Barclays (BCS), the British bank based in London, believes in the viability of bitcoin (BTC) over time. It also classifies Core Scientifi (CORZ) as “ best in class leveraged game on the crypto ecosystem ». Despite a difficult market following a devastating crypto bear, mining company Core Scientific has a positive risk/reward ratio. Its shares on the stock market have evolved in recent days and its room for improvement augurs well for the future.
Barclays’ optimism despite a tumultuous bitcoin market
The crypto bear remains a tough time for players in the crypto industry. The miners had to make do with the capital gains that were half their expectations. While the price of bitcoin fell by almost 50% and the cost of electricity was growing exponentially. In this economic context, several bitcoin mining companies have filed for bankruptcy. Apparently, these market difficulties do not seem to shake the optimism of Barclays (BCS). Indeed, the banking organization believes that the bitcoin miner Core Scientific display a optimal risk/reward ratio in the current state of the market.
Looking closely at the actions of mining and accommodation companies, they are experiencing a increase of nearly 10% the last days. This growth also coincides with a slight bitcoin price increase. The implicit wish of the actors of the crypto industry, is certainly to see the EDF reconsider some of its measures. Investors are hoping that the risks of financial instability and economic slowdown may deter it from abruptly withdrawing cash.
Core Scientific shows resilience in the face of the storm!
Barclays isn’t the only player showing optimism for Core. Chase Whitethe analyst at Compass Point there is also his opinion, we can not be more dithyrambic. According to him, Core Scientific has the scale and the experience necessary to overcome the obstacles encountered by bitcoin. He adds that the company’s monthly production of bitcoin, its current financing line of credit and its debt, allow it to finance all its projects by the end of next year. Even more interestingly, Core creates through its third-party hosting business income that does not match the price of bitcoin.
In recent Compass Point analysis, the buy recommendation is made to investors. Core shares are selling far from their real value, which bodes well for significant upside. A few months ago, Core Scientific undertook to place approximately $100 million worth of stock for the next two years in B. Riley, an investment bank. With this initiative, the miner wants to boost his liquidity. Last August, the virtual currency mining company downsized its staff. This action contributed to the devaluation of its assets in a context where the crypto market is experiencing a certain rout.
In short, bitcoin is going through a rather delicate period and its value is far from its usual standards. Nevertheless, the queen of cryptos still keeps a good rating at Barclays and other institutions. Several mining and hosting companies have gone bankrupt throughout this year, but some companies like Core Scientific are showing resilience. This bitcoin miner has put in place a strategy to improve its liquidity in order to stay in the green and it has been quite successful so far.
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