(Bloomberg) — Maybe now more so than ever, the investment strategy of loading up on pick-and-shovel makers during the middle of a gold rush is playing out in the cryptocurrency world.
Shares of Bitcoin miners such as Marathon Digital Holdings and Riot Platforms are significantly outperforming the largest digital currency, posting gains this year of more than 800% and 400%, respectively. Meanwhile, the US crypto exchange Coinbase Global and Bitcoin proxy MicroStrategy have each jumped more than 350% during the same time period. Bitcoin is up around 160% in 2023.
Bitcoin mining is an energy-intensive process in which miners use specialized computers to validate transactions on the Bitcoin blockchain and earn rewards in the token.
The surge in the stocks comes as digital-asset mining companies expand operations to increase Bitcoin production with expectations that demand for the cryptocurrency will jump if US regulators allow…
