The Federal Reserve raised rates this week, by another 0.75%, toughening up its anti-inflationary stance. At the same time, Fed chair Jerome Powell indicated that the central bank may slow its pace on rate hikes, which gives some hope for a ‘soft landing,’ that may curb inflation while avoiding a deep recession. Markets rallied strongly in response to the Fed news.
The rally has made its way to cryptos, too, which have been tracking US stocks closely this summer. In particular, the largest crypto, Bitcoin, is up 21% this month.
Nexo crypto wallet co-founder Antoni Trenchev sees these developments as net gains, and predicts further near-term rally in BTC in his comments on the Fed meeting: “The conclusion of Wednesday’s Fed meeting opens up a summer window for a Bitcoin relief rally, given we now have two months until policymakers next deliberate on monetary policy.”
So it’s an interesting time to look at bitcoin mining stocks, which are highly correlated to the price of BTC. Using the TipRanks database, we identified two such equities that have received bullish praise from the Street, enough to earn a “Strong Buy” consensus rating. Let’s take a closer look.
The first bitcoin miner we’ll look at it CleanSpark, a company with double-barreled focus – one barrel targeting bitcoin mining and the other aimed at clean energy. CleanSpark produces software products that allow close control of distributed energy systems, microgrids, and other off-the-grid power systems based on ‘green’ energy such as solar, wind, or nuclear. In CleanSpark’s particular case, it uses this technology to power its bitcoin mining operations.
Those bitcoin mining ops are substantial. CleanSpark currently operates four mining facilities, in Texas, Georgia, and New York, and this month announced an expansion of mining capacity totaling 90 petahashes. This expansion was powered by the acquisition of new, ‘latest generation’ mining servers, 1,061 Whatsminer M30S machines, installed a facilities co-operated with Coinmint. In addition, CleanSpark also…