Investors in the cryptocurrency space are constantly exploring new strategies to maximize returns, particularly when it comes to diversifying between digital assets and related companies.

A recent discussion focused on the potential benefits of investing in bitcoin miners and companies involved in the crypto space, rather than directly holding bitcoin.

Roundtable anchor, Rob Nelson, led the conversation with George Tung, host of CryptosRUs; Gav Blaxberg, CEO of WOLF Financial; and Rob Chang, CEO of Gryphon Digital Mining. They each shared insights on how to navigate the volatile crypto market and the advantages of looking beyond bitcoin itself.

George Tung emphasized the appeal of companies like MicroStrategy, noting, "Since 2020, shockingly, MicroStrategy has outperformed even bitcoin's performance." He explained that diversifying into such companies could be a compelling strategy if they continue to outperform the digital asset.

Rob Nelson highlighted Coinbase as another option investors often consider, stating, "You’re going outside the coins and buying into the infrastructure, which fundamentally... makes sense. If you're just looking to diversify, you're taking a risk no matter what you do."

Coinbase is up 7% this year to bitcoin's 43% gain. MicroStrategy, led by CEO Michael Saylor who continues to leverage the company's balance sheet to bet on bitcoin, is up 114% this year.

Gav Blaxberg pointed out that many investors prefer options like Coinbase or mining companies due to compliance restrictions, adding, "Some of these miners are super volatile... people use them as short-term trading vehicles for a little bit more bang for their buck."

Rob Chang confirmed the higher volatility of mining stocks compared to bitcoin, explaining, "By design, there should be more torque in what we're doing... we are generating bitcoin itself." This volatility, he noted, often leads to mining companies outperforming bitcoin during certain periods.