Institutional demand for Bitcoin mining stocks on the rise, analyst says

Institutional interest in Bitcoin mining stocks is surging, analysts at H.C. Wainwright said after hosting an investment conference in New York. 

The HCW Annual Global Investment Conference gathered major publicly traded Bitcoin (BTC) miners and industry leaders like MicroStrategy’s Michael Saylor. The main takeaway, according to the firm’s Managing Director and Crypto Analyst Mike Colonnese, was an increase in institutional involvement compared to previous years.

The analysts stated in a note shared with crypto.news that the approval of spot Bitcoin ETFs in January, combined with increasing demand for AI-driven power infrastructure, has piqued investor interest in Bitcoin mining equities and stocks.

Bitcoin mining stocks 

Despite a 40% decline in mining stocks since mid-July, compared to Bitcoin’s 10% drop, industry insiders believe the sector is undervalued, presenting potential investment opportunities ahead of the next bull market.

Key themes from the event included major miners’ capacity expansions, efforts to upgrade fleets with more efficient ASIC machines, and a resurgence in miners holding their Bitcoin assets. Additionally, some miners are diversifying into AI and high-performance computing, leveraging their power infrastructure.

Bitcoin price targets

Panelists at the event expressed optimism about Bitcoin’s future, predicting prices ranging from $100,000 to $250,000 in the next cycle, with an average forecast of $144,000 by the end of 2025. 

On Sept. 12, Michaël van de Poppe, Chief Investment Officer at MN Consultancy, said in a X post that he wouldn’t be surprised if Bitcoin reached between $300,000 and $600,000 in this market cycle.

On Sept. 13, Saylor’s company MicroStrategy announced that it continued its Bitcoin acquisition strategy, purchasing 18,300 BTC for $1.11 billion between Aug. 6 and Sept. 12. This brought the company’s total Bitcoin holdings to 244,800 BTC, acquired at an average price of $38,585 per coin.