Here's why Bitcoin mining stocks have been outperforming BTC price in 2021

Here's why Bitcoin mining stocks have been outperforming BTC price in 2021


Bitcoin (BTC) might have outperformed traditional financial markets regarding investment returns, but the cryptocurrency still fell behind Bitcoin-related companies.

The price of BTC climbed by about 290% year-over-year, wherein it surged from $10,695 to a little over $42,000. In comparison, shares of Marathon Digital Holdings (MARA), one of the largest North American crypto mining companies, rose by 1,641% in the same period.

MARA stock weekly price chart. Source: TradingView.comInstitutions-led pump

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More crypto mining firms outran spot BTC prices in terms of YoY returns. For instance, Canada-based Bitfarms (BITF) surged 1,736%, while Hut 8 Mining (HUT) and Riot Blockchain (RIOT) rallied by 1,010% and 913% in a year.

The performance of spot Bitcoin versus crypto-focused stocks in a year. Source: Ecoinometrics

Nick, the founder of Ecoinometrics, a crypto-focused newsletter service, called mining stocks an “obvious pick,” noting that they gave institutional investors indirect exposure to Bitcoin markets. 

“I bet a lot of institutional investors haven’t yet dipped their toes in trading spot BTC, mostly for compliance reasons,”

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