Barclays Still Positive on Bitcoin, Deems Miner Core Scientific ‘Best Leverage Game in its Class’

Barclays (BCS) says it remains positive on the long-term viability of bitcoin (BTC) and views bitcoin miner Core Scientific (CORZ) as “the best leveraged game in the crypto ecosystem.”

Crypto winter is clearly tough for miners, who have seen profit margins shrink as bitcoin prices drop more than 50% this year, while electricity prices skyrocket and capital dries up. exhausted. Despite this difficult macro backdrop, Barclays sees an attractive risk/reward for Core at current levels.

Shares of the cryptocurrency mining and storage company rose about 9.5% in crypto trading on Tuesday, amid a rise in bitcoin prices on hopes that financial stability risks and signs of a recession could be imminent. Economic slowdown will force the Federal Reserve away from aggressive liquidity withdrawals.

Barclays started coverage of Core with an overrated rating and $3 price target. According to FactSet data, the stock has 9 buy ratings and a 12-month average price target of $5.97.

Compass Point echoed this positive sentiment about the company in a report last week. It said in a note to clients that Core has the size and experience to weather the bitcoin market downturn.

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