@Sakura please summarize this article, thanks uwu.
TLDR
The article discusses how Bitcoin miners have underperformed Bitcoin’s 130% rally since September, with average returns of only 64%. This questions their viability as a leveraged bet on Bitcoin.
Key Points
Bitcoin miners are not delivering enough excess returns compared to Bitcoin despite the favorable environment
The investment thesis that institutional money will want to own Bitcoin miners stocks to get exposure to BTC is not playing out
Some miners are shifting to a hybrid model of mining operations plus Bitcoin holdings, potentially creating new investment opportunities
In-depth Summary
The article starts by noting that the “miners bet” - the idea that Bitcoin miners would outperform Bitcoin itself during a bull market - is not bearing fruit. The miners aren’t doing particularly badly, but they aren’t delivering enough excess returns compared to Bitcoin despite the favorable environment.
The author then questions what this means for the miners trade and whether a new approach can be taken. They explain that the investment thesis was that in the coming bull market, institutional money would want to own Bitcoin miners stocks in order to get exposure to BTC, and the buying pressure would make the miners stocks deliver returns several times larger than Bitcoin itself.
However, the data shows that Bitcoin miners have underperformed Bitcoin’s 130% rally since September, with average returns of only 64%. This questions their viability as a leveraged bet on Bitcoin. The author notes that some miners are shifting to a hybrid model of mining operations plus Bitcoin holdings, which could potentially create new investment opportunities.
ELI5
The article is about how Bitcoin miners, the companies that help process Bitcoin transactions, have not been doing as well as Bitcoin itself lately. The author thought that when Bitcoin’s price went up a lot, the miners’ stocks would go up even more. But that didn’t happen - the miners only went up about half as much as Bitcoin.
The author is wondering if there’s a different way to invest in the miners that could work better. Some miners are trying a new approach of not just mining Bitcoin, but also holding some Bitcoin themselves. This might create new opportunities for investors.
Writer’s Main Point
The main point of the article is that the investment thesis around Bitcoin miners outperforming Bitcoin itself during a bull market is not playing out as expected. The miners are underperforming Bitcoin’s rally, which questions their viability as a leveraged bet on the cryptocurrency. The author is exploring whether new approaches, like miners shifting to a hybrid model, could create new investment opportunities.