In a recent analysis, Markus Thielen, an expert at Matrixport, pointed out the significant investment opportunities present in underperforming bitcoin mining companies. On Thursday, he highlighted HIVE Digital, Bitfarms, and Iris Energy as potential candidates for substantial investor returns.
With Bitcoin currently valued at $70,000, investors could anticipate a return of 167%. However, Thielen identified an even greater opportunity in discounted stocks of the aforementioned mining firms. These stocks are currently undervalued by 33% and offer a 52% upside. Depending on Bitcoin's price fluctuations, these stocks could potentially be valued 97%-572% higher.
Thielen's recommendation comes amid the backdrop of potential delays from the U.S. Securities and Exchange Commission (SEC) in approving a U.S. listed spot Bitcoin ETF. Despite this uncertainty projected until January 2024, Thielen maintains a positive outlook on these investment opportunities.
He strongly advocates for diversification into these undervalued stocks over riskier tokens. This strategy could provide larger gains for investors while mitigating some of the risk associated with more volatile cryptocurrency investments.
This analysis underscores the growing interest in Bitcoin mining firms as potential avenues for investment, particularly as the broader cryptocurrency market continues to mature and attract institutional interest.
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