Bernstein analysts are closely watching seven key crypto stocks as former President Donald Trump prepares to address the Bitcoin Nashville conference on July 27. In a Monday note, the research firm expressed a bullish outlook on the crypto sector, predicting significant upside potential for select companies amid an improving regulatory environment.
Led by Gautam Chhugani, the Bernstein team stated that the market has yet to account for a potential positive shift in crypto regulations if Trump wins reelection in November. They see substantial growth potential from institutional investors allocating to crypto and related stocks.
Bitcoin markets have shown renewed strength, with BTC rising 13% last week, surpassing $67,000. Crypto stocks performed even better, increasing 22% over the same period. The report identifies seven stocks across three categories: Bitcoin mining consolidators (Riot Platforms, CleanSpark, Marathon Digital Holdings), hybrid Bitcoin/AI data centers (Core Scientific, Iris Energy), and a crypto broking/exchange platform (Robinhood), as well as a Bitcoin corporate treasury (MicroStrategy).
For Bitcoin mining consolidators, the analysts anticipate significant growth potential. “We view large Bitcoin mining consolidators as high-beta Bitcoin proxies, with price action driven by underlying Bitcoin price and potential cashflows from operating leverage,” the report noted.
Regarding Riot Platforms, the analysts highlighted, “RIOT holds over $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, the world’s largest Bitcoin facility.” The report also emphasized CleanSpark’s rapid expansion, stating the company has aggressively increased its hash rate from 10EH/s to 20.4EH/s year-to-date, with plans to reach 32EH/s by the end of 2024.
As the market anticipates Trump’s speech, these developments suggest a robust outlook for the crypto sector, particularly for the highlighted stocks under Bernstein’s watch.