The broker has increased its target for bitcoin by the end of the year to $90K, up from $80,000. Bernstein now anticipates a 7% decrease in hashrate following the halving of the supply due to shutdowns. Bitcoin miners pose appealing buy opportunities for equities investors who are interested in gaining exposure to cryptocurrency.
As stated in a research report published on Thursday, Bernstein increased its forecast for the price of bitcoin (BTC) at the end of the year to $90K, up from $80K. Additionally, the broker upgraded its forecasts for mining stocks that are included in its coverage.
We continue to find bitcoin miners interesting buys for equities investors who are looking for exposure to the cryptocurrency cycle, as stated by analysts Gautam Chhugani and Mahika Sapra. "With a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues," they noted.
According to what the authors expressed in their writing, "We assume a 7% reduction in hashrate post halving from shutdowns versus 15% earlier.
For the purpose of mining and processing transactions on a blockchain that uses proof-of-work, the term "hashrate" refers to the total combined computational power that is being utilized. What is known as the quadrennial reward halving is the process of halving mining rewards in half. It is anticipated that the subsequent halving will take place around the middle of April.
With CleanSpark (CLSK) receiving an outperform rating, Bernstein increased its price objective for the company to $30 from $14.20. In addition, it increased its price target for Marathon Digital (market-perform) to $23 from $14.30,
while it decreased its price target for Riot Platforms (RIOT), which was rated as outperforming, to $22 from $22.55, respectively.
As of Wednesday, CleanSpark was trading at $20.25, Riot was trading at $12.40, and Marathon was trading at $22.43.
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