However, this underperformance might provide a window for investors looking for an opportunity to buy into mining stocks.
“Just like bitcoin, the next two months offer a dip buying opportunity in bitcoin miners,” as the stocks will offer “higher beta trade” to the next bitcoin price inflection, analysts Gautam Chhugani and Mahika Sapra wrote.
There may be a further temporary weakness in bitcoin, with a potential short-term bottom in the $38,000-$42,000 range for the world’s largest cryptocurrency, the report said. Still, investors should be “structurally long” ahead of the next halving event, expected in April.
In a separate note on Wednesday, Bernstein reiterated its bullish call on the miners.
The broker recommends “achieving bitcoin exposure via bitcoin miners that offer a higher-beta than bitcoin driven by EBITDA expansion and market multiple growth into the bull cycle.”
Bernstein says it prefers outperform rated stocks Riot Platforms (RIOT) and CleanSpark (CLSK).