As Bitcoin extends its rally to $35,000 with over 100% gains for 2023, let’s take a look at some crypto firms that have outperformed Bitcoin.
The world’s largest cryptocurrency Bitcoin (B T c) gave a strong breakout earlier today and reached a new high of $35,000 for 2023. With this, Bitcoin has increased its year-to-date gains by more than 100%. While Bitcoin has given strong returns to investors this year, shares of companies investing in BTC have given even better returns. Return,
Grayscale (GBTC) shares outperformed
Shares of the world’s largest bitcoin fund, Grayscale Bitcoin Trust (GBTC), have surged 196% since the beginning of the year. It thus offered a more profitable option for buyers than direct Bitcoin ownership.
Grayscale intends to provide investors with direct exposure to the Bitcoin it holds by converting its funds into a spot Bitcoin ETF. If regulatory approval is granted, each share in the fund will be directly redeemable for a fixed portion of Bitcoin.
Historically, given the uncertainty of conversion, GBTC shares have traded at a discount to Bitcoin held by Grayscale. However, a significant legal victory against the US government this year has increased the likelihood of a conversion in the eyes of the market, significantly reducing this discount. Recently, a D.C. court ordered the SEC to reconsider Grayscale’s Bitcoin spot ETF, further raising the prospects.
The reduction in share discounts coupled with the rising value of BTC has generated substantial profits for GBTC shareholders.
MicroStrategy and Coinbase join the bandwagon
Trusted by many companies other than Grayscale MicroStrategy Inc (NASDAQ:MSTR) stock as a surrogate for Bitcoin purchases. This company has outperformed Bitcoin with a year-on-year growth of 161%.
Similar to the ETF, the software firm has dedicated its balance sheet to acquiring Bitcoin, holding 158,254 BTC, currently valued at $4.8 billion and recently showing a return to profit.
Other than this, Coinbase Global Inc COIN (NASDAQ:COIN) shares rose 6% on Monday, a 135% increase year-to-date. Although the exchange has traditionally reflected the broader crypto market, its resilience against lawsuits and support from the US government blackrock inc (NYSE:BLK) as its preferred Bitcoin ETF custodian sent COIN shares to new highs in late June.
Coinbase, often the first choice for crypto newcomers, has outperformed traditional finance firms that have attempted to establish themselves as competitors in the Bitcoin market.
Apart from these, there are some companies that have performed poorly in Bitcoin and the broader crypto market. The Block (formerly Square), the fintech company co-founded by Bitcoin enthusiast Jack Dorsey, has been involved in Bitcoin trading since 2018. However, despite its ongoing efforts to further integrate with Bitcoin, SQ has experienced a 31% decrease in value. At the beginning of the year.
Similarly, PayPal Holdings Inc (NASDAQ:PYPL) has seen a 27% decline since the beginning of the year. The payments platform holds a substantial amount of cryptocurrencies on behalf of its users and not long ago it introduced its own stable coin, PYUSD.
Bhushan is a fintech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in a constant process of learning and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads adventure fantasy novels and occasionally explores his culinary skills.
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