The recent sell-off in the shares of cryptocurrency miners have created buying opportunities across the group, Christopher Brendler, an analyst at Wall Street investment banking firm DA Davidson, wrote in a research note dated Nov. 29.
Mining stocks have tumbled in recent weeks after a rally in October, and are logging a strong start to November. The recent drop corresponds with price declines in bitcoin and ether, suggesting that many investors still view mining firms as a public-market proxy for investing in leading cryptocurrencies.
“Although the slightly more risk-off market and BTC pullback may have contributed, we also think the group moved a little too much too fast,” Brendler said, adding that fundamentals for the miners “remain fantastic.”
Bitcoin’s worth fell to close $53,000 final week, after reaching as excessive as $68,000 earlier this month. Shares of Marathon Digital, one of many largest bitcoin miners, additionally adopted the identical pattern this month. Bitcoin has recovered since then and was buying and selling close to $57,000 as of press time.
Brendler highlighted Core Scientific, which is planning to go public through a particular objective acquisition firm, as his favourite “buy-and-hold” miner and likewise sees potential upside within the shares of Hut 8 and Argo Blockchain.
Within the crypto miners, shares of Cipher Mining, BitFarms and BIT Digital have been among the many outperformers on Monday, whereas others together with Marathon Digital, Hut 8, Hive Blockchain have been additionally optimistic.