Crypto analyst still bullish on Bitcoin miners, names 4 top stock picks

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Falling cryptocurrency prices have made life difficult for Bitcoin BTC/USD miners in 2022, but Canaccord Genuity analyst Joseph Vafi said Monday that he is maintaining his optimistic long-term outlook for crypto miners Argo Blockchain ADR ARBK, HIVE Blockchain Technologies Ltd HIVE, Hut 8 Mining Corp HUT and Iris Energy Ltd. IREN.

Critical Mining Efficiency: In its monthly digital asset mining update, Vafi said production was up among top miners despite falling crypto prices. In May, North American miners ramped up production, while Chinese miners also came back online.

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Vafi also said there are factors helping to offset pressures on miners’ profits and margins. As less efficient miners shut down production, more efficient miners who can remain profitable at breakeven Bitcoin prices between $7,000 and $9,000 take control of this market share. Additionally, Vafi said prices for specialized Bitcoin application-specific integrated circuits (ASICs) are beginning to decline, providing miners with strong balance sheets the opportunity to scale up production at a much lower cost than a year ago. six months.

How to play it: Vafi said the four bitcoin miners covered by Canaccord all have access to capital and maintain consistent production as they invest in building future mining capacity.

“Clearly, BTC spot prices have yet to decouple from risky stocks, but we still see attractive long-term characteristics for the digital asset,” Vafi said.

Canaccord Genuity has the following quotes and price targets for the mentioned crypto miners:

  • Argo Blockchain: Buy rating, target $13
  • HIVE Blockchain: Buy rating, target $14
  • Hut 8 Mining: Buy rating, target $6
  • Iris Energy: Buy rating, target $14

Benzinga’s opinion: Bitcoin and other cryptos have seen multiple declines of over 80% in their history, and the current pullback has Bitcoin prices trading nearly 70% off their late-2021 highs. equilibrium prices below $9,000, these highly efficient prices miners could apparently still make a profit even if Bitcoin prices fell another 50% from current levels.

Photo: FabreGov via Shutterstock

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