Bernstein Says Buy the Dip in Bitcoin Mining Stocks Ahead of BTC Price 'Inflection'
Bitcoin mining stocks have underperformed recently due to two factors: lower investor appetite to use them as a proxy and a weaker Bitcoin price. This underperformance, however, may present a buying opportunity, according to a research report by broker Bernstein. The Valkyrie Bitcoin Miners ETF, which invests in publicly traded bitcoin mining stocks, has fallen nearly 38% this year. Analysts predict further temporary weakness in Bitcoin, with a potential short-term bottom in the $38,000-$42,000 range. Despite this, investors are advised to be "structurally long" ahead of the next halving event in April. Bernstein recommends achieving Bitcoin exposure via Bitcoin miners that offer a higher-beta than Bitcoin, driven by EBITDA expansion and market multiple growth into the bull cycle. The broker prefers outperform rated stocks Riot Platforms and CleanSpark.
