Bitcoin might have cemented its status as “digital gold,” but one other widely touted purpose has yet to properly play out. The daddy of crypto is supposed to be a hedge against inflation but recent times have shown that soaring inflation has not provided a tailwind. In fact, Bitcoin’s performance has followed the lead of the equity market, and mirroring the wide downturn in 2022, bitcoin’s price has tumbled over 70% since peaking last November.
That said, the “death of bitcoin” has been announced countless times before and one thing bitcoin has been adept at doing over its decade-plus history is bouncing back eventually.
While Deutsche Bank’s Marion Laboure does not anticipate last year’s peak to be achieved over the near-term, using S&P 500 stocks as a reference, and factoring in the effect of higher interest rates, the senior strategist believes that by the end of the year, bitcoin’s price could climb back up to $28,000 – a 45% increase from current levels. And where the BTC price goes, so do the prices of stocks operating in its ecosystem.
With this in mind, we scoured the TipRanks database and homed in on three names which are set to benefit from a potential rise in bitcoin’s value. They all operate in the BTC mining space, they are rated as Strong Buys by the analyst community, and they offer plenty of upside potential in the year ahead. Here’s the lowdown.
Core Scientific (CORZ)
Let’s first take a look at Core Scientific, one of the figureheads in high-performance, net carbon neutral blockchain infrastructure and the mining of digital assets.
Outstanding mining performance aside – for its own mining operations last year, the company mined 5,700 BTC, the biggest annual haul ever by a publicly-traded company (Core also mines for its customers too) – the company stands out due to a number of unique selling points. Core has its own infrastructure and data centers, which in order to reduce risk, are geographically scattered across Texas, North Dakota, Oklahoma, North Carolina, Kentucky, and Georgia. And to oversee its miners and boost efficiency, the company has developed its own…