Bitcoin outperformed private investing in crypto-mining firms, even with 80% decline from peak price

Quick Take

  • Private investments in some of the largest crypto-mining companies (Bitfury, Bitmain, and Canaan) have underperformed outright ownership of BTC at the time of private funding to today (BTC outperformed Bitfury 5x — +100x and Canaan by ~2x)
  • Bitmain private investment rounds have now raised ~$1.5 billion within the past 12 months, but given the failed IPO and executive shakeup, the likelihood of Series B and C investors outperforming BTC on paper during the current bear market (2018/19) has been reduced greatly

In the wake of Bitmain’s IPO lapsing, we took a look at private funding rounds into some of the largest crypto mining companies to measure potential returns vs. outright Bitcoin performance during the same time horizon. Outside of Canaan, which is reportedly still exploring an IPO in either Shanghai or the U.S., all major crypto mining IPO applications have lapsed their filling.