Broker Raises Year-End Bitcoin Target to $90K and Updates Mining Stock Estimates

According to CoinDesk, Bernstein has increased its year-end bitcoin price forecast from $80K to $90K and updated estimates for mining stocks in its coverage. In a research report published on Thursday, analysts Gautam Chhugani and Mahika Sapra stated that bitcoin miners are compelling buys for equity investors seeking exposure to the crypto cycle due to a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues. The authors assume a 7% reduction in hashrate post halving from shutdowns, compared to the previous estimate of 15%. Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain. The quadrennial reward halving, when mining rewards are cut in half, is expected to occur in mid-April. Bernstein raised its price target for outperform-rated CleanSpark (CLSK) to $30 from $14.20, trimmed its price target for outperform-rated Riot Platforms (RIOT) to $22 from $22.50, and increased its Marathon Digital (market-perform) price target to $23 from $14.30. The report also noted that Riot and CleanSpark are set to emerge as leaders in the sector, as the largest miners with the largest self-mining capacity.