Bitcoin is on the move again.
After finding strong support around $28,000, BTC is back to $31,918. From here, we’d like to see it closer to $40,000 again.
“Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside,” Marcus Sotiriou, analyst at digital asset broker GlobalBlock said, as quoted by CoinDesk. “Relief has been long overdue in the crypto market, as the U.S. stock market already rallied last week, after [Federal Reserve head] Jerome Powell’s speech that gave the market clarity on [the Fed’s] plans to carry out a soft economic landing.”
If Bitcoin can push higher, keep an eye on crypto miners and companies that hold large positions in Bitcoin, as well. In fact, keep an eye on:
After dropping under $150, MSTR is coming back strong. Up $44.40 on the day, it could eventually run back to $450 on a sustained BTC rally. Last checked, the company owns about $191 million worth of BTC. So, as BTC recovers, so does MSTR.
Marathon Digital (MARA)
MARA may be one of the biggest beneficiaries of a Bitcoin recovery.
In May, the company said, “Revenue increased to $51.7 million, an increase of $42.6 million, or 465%, from the prior-year quarter and a decrease of $8.6 million, or 14%, from the fourth quarter of 2021. Bitcoin production increased to 1,259 bitcoin during the period, a 556% increase from the prior-year quarter and a 15% increase from the fourth quarter of 2021. The revenue decline from the fourth quarter of 2021 was the result of an approximate 25% decrease in average revenue per bitcoin mined, partially offset by the increase in bitcoin production during the first quarter of 2022.”
In addition, Jefferies’ analyst Jonathan Petersen just initiated a buy rating on the MARA stock, with a price target of $51 a share. BTIG analyst Gregory Lewis also initiated a buy rating on the Bitcoin mining stock, with a price target of $50.
Riot Blockchain (RIOT)
RIOT is another strong miner to consider.
The company “increased total revenue by 244% to a record $79.8 million for the three-month period ended March 31, 2022, as compared to $23.2 million for the same three-month period in 2021; Increased mining revenue by 150% to a record $57.9 million for the three-month period ended March 31, 2022, as compared to $23.2 million for the same three-month period in 2021; Produced record net income of $35.6 million for the three-month period ended March 31, 2022, as compared to net income of $7.5 million for the same three-month period in 2021.”