Apple’s share price increased by 55% in 2023 as a result of its June release of the Vision Pro headset, while Amazon’s stock increased by 79% as a result of its AWS business pushing for items with an AI focus. These internet behemoths did not, however, rank among the top 10 by yearly returns in 2023. Rather, all of the top-performing equities were those involved in Bitcoin mining, with four of these companies ranking among Wall Street’s top 10 performers for the year. These businesses did better than even Bitcoin’s 157% annual price increases, demonstrating the high demand from conventional investors for a secure, regulated method of incorporating cryptocurrency exposure into their investment portfolios.
Four Bitcoin mining stocks outperformed almost the entire market: CleanSpark (CLSK), up 590% at number seven on Wall Street; Riot Blockchain (RIOT), at number ten with one-year gains of 430%; Cypher Mining (CIFR), at number three for the entire year after gaining 1,042% in 12 months; and Marathon Digital (MARA), at number four with 783% ROI. Michael Novogratz, CEO of Galaxy Digital, made the following observation about the trend: “Crypto stocks are trading almost like a mania.”
Due to the increase in Bitcoin values, the impending halving cycle, and the possibility of the SEC approving a number of Bitcoin ETF proposals, equities related to bitcoin mining did well in 2023. Additional drivers of price increases for Bitcoin mining stocks this year include rising transaction costs, advancements in technology, and higher hash rate capacity. For instance, Cypher Mining reported a solid Q3 balance sheet and attained 7.2 exahashes per second (EH/s) in hash power following the inauguration of a new facility in Odessa, Texas, according to GuruFocus.
As the clock ticks down to the April 2024 halving, these companies may be able to continue investing in next-generation ASIC mining rigs to stay competitive in the Bitcoin hash race thanks to higher income from the Bitcoin block reward and mining fees as well as increased financial inflows from Wall Street.
