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• H.C. Wainwright analyst says mining shares are higher decide than BTC.
• Mike Colonnese defined his view in a analysis word on Tuesday.
• Bitcoin gained 40% in January, mining shares 124% on common.

Mining stocks are considerably higher than direct publicity for traders wanting to totally profit from a additional potential improve in bitcoin costs.

Mining shares are massively outperforming BTC

Bitcoin traders had been a pleased lot final month as prices jumped practically 40%. But Mike Colonnese says the acquire was fairly trivial in comparison with a whopping 124% improve on common in mining shares.

More importantly, the analyst expects that outperformance to proceed shifting ahead. His research note reads:

We count on improved mining economics, pushed by increased BTC costs and moderating vitality prices to drive upward estimate revisions for the group all through 2023 and see continued a number of enlargement for mining shares.

Colonnese expects bitcoin costs to significantly have a good time as soon as the U.S. Federal Reserve slams the breaks on elevating charges and decides to pivot.

Colonnese names a ‘must-own’ mining inventory

The H.C. Wainwright analyst additionally famous that mining inventory proceed to construct on their positive factors regardless that bitcoin pared back a little over the previous week.

Part of his bullish view on BTC miners relies additionally on their month-to-month manufacturing replace. Three of them, specifically – Marathon Digital, CleanSpark, and Cipher Mining just lately reported a sharp improve within the variety of bitcoin they minted in January.

Consequently, Colonnese upgraded CIFR to “buy” this morning and mentioned its shares may climb additional to $3.0. That suggests about a 75% upside from right here.

In January, Cipher Mining Inc improved its hash price by roughly 48% versus the prior month. Colonnese dubbed it a “must-own” mining inventory in his analysis word as we speak.