Title: Bernstein Analysts Bullish on Crypto Stocks Ahead of Trump’s Bitcoin Conference Address
Bernstein analysts are closely monitoring seven key crypto stocks as former President Donald Trump prepares to address the Bitcoin Nashville conference on July 27. The research firm outlined its bullish outlook on the crypto sector in a note on Monday, forecasting significant upside potential for select companies amid an improving regulatory environment.
The Bernstein team, led by Gautam Chhugani, believes that the market has not priced in a positive shift in the crypto regulatory environment if Trump wins reelection in November. They see significant headroom from institutional investors allocating to crypto and crypto stocks.
Bitcoin markets have been buoyant again, with BTC up 13% last week, back above $67,000. Crypto stocks were even stronger, up 22% last week, according to the firm.
The report highlights seven stocks across three categories: Bitcoin mining consolidators (Riot Platforms, CleanSpark, Marathon Digital Holdings), hybrid Bitcoin/AI data centers (Core Scientific, Iris Energy), and crypto broking/exchange platform (Robinhood), as well as a Bitcoin corporate treasury (MicroStrategy).
For BTC mining consolidators, the analysts see significant growth potential. Riot Platforms, for example, holds more than $0.6 billion worth of Bitcoin on its balance sheet and has raised $500 million in equity capital to build its 1Gw Corsicana site in Texas as the world’s largest Bitcoin facility.
CleanSpark has rapidly expanded its hash rate from 10EH/s to 20.4EH/s YTD, with a potential pipeline to grow to 32EH/s by 2024 end. Marathon Digital has shifted its strategy to own and operate Bitcoin mining sites.
The hybrid Bitcoin mining and AI data center operators, Core Scientific and Iris Energy, were praised for their unique market position. Core Scientific recently obtained a 12-year $4.7bn co-hosting contract with CoreWeave, while Iris Energy owns a 1.4GW site with ready power interconnect in West Texas.
Robinhood’s potential in the crypto market is also highlighted, with analysts expecting revenues to double over the next 2 years, with more than 70% of the growth coming from crypto transaction revenues.
MicroStrategy’s BTC strategy, which has made it the largest corporate holder of BTC, is lauded by the analysts. They expect significant uptick in 2025 EBITDA, driven by a Bitcoin bull cycle.
The report also touches on the potential impact of the upcoming U.S. elections and Trump’s stance on crypto. Bitcoin price continues to react positively to any potential improvement in odds of a Republican win, placing faith in Trump’s positive comments on crypto.
Overall, the Bernstein team’s bullish stance is underpinned by their ambitious BTC price target, expecting Bitcoin to cross $100K in 2025 with a cycle peak close to $200K.
Source: https://decrypt.co/240859/potential-trump-victory-bitcoin-not-priced-bernstein
