Cryptocurrency mining companies are “literally printing money,” says analyst
DA Davidson analyst Christopher Brendler believes cryptocurrency mining companies are ‘literally printing money,’ according to the portal. CoinDesk.
Earlier this year, his firm conducted a study on four companies that mine bitcoin: Core Scientific, Marathon Digital, Riot Blockchain, and Hut 8 Mining. All of them obtained buy qualifications for their shares.
“Combined with better access to capital that maintains its leadership, we expected these stocks to appreciate much more as earnings estimates crushed short-term estimates, even if bitcoin consolidates,” Brendler wrote.
The expert considers that the current moment is a “great opportunity” for the miners of the United States considering the sustained rally that bitcoin has experienced, which has exceeded $ 62,000 per unit, and the extensive bans on cryptocurrencies imposed in China.
The value of the shares of companies dedicated to this sector, which are highly correlated with the price of bitcoin, has experienced a steady increase that year, as the price of the world’s largest cryptocurrency more than doubled.
“The actions of [estas] Bitcoin mining companies are highly correlated (roughly 70%) with bitcoin prices for good reason, as not only does this digital asset directly drive reported revenue, but all four are also trying to hold as much fresh bitcoin as possible. minted on their balance sheet, “added Brendler.
DA Davidson analyst says he expects “huge” gains across the industry, which he says is on the rise. Also, he mentions that, if he had to invest in a cryptocurrency mining company, he would opt for Hut 8 Mining.