The gloom that has settled on the Cryptoverse in recent days extended to Bitmine, which is a holder of digital currency — most notably its favored asset, Ethereum.
This is all well and good when such assets are thriving, but currently that’s not the case. Increasing fears that the Federal Reserve (Fed) won’t cut interest rates in December are leading many investors to ditch all manner of cryptocurrencies. Like others, Ethereum has taken it on the chin, so it’s little wonder those folks are increasingly downbeat about Bitmine.
Compounding this was that price target chop, enacted by B. Riley’s Fedor Shabalin on Thursday morning. The analyst took an axe to his Bitmine fair value assessment, reducing it to $47 per share from his previous $90. Interestingly, this doesn’t make him a Bitmine bear, as he maintained his buy recommendation on the stock.
Cryptocurrencies are always volatile plays, as are the companies that invest in them. Of the major blockchains, though, I’d say Ethereum has above-average potential due to its utility (and renown) as a suitable platform for decentralized applications (dApps). Considering that, I’d say the Bitmine sell-off on Thursday feels a bit overblown and might present a “buy on weakness” opportunity.
