Mining Bitcoin's shares are recovering more than the cryptocurrency itself

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Mining Bitcoin's shares are recovering more than the cryptocurrency itself

Investing.com - The fall of Bitcoin and the overall cryptocurrency market in recent weeks has hit Bitcoin mining stocks hard, sometimes falling more than the cryptocurrency itself.

But as Christopher Brendler, an analyst at investment bank DA Davidson, pointed out in a research note published yesterday, this fall has created buying opportunities.

"While the slightly riskier market and the decline in BTC may have contributed, we also think the group moved a little too fast," Brendler said, adding that the fundamentals of bitcoin mining companies "remain fantastic".

Brendler pointed out that Core Scientific, which plans to go public via a SPAC, is his favourite bitcoin mining stock "buy-and-hold", and also sees potential upside in shares of Hut 8 Mining Corp (NASDAQ: HUT )  and Argo Blockchain (NASDAQ: ARBK ).

Recall that Hut 8 shares rose 4.6% yesterday on the Bitcoin rally, while Argo Blockchain fell over 3%.

In other BTC mining stocks, Cipher Mining Inc was up 1.33% on Monday, while Marathon Digital (NASDAQ: MARA ) gained 4.45%, and HIVE Blockchain (NASDAQ: HIVE ) was up 3.77%.

But it was Bitfarms Ltd (NASDAQ: BITF ) and Bit Digital Inc (NASDAQ: BTBT ) that were the biggest risers yesterday, taking off by 10.08% and 11.96% respectively, much stronger performances than Bitcoin itself, confirming the potential of Bitcoin mining stocks as a leveraged bet on the cryptocurrency.

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