Shares of crypto mining operators Riot Blockchain (RIOT) and Marathon Digital Holdings (MARA) are popping off on the prospects of Securities and Exchange Commission (SEC) regulators approving a spot bitcoin ETF (BTC-USD).

Yahoo Finance Reporter Madison Mills joins the Live show to discuss bitcoin miners' plans to expand operations on this pending news and how their stocks have exponentially outperformed bitcoin and other digital asset companies in 2023.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

This post was written by Luke Carberry Mogan.

Video Transcript

[VIDEO LOGO] BRAD SMITH: Investors are trying to cash in to the crypto rush ahead of a possible Spot Bitcoin ETF approval next month by buying into Bitcoin mining stocks.

So much so that miners are outperforming crypto exchanges and Bitcoin this year.

For more on this, we've got Yahoo Finance's Madison Mills here.

Maddie, what do we know about this and why this move is taking place right now?

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MADISON MILLS: Yeah, guys.

I remember a few years ago, Dan Ives explaining to me that during a gold rush, you don't want to buy the gold.

You want to buy the picks and shovels.

And that's exactly what we're seeing in this Bitcoin miner stock outperformance.

These gains are just remarkable here.

You've got Marathon Digital Holdings up 800%, Riot Platforms up 400% year-to-date.

Both of those obviously outperforming those digital currencies themselves given some of the gains there.

Bitcoin itself having 160% increase in 2023.

Now, what's interesting is this is an energy intensive process.

It involves a lot of specialized computers.

So miners are expanding their operations to boost Bitcoin production.

That's of course, in anticipation of that regulatory approval of the Spot Bitcoin ETF, which could lead to a lot more demand for that Bitcoin itself.

And as you can see here, a lot of firms on the street awaiting that approval.

So these firms are anticipating that, and especially Marathon Digital and Riot anticipating that.

And they're investing in the technology that would be needed to support that increase in demand so that they're ready when the time comes.

BRIAN SOZZI: And this may not be an end of January thing or end of February in terms of the Spot Bitcoin ETF approval.

I mean, we're getting ready to head out to the World Economic Forum in Davos.

And a lot of folks that we're talking to in the lead up think this could happen within two weeks, Brad.

BRAD SMITH: And I think the other thing is what could take place in April of 2024, which is the halving.