According to CryptoPotato, Apple's Vision Pro headset announcement in June led to a 55% increase in its share price in 2023, while Amazon's stock gained 79% as its AWS division pushed for AI-focused products. However, these tech giants did not make it into the top ten by yearly returns for 2023. Instead, the top performers were all Bitcoin mining stocks, with four companies making it into Wall Street's top ten performers for the year. These companies outperformed even Bitcoin's price gains of 157% for the year, indicating a strong demand by traditional investors for a safe, regulated way to get cryptocurrency exposure into their portfolios.
The four Bitcoin mining stocks that outperformed nearly the entire market were Cipher Mining (CIFR) at number three for the entire year after gaining 1,042% in 12 months, Marathon Digital (MARA) at number four with 783% ROI, CleanSpark (CLSK) up 590% at number seven on Wall Street, and Riot Blockchain (RIOT) at number ten with one-year gains of 430%. Galaxy Digital CEO Michael Novogratz commented on the trend, stating, "Crypto stocks are trading almost like a mania."
Bitcoin mining stocks performed well in 2023 due to the rally in Bitcoin prices, the upcoming halving cycle, and the SEC's potential approval of a batch of Bitcoin ETF proposals. Other factors supporting price gains for Bitcoin mining stocks this year include surging transaction fees, development milestones, and increased hash rate capacity. For example, Cipher Mining reached 7.2 exahashes per second (EH/s) in hash power after opening a new facility in Odessa, Texas, and reported a strong Q3 balance sheet according to GuruFocus. Higher profits from the Bitcoin block reward and mining fees, along with more capital inflows from Wall Street, may allow these companies to continue investing in next-generation ASIC mining machines to stay competitive in the Bitcoin hash race as the countdown to the April 2024 halving continues.
