Jefferies said that stablecoin giant Tether has quietly become one of the gold market’s most influential new buyers.
The bank kept its hold rating on the stock and trimmed its price target to $16 from $19.
The bank said investors are likely to vote down the deal on Oct. 30, betting Core Scientific can create more value on its own.
Bitcoin mining margins tightened in September as a rising network hashrate and a slide in BTC prices dragged profitability lowe
The network secures $103 billion across more than 2,500 projects with partners such as Swift, DTCC and JPMorgan.
Jefferies says most institutional investors remain on the sidelines despite growing token infrastructure, but that's changing, and it's a good thing for the industry.
U.S.-listed mining companies accounted for 26% of the Bitcoin network last month, unchanged from July, the report said.
The bank reiterated its buy rating on CORZ and raised its price target for the bitcoin miner to $22 from $16 to reflect the CoreWeave acquisition.
A rising bitcoin price is seen as most favorable for Galaxy's digital assets business, while miners fight a rising network hashrate, the report said.
The macro and regulatory backdrop has intensified investor interest in the sector and provided a fresh tailwind for mining firms, the report said.
Jefferies assigned Galaxy (GLXY) a buy rating and a $35 price target
The deal aligns with CoreWeave's post-IPO growth strategy, leveraging its strong equity position to drive large-scale M&A, according to the investment bank.
The rise in profitability was driven by a 20% increase in the bitcoin price, while the hashrate rose only 3.5%, the report said.
U.S.-listed miners also produced fewer bitcoin last month than in March.
The firm has advised on 120 transactions with over $150 billion of deal value across fintech, market structure, and exchanges since 2015.
Mining profitability worsened due to a 11.2% decline in the bitcoin price and a 9.1% slump in transaction fees, the report said.
Mining profitability increased last month as the rally in bitcoin outpaced the increase in the network hashrate, the report said.
November was a strong month for the miners as the rally in bitcoin outpaced the rise in the network hashrate, the report said.
The investment bank initiated coverage of the bitcoin miner with a buy rating and a $19 price target.
August will be a more difficult month for the miners as the price of bitcoin has dropped about 5% while the network hashrate has started to grow again, the report said.
U.S.-listed mining companies produced a greater share of bitcoin in June than May as they brought on new capacity while the network hashrate dropped, the report said.
As Bitcoin, the flagship cryptocurrency asset continues to garner support from leading figures in the industry, Chris Wood, the Chief strategist at Jefferies in a daring statement that might change people’s perceptions of digital currencies has suggested that the potential collapse of the United States Dollar Paper Standard could significantly benefit BTC holders in the […]