Opinion: Decline in mining-company shares opens buying opportunities

Investors are viewing public mining companies as a proxy for exposure to the leading cryptocurrencies. The recent sell-off in their shares has created buying opportunities, writes CoinDesk citing DA Davidson analyst Christopher Brendler.

In October, Bitcoin and Ethereum hit all-time highs above $67,000 and $4,400 respectively. According to ForkLog‘s report, the month proved positive for miners.

On November 26, Bitcoin prices fell below the $55,000 mark, Ethereum retreated to around $4,000. In his analytical note, Brendler noted that negative momentum was observed in mining stocks.

According to him, although the pullback in Bitcoin and the broader deterioration in market sentiment also weighed on prices, overbought conditions in equities could have contributed. The analyst added that overall miners’ fundamentals remain fantastic.

Brendler highlighted Core Scientific as his Buy&Hold pick in the strategy. In July, he announced plans to become a public company through a reverse merger with SPAC Power & Digital Infrastructure Acquisition Corp.

The analyst also saw growth potential in Hut 8 and Argo Blockchain stocks.

On November 16, Marathon disclosed that the SEC was investigating. In pre-market, the mining company’s shares were priced roughly 27% below the close.

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