A new report shows bitcoin mining stocks have generated greater returns than the crypto-asset since the start of the bull market. 

According to a new report from Fundstrat Global Advisors, bitcoin mining stocks have outpaced the gains for BTC.

The report, led by vice president of digital asset strategy Leeor Shimron, referred to bitcoin mining stocks as a particularly high-risk investment. Because the majority of mining companies are fairly new and young, they lack proven tracked records and have yet to create an established industry. 

The report noted a number of mining firms came to cryptocurrency in a “roundabout” way and have attracted regulatory scrutiny. Shimron claimed mining stocks had managed to reach over $1 billion in market cap, despite operating at a loss. 

Fundstrat also found the average return among the biggest publicly traded miners was 5,000%, eclipsing bitcoin’s gain of 900% since the start of the bull run. Shimron said investors were beginning to turn to mining company stocks as a “high beta play” on bitcoin. 

He told CNBC:

For investors looking to gain exposure to miners, that beta makes it a great opportunity during the middle of a roaring bull market. …There are fits and starts and pullbacks, but we still have lots of room to grow here.

Shimron said he continues to prefer bitcoin as a “long-term investment” and is anticipating an improvement from the approval of an exchange-traded fund (ETF). 

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