TL; Fault DR
- Wall Street brokers are moving to bitcoin and crypto mining stocks.
- Brokers interested in bitcoin grew by 5%.
The first digital asset, Bitcoin, does not move in the digital currency market at all. This is due to the widespread growth of digital assets since its development in 2009. The increase in assets is due to the fact that most traders in the market have it in their portfolio. Undoubtedly, organizational interest in this asset, although slightly reduced, is still mature.
According to one of the analysts of the new Wall Street update, the interest of Wall Street brokers in crypto mining stocks is now increasing. The report was compiled by Christopher Brandler, an analyst at DA Davidson, a Wall Street firm. Brandler noted that new institutional investors are now turning to Bitcoin and other cryptocurrency mining stocks. He also noted that new investors are skeptical about stock valuation.
Brandler says Wall Street brokers interested in bitcoin have risen 5 percent.
Christopher Brandler, who recently researched cryptographic miners, noted that about 15 percent of Wall Street brokers now take bitcoin seriously. It also offsets the number of brokers providing payment-related services, which has now increased by 5%. Brandler also noted in his article that a number of them had previously participated in the stock and are now seeking a deeper entry. He also said that most Wall Street brokers are now in the bitcoin space and agree with what he mentioned in his research. However, most of them were still very skeptical about valuing assets.
It is no longer news that the price of bitcoin rose last week and set a new record. As crypto mining stocks rise, and some of them outperform bitcoin, Wall Street brokers will lose out on stock performance in the future. Over the past 12 months, China Riot and Marathon Digital have seen a 600 percent and 1,500 percent increase over Bitcoin, up 377 percent over the same period.
Crypto miners use the price of bitcoin
Brandler acknowledges that they cannot value this segment using traditional valuation because future cash inflows are unpredictable. However, he notes that crypto traders leverage the price of bitcoin, and most of their revenue comes from mining assets. This is the main reason why many of them keep their extracted assets as much as possible. He points out that most of them keep their mined assets to earn money from increasing bitcoins or getting bitcoin-backed loans.
According to Brandler, his top choice for miners is Hut 8 Mining. He notes that the investment is currently trading at an estimated 4.4 times its EBITDA in 2022. EBITDA is a measure of the profit of extractors. Meanwhile, most Hut 8 Mining partners in this sector are currently trading at 6.6 or 9.1 times EBITDA 2022. With Wall Street brokers considering bitcoin, it is possible that the price of this asset will rise soon.