There are currently 14 different publicly traded BTC mining companies in the US.
Of these 14 companies, according to a report published yesterday by JPMorgan, their total market capitalization increased by 29% (by $6.4 billion USD) between June 30 and July 15.
Meanwhile, BTC itself rose just 6% over the same period.
So far the story sounds pretty good, but be warned!
The problem with investing in publicly traded BTC mining stocks is that, unlike BTC, they have many more variables.
For example, if the city simply raises the price of electricity, it directly cuts into a company’s profit margin.
Regulatory changes and technological obsolescence are also constant.
So while BTC mining stocks may outperform the value of BTC itself in the short term, there are many factors to consider when deciding the best way to get a return on your BTC investment.
Or maybe the trick is a diversified portfolio 🙃