Mining-company stocks outpaced Bitcoin fivefold

Over the last 12 months, Bitcoin’s price rose by 900%, while the shares of four public mining companies rose by 5,000%. CNBC reports, citing data from Fundstrat Global Advisors.

The companies are Marathon Digital Holdings, Riot Blockchain, Hive Blockchain and Hut 8.

Researchers noted that every 1% move in Bitcoin’s price shifts mining stocks by 2.5% in the same direction. Accordingly, in a bear market, the securities will be hit hard, Fundstrat says.

Chart of mining stock gains as Bitcoin rises. Data: Fundstrat Global Advisors.

Fundstrat vice president Lior Shimron pointed to investors’ desire to access Bitcoin. In his view, public mining companies have become one of the ways to do this while the Securities and Exchange Commission denies approval for a Bitcoin-based exchange-traded fund (ETF).

As of February 16, US-listed shares of Bitcoin-mining equipment manufacturers and mining firms showed double-digit gains. Some hit all-time highs.

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