Bitcoin vs BTC miner stocks: Bitfarms mining chief explains key differences
Amid Bitcoin (BTC) mining stocks like Hut 8 Mining touching multi-month lows, a major industry executive has outlined key differences between BTC investment and investing in BTC-linked stocks.
Ben Gagnon, chief mining officer (CMO) at the major Bitcoin mining company Bitfarms, believes that direct BTC investment and exposure to BTC mining stocks are two “fundamentally different” investment strategies to suit different people and interests.
“A direct investment in Bitcoin is a simple, long-term investment suitable for the vast majority of people,” Gagnon said in an interview with Cointelegraph.
On the other hand, investing in publicly-traded BTC miners is a “much more sophisticated strategy,” the exec noted. “For sophisticated investors who are looking for liquid exposure to Bitcoin in their traditional stock portfolio, the publicly traded miners are one of the best ways to do that,” Gagnon said.
The CMO went on to say that the primary value of Bitcoin miners stems from the value of BTC they mine and generate as cash flow over time, adding:
Gagnon’s remarks come amid some big BTC mining stocks recording a significantly bigger slump to compare with major cryptocurrencies like Bitcoin and Ether (ETH).
Riot Blockchain, one of the world’s largest Bitcoin mining companies, has seen its stock drop 45% year to date, trading slightly above $12 during pre-market trading at the time of writing, according to data from TradingView. Another public crypto miner, Hut 8 Mining, plummeted more than 50% year to date. The Bitfarms’ stock tumbled around 41% over the same period.
In the meantime, the prices of Bitcoin and Ether decreased 15% and 20% respectively since Jan. 1, 2022, according to data from CoinGecko.
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