For the second straight day in a long time, WGMI (Bitcoin Mining Company ETF) beat MSTR.

For the second straight day in a long time, WGMI (Bitcoin Mining Company ETF) beat MSTR.

The attractiveness of some mining companies exceeds MSTR at a time when the price of Bitcoin goes beyond its all-time high and generates an all-time high every day.

I explained the reason last time, but to summarize it again, MSTR has to buy into the market price when the price of Bitcoin rises, so when the price of Bitcoin reaches $180,000, it can only buy half of what it is now, so the asset growth rate against the purchase cost continues to decrease. However, mining companies have fixed production costs, so as the price of Bitcoin goes up, the profit continues to increase, so the attractiveness increases.

For reference, the mining cost for the top mining companies is between $300,000 and $70,000 (average cost is between $7 and $90,000). The profit margins for companies that mine hundreds of Bitcoin a month suddenly go up vertically, an earnings surprise comes out, and it’s reflected in the stock price.

The remaining good news for MSTR is its incorporation into the Nasdaq and S&P 500. The higher the market cap, the higher the possibility, and if it is incorporated into the index, a huge amount of passive funds will flow into MSTR. The crazy gains in PLTR this year and TSLA a few years ago came from short-term passive funds after being incorporated into the S&P 500.

P.S#1: I do not recommend both WGMI and MSTR because they are highly volatile and risky.
P.S#2: I really want you to stay away from individual mining stocks.
P.S#3: I only recommend Bitcoin.