How I invested $250,000 into Bitcoin (5 Places)

I have invested over $250,000 into Bitcoin, both directly and indirectly, in the past 6 years.

I started by just barely being able to invest $100-200 a month, but as I took on more and more side gigs and made more money, I increased my investments over time.

Let me breakdown exactly how I have invested $250,000

Direct Investing

Let’s start with the most typical of all my areas of investment in Bitcoin… direct investing. This is the best way to get exposure to Bitcoin IMO and my most preferred way.

I’d rather just own Bitcoin than anything else on this list.

So, for that reason, it’s still my biggest investment of all these, but just by a little bit.

In the past 6 years, I’ve invested about $116,000 into Bitcoin. This has bought me a little over 8 BTC in total with my cost basis at roughly $14,000 per coin.

As of right now, my investment of $116,000 into Bitcoin is worth $415K today.

Mining Hardware

I’ve spent just over $100,000 on my 19 Bitcoin miners which is $5,294 per machine on average. If I were buying these today, I could buy them for about $50,000. So I was a little early in the cycle when I started buying them. That’s okay though, I think I will more than make my money back. I’ve bought all of these and host them all with Musk Miners who I really like and recommend.

Since I started mining, I’ve spent roughly $26,000 on my electricity.

As of right now, I’ve mined just over 2.25 Bitcoin, which is worth about $95,000.

I should get pretty close to 3 full Bitcoin just before the halving happens next year.

So after electric costs, I’m about 70% of the way to making my $100,000 back with my mining efforts.

But I suspect I will break-even on these pretty soon if Bitcoin’s price keeps moving the direction it currently is.

BTC Mining NFTs

I have invested even more into BTC mining, but instead of buying more machines, I have been buying Bitcoin mining NFTs.

I have put about $8,000 into Fraction Mining and $10,000 into Alpha Shares Mining Co. 

Basically, they sell NFTs. They use the money they raise from the NFT sales to buy a container, buy mining machines, set up all the electric, etc. Then once those start actually mining, they start paying out a proportional share of the profits to NFT holders.

My Fraction BTC mining NFTs are profiting about $180 a month right now and my Alpha Shares NFTs are profiting about $220 a month. The alpha shares ones will make closer to $500 a month in the future because they also plan to do some element refining on site and will share those profits.

Publicly Traded Mining Companies

So far I have invested about $10,000 into publicly traded Bitcoin mining companies. Specifically, Marathon Digital or MARA and Riot Platforms.

I like having some diversification of asset types even within a single asset category, like Bitcoin.

Both MARA and RIOT also let me sell options on them in Robinhood. So I can not only hold them, but I can get paid to hold them. I’ve made a video on selling options if you are interested.

My Bitcoin mining stock holdings are currently worth about $20,000, so I’m up 100% on this investment so far.

GBTC in a Roth IRA

Up next is Grayscale Bitcoin Trust or GBTC.

GBTC is kinda like a spot Bitcoin ETF that we’ll likely be getting soon. And they are even pushing for GBTC to be converted INTO a spot ETF.

It’s also available at a lot of stock brokerages, so you can buy it just like any other stock.

There is some extra complication here in that GBTC can carry a premium or it can carry a discount. I have mostly been buying this while it carries a discount so that I can see more upside in the future.

I like Roth IRA accounts a lot. If you don’t know what they are, watch this video.

Basically, I want exposure to BTC in an investment account where I can enjoy the returns 100% tax-free. The beauty of a Roth IRA!

Right now this position is worth a little over $28,000. I can’t actually contribute to our Roths right now since we are over the income threshold, but when I contributed a few years ago, my timing into these positions was pretty good with most of it happening between 2020 and 2021.

If you want to hear me go into much deeper detail about all this, watch this video of mine:

Andy

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