Investors see public mining companies as analogous to investing in leading cryptocurrencies. Their recent sell-off has created buying opportunities, CoinDesk has reported citing DA Davidson analyst Christopher Brandler.
In October, Bitcoin and Ethereum renewed all-time highs above $67,000 and $4,400, respectively. On November 26, the price of the leading cryptocurrency fell below the $55,000 mark, whereas Ethereum rolled back to the $4,000 area. In his research note, Brandler noted negative dynamics was observed in the shares of mining companies.
In his opinion, although the prices were influenced by both the Bitcoin rollback and the general deterioration of sentiment in the financial markets, overbought securities could contribute. The analyst added that overall, the miners’ financial performance “remains fantastic.”
Brandler has said that blockchain hosting provider Core Scientific is his favorite in the Buy & Hold strategy. In July, the company announced it intended to go public through a reverse merger with SPAC Power & Digital Infrastructure Acquisition Corp.
The analyst also saw growth potential in the shares of Hut 8 and Argo Blockchain.