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American <a href="https://xpertsstudio.com/bis-study-finds-bitcoin-transfer-estimates-can-vary-by-6x/” title=”BIS Study Finds Bitcoin Transfer Estimates Can Vary by 6x”>Bitcoin (NASDAQ:ABTC) shares gained approximately 1% in premarket trading on Wednesday after BTIG initiated coverage of the company with a Buy rating and a $15 price target.
The brokerage issued its assessment the previous evening. Its target represents approximately 88% potential upside from the stock’s previous closing price, based on the figures provided.
The rating reflects BTIG’s assessment of American Bitcoin’s mining operations, Bitcoin holdings and relationship with Hut 8.
BTIG Highlights Mining and Bitcoin Accumulation Strategy
BTIG’s investment thesis focuses on two components of American Bitcoin’s business: its Bitcoin mining operations and its programme of acquiring Bitcoin on the open market.
According to the brokerage, the company operates at approximately 28 exahashes per second, representing around 3% of the global Bitcoin network’s hash rate.
The firm also highlighted American Bitcoin’s holdings of approximately 8,000 BTC, which it said place the company among the 15 largest publicly listed Bitcoin holders in the United States.
These holdings expose the company’s treasury value to movements in the price of Bitcoin.
BTIG identified American Bitcoin’s operational partnership with Hut 8 as another factor in its assessment. The arrangement provides access to infrastructure and shared services.
Brokerage Also Initiates Coverage of Hut 8
BTIG assigned a Buy rating to Hut 8 as part of the same coverage initiation.
The brokerage’s assessments of the two companies reflect its views on their respective operations and exposure to Bitcoin-related activities.
American Bitcoin’s mining business generates exposure to Bitcoin production, while its accumulation programme adds to its cryptocurrency holdings.
The company’s financial performance and the value of its Bitcoin treasury remain subject to changes in cryptocurrency prices, mining conditions and operating costs.
Shares Remain Below 52-Week High
American Bitcoin shares rose approximately 1% before the opening bell following the BTIG announcement.
The stock has traded between a 52-week low of $4.92 and a 52-week high of $120.75, according to the supplied market data.
BTIG’s $15 price target is an analyst estimate rather than a guaranteed future trading level.
Broader US equity futures also indicated gains during premarket trading. The Nasdaq was up 0.5%, the S&P 500 gained 0.3%, and the Dow Jones Industrial Average advanced 0.2%.
The timing of American Bitcoin’s share price increase coincided with the coverage initiation, although the available information does not establish how much of the movement was attributable to the analyst report rather than broader market conditions.
Source: finance.yahoo.com