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Barclays Remains Positive on Bitcoin, Sees Miner Core Scientific as ‘Best-In-Class Leverage Play’

Barclays initiates coverage of the bitcoin miner with buy-equivalent rating.Read MoreCoinDesk

Barclays (BCS) says it remains positive about the long-term viability of bitcoin (BTC), and views bitcoin miner Core Scientific (CORZ) as a “best-in-class, leveraged play on the crypto ecosystem.”

The crypto winter has clearly been rough for miners, who have seen profit margins shrink as bitcoin prices plunged more than 50% this year, while power prices soared and capital dried up. Despite this difficult macro backdrop, Barclays sees compelling risk/reward for Core at current levels.

The shares of crypto hosting and mining company rose about 9.5% in premarket trading on Tuesday, amid a rally in the bitcoin price on the hope that financial stability risks and signs of economic slowdown will force the Federal Reserve to pivot away from aggressive liquidity withdrawal measures.

Barclays initiated coverage of Core with an overweight rating and a $3 price target. The stock had nine buy ratings and an average 12-month price target of $5.97, according to FactSet data.

Compass Point echoed this positive sentiment about the company in a report last week. It said in a note to clients that Core has the scale and experience to make it through the bitcoin market downturn.

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