Cryptocurrency, Bitcoin price (BTC-US Dollar) and Ethereum (ETH-US Dollar) surged on Oct. 25 in what appeared to be a rally of relief following the positive results of a big earnings week. Bitcoin traded above his $20,000 and Ethereum above his $1,500 on Tuesday.
Shares of most crypto mining and blockchain companies surged following the surge in cryptocurrency prices. Shares of Coinbase Global (coin) rose 13%, Marathon Digital (Mara) surged 14.4%, while the Hive blockchain (hive) jumped 12.1%, while MicroStrategy (MSTR) jumped 13.1%.
Let’s take a look at two Canadian mining companies looking to get the most out of the renewed investor confidence in cryptocurrencies.
HUT’s stock rose 17.2% yesterday to close at $2.32. Hut 8 Mining produces Bitcoin through an industrial-scale mining operation in Canada. Year-to-date, HUT’s share price has risen 31.8% over the past three months, while it is down 70.1%.
Is Hut 8 a good stock to buy?
With two unanimous buys, the consensus rating for HUT stock is medium buy. At TipRanks, Hut 8 Mining’s average target price of $5 means it could go up 115.5% from its current level.
Hut 8 continues to improve its hashrate capacity and mining effort every month. Amid the cryptocurrency crash, HUT’s share price fell sharply, trading at an 86% discount to its 52-week high of $16.57.
Bitfarms shares rose 16.2% after yesterday’s crypto surge, continuing its upward trajectory in today’s pre-market trading. Bitfarms has 10 mining farms in 4 countries with a current hashrate capacity of 4.2 exahash/sec. BITF stock is down 78.2% so far this year.
Is BITF stock a buy?
Based on one buy rating, the consensus rating for BITF stock is medium buy. Bitfarm’s average price target of $5 means a whopping 354.5% upside potential from current levels. Like HUT stock, BITF stock is currently trading at an 88% discount to its annual high of $9.36.
thoughts of the end
Cryptocurrency prices continue to influence the stock prices of blockchain and mining companies. Beyond this, macro factors such as rising interest rates and impending crypto market regulation will soon determine the trajectory of this sector.