The Bitcoin Mining Stock That's Too Dependent on One Thing

The traditional way to invest in Bitcoin (CRYPTO: BTC) is to buy it directly, either through a crypto exchange or a stockbroker that offers it. An increasingly popular alternative is to invest in companies that hold Bitcoin, such as Bitcoin mining companies or Bitcoin treasury companies. Strategy (NASDAQ: MSTR), MARA Holdings (NASDAQ: MARA) and Cipher Mining (NASDAQ: CIFR) are a few examples.Some of these companies even end up outperforming Bitcoin. As of September 22, Strategy has gained 1,650% over the last three years, compared to Bitcoin's 522% return. However, there's also a serious risk to these types of businesses.Companies that have a large amount of Bitcoin on their balance sheets are reliant on its price increasing, or at least holding steady. If Bitcoin crashes, which it tends to do every few years, it could bring those companies down with it.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool