Wall Street Analyst: Institutions Are Not Ready to Assess the Mining Industry Correctly

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DA Davison expert Christopher Brendler reported that the interest of large companies in the crypto industry is growing, but they still doubt the profitability of the mining industry.

According to Bandler, interest in cryptocurrencies during this time is significant.
increased among institutional investors. If at the beginning of 2021 about 5% of Wall Street brokers were serious about Bitcoin, then by the end of the year 15% of brokers are already working with cryptocurrency. Despite the fact that for large investors the cryptocurrency market is not as familiar as the traditional one, most have already figured out its nuances.

“While most investors are still new to the field, many are already involved and have been able to deeply explore the new market.”

Almost all investors agree that the mining market is currently showing growth, but remain skeptical when assessing the prospects for the development of this industry. This is due to the fact that the shares of mining companies are ahead of the growth in the value of bitokin, which reached new highs last week. They do not believe that mining stocks will continue to rise at the same rate. Valid for Marathon Digital and Riot Blockchain shares. have risen by about 1,500% and 600% respectively over the past twelve months, while the price of bitcoin has increased by 377% over the same period.

Brendler added that the usual methods cannot be used to evaluate the mining industry, since it is unpredictable.

“We recognize that traditional estimates may not apply in this sector as future cash flows are extremely difficult to predict.”

The expert noted that cryptocurrency miners are highly dependent on the bitcoin rate, since they store most of the mined cryptocurrency in their wallets.

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