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

Institutional interest in Bitcoin mining stocks has increased, analysts at HC Wainwright said after holding an investment conference in New York.

The HCW Annual Global Investment Conference brought together major public Bitcoin (BTC) miners and industry leaders like MicroStrategy’s Michael Saylor. According to the company’s Managing Director and Crypto Analyst Mike Colonnese, the key takeaway was the increase in institutional participation compared to previous years.

The approval of spot Bitcoin ETFs in January, combined with the increasing demand for AI-powered power infrastructure, has increased investor interest in Bitcoin mining stocks and shares, analysts wrote in a note shared with crypto.news.

Bitcoin mining stocks

Despite a 40% drop in mining stocks since mid-July and a 10% drop in Bitcoin, industry experts believe the sector is undervalued and offers potential investment opportunities ahead of the next bull market.

Key themes at the event included capacity expansions by major miners, efforts to upgrade fleets with more efficient ASIC machines, and a renewed increase in the number of miners holding Bitcoin assets. Additionally, some miners are leveraging their power infrastructure to focus on AI and high-performance computing.

Bitcoin price targets

Panelists at the event expressed their optimism about the future of Bitcoin, predicting that prices will range between $100,000 and $250,000 in the coming cycle, reaching an average of $144,000 by the end of 2025.

Michaël van de Poppe, Chief Investment Officer at MN Consultancy, said in a September 12 post on X that he would not be surprised to see Bitcoin reach between $300,000 and $600,000 this market cycle.

Saylor’s company, MicroStrategy, announced on September 13 that it was continuing its Bitcoin buying strategy, purchasing 18,300 BTC for $1.11 billion between August 6 and September 12. This brings the company’s total Bitcoin holdings to 244,800 BTC, purchased at an average price of $38,585 per coin.