Crypto Stocks Outperform Bitcoin

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Bitcoin has experienced a notable rally this year, with a year-to-date gain of over 160%. However, it is still down about 36% from its all-time high in November 2021.

Remarkably, many crypto-related stocks have outperformed bitcoin, with some posting year-to-date gains twice as large as that of the leading cryptocurrency.

Coinbase and MicroStrategy Lead the Way

According to FactSet data, shares of crypto exchange Coinbase (COIN) have surged 289% so far this year. Similarly, MicroStrategy’s stock (MSTR) has risen by an impressive 305% during the same period.

Other notable performers include Riot Blockchain (RIOT), whose shares have soared by 340% in 2023, Marathon Digital Holdings (MARA), which has witnessed a remarkable increase of 362%, and Ebang International Holdings (EBON), with an ascent of over 180%.

Matt Hougan on Crypto Stocks’ Success

To shed light on the reasons behind the outperformance of crypto stocks compared to bitcoin, I spoke with Matt Hougan, the Chief Investment Officer at Bitwise Asset Management.

Hougan emphasized that many crypto companies, particularly crypto miners, possess inherent leverage in their businesses. He explained, “Crypto miners naturally deliver a leveraged return on the price of bitcoin due to margin expansion and financing activity.”

Furthermore, Hougan noted that many owners of crypto stocks are professional investors who feel less comfortable holding digital assets directly. Unlike strong believers in digital assets who will hold bitcoin regardless of its performance, these investors have adopted a different approach.

“I think it’s reasonable to say that during the collapse of FTX and a significant drop in the bitcoin price at the end of 2022, these users likely fled the market,” said Hougan.

It’s worth mentioning that bitcoin dipped close to $15,000 in November of last year following the collapse of the FTX cryptocurrency exchange.

As a result of the investors’ move away from crypto stocks, these equities became undervalued relative to their fundamentals, according to Hougan’s observations.

In conclusion, while bitcoin has had an impressive run, crypto stocks have managed to surpass its performance due to factors such as inherent leverage in their businesses and the behavior of professional investors.

Crypto Stocks and Bitcoin Rally

“Part of the outperformance of crypto stocks this year is just catching up to that reality as those investors re-enter the market,” said an expert.

El Salvador’s Bitcoin Holdings

El Salvador’s President, Nayib Bukele, announced on X (formerly known as Twitter) that the country’s bitcoin holdings are showing a profit. According to a screenshot shared by Bukele, the country’s bitcoin portfolio has increased by approximately 2.8%, equivalent to $3.6 million since 2021. Over time, El Salvador has accumulated over $130 million worth of bitcoin. Despite the profit, Bukele stated that there are no plans to sell the holdings and that their long-term strategy remains unaffected by price fluctuations.

What’s Next for Bitcoin?

Traders are closely watching $48,000 as bitcoin’s next resistance level, which was a local peak reached at the end of March 2022, according to Julius de Kempenaer, senior technical analyst at In the event of a setback, bitcoin faces a resistance level at around $38,000.

Crypto in a Snap

Bitcoin has experienced a 15.3% increase in the past seven days and is currently being traded at approximately $44,000 as per CoinDesk data. Ether (ETHUSD) also rose by 11% during the same period and is now valued at around $2,271.


  • “As bitcoin’s price surges, crypto’s power in Washington withers”
  • “Jamie Dimon lashes out against crypto: ‘If I was the government, I’d close it down'” (CNBC)
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