Bitcoin (BTC) recently climbed to a three-month high of $ 46,293, with the bulls confirming that they have the upper hand over the market. Crypto traders could be in the black again and professional traders will probably want to build positions with greater leverage. But not every investor class and direct Bitcoin invest.
For institutional investors, a fund administrator sets the rules for what percentage of the portfolio is invested in which asset classes. Different companies have different risk appetites. Why investors invest in these assets rather than simply holding BTC can be explained by the above restrictions and regulatory uncertainty associated with investing directly in Bitcoin.
Why are many companies prohibited from investing directly in Bitcoin and other cryptocurrencies? But there are other ways to invest in the crypto sector.
Companies that specialize in Bitcoin mining have also made significant profits. Some of them are even listed on the stock exchange and can be a good alternative for investors who want to invest a certain part of their portfolio in BTC.
China’s recent crackdown on miners has resulted in a more dispersed mining network. There have been very many rounds of funding and expansions in publicly traded Bitcoin mining companies that can potentially benefit from the reorganization of the global Bitcoin mining network. This reorganization will probably continue for a few years. Here we name a few publicly traded companies that offer investors a Bitcoin investment.
MicroStrategy is boosting Bitcoin acceptance
The software company MicroStrategy (MSTR) and its boss Michael Saylor are known in the cryptocurrency industry for advocating Bitcoin as a store of value. In particular, the company is also known to have purchased significant amounts of Bitcoin.
MicroStrategy is helping to educate the world about the value proposition of Bitcoin and blockchain technology, and protecting itself against inflation by buying over 105,000 BTC.
As a result, MicroStrategy’s share price correlates in some ways with BTC’s price performance and moves in step with the top cryptocurrency.
As can be seen in the graph above, the MSTR rate, like Bitcoin, hit a low of $ 474 on July 20 and has since risen 65 percent to $ 781.
Bitcoin mining stocks are skyrocketing
Listed companies that specialize in mining Bitcoin and cryptocurrencies have also benefited from the rise in BTC prices.
Probably the best-known Bitcoin mining company is Riot Blockchain. The company operates warehouses full of ASIC miners. These process transactions in the network and receive Bitcoin rewards in return.
Since hitting $ 23.86 low on July 20, RIOT has risen 66 percent to hit an intraday high of $ 39.94 on August 9.
In this context: COIN course with lackluster development: More and more crypto companies want to go public
Marathon Digital Holdings (MARA) also focuses on Bitcoin mining and buying BTC.
Data from TradingView shows that MARA rose 83 percent from a low of $ 20.52 on July 20 to an intraday high of $ 37.77 on August 6. This makes MARA the Bitcoin mining share with the best development in the last two weeks.
The views and opinions contained herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading carries a risk and one should research well before making a decision.