DA Davidson says crypto miners are ‘literally printing money’
In its recent research on crypto mining companies, Wall Street investment banking and research firm DA Davidson said that with the recent China ban and Bitcoin above $55,000, the crypto mining companies are “literally printing money.”
The company conducted a research report on crypto mining companies including 8Hut, Riot Blockchain, Core Scientific, and Marathon Digital, giving all stocks a ‘buy’ valuation.
Davidson’s analyst, Christopher Brendler said:
“Combined with improved access to capital that’s sustaining their lead (and ‘HODL’), we expected these stocks to revalue much higher as earnings estimates crush near-term estimates, even if bitcoin consolidates.”
After the recent crypto ban in China, American mining companies expanded their share in the mining business. Also, with Bitcoin value recovering from the September crash, Brendler remarked that the mining companies are “literally printing money.”
“Bitcoin mining stocks are highly (~70%) correlated with bitcoin prices with good reason since BTC not only directly drives reported revenue, but all four also try to hold as much newly-minted bitcoin as possible in their balance sheet.”
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow
