On August 26th, Canaccord Genuity Capital Markets’ raised their 12-month price target on Hive Blockchain (TSXV: HIVE) to US$7.00 from US$5.50 while reiterating their buy rating on the stock. They believe that HIVE continues to execute its plan and believe that the current setup is attractive for many reasons.
Canaccord comments that on a macro level, they believe “digital assets are biased higher in the medium term.” Specifically, Ethereum and Bitcoin which have seen the least volatility over recent months. As some of these asset prices have slowly rebounded, Canaccord believes this will have a more significant positive impact on miners than any other segment of the asset class.
On a company level, HIVE’s mining efficiency, “is supported by a modern mining fleet and diversification into mining ETH.” While most recently, the company received the first Intel ASIC explicitly designed for bitcoin mining. On top of this, HIVE recently completed building a fourth facility at its New Brunswick site. These are all things that Canaccord highlights when saying that HIVE is currently executing on its plan.
Lastly, Canaccord believes that HIVE “checks several other boxes that we like,” which include things like 100% green energy, a business model that has optionality, and “a solid BTC HODL relative to market cap.” With all these, Canaccord expects HIVE to see multiple expansion as both the overall and crypto markets slowly start to rebound. They write, “we remain positive on Hive’s outlook.”
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.