Crypto Miners to Benefit From Biden’s Executive Order: Jefferies
The investment bank reiterated buy ratings for Argo Blockchain and Marathon Digital following Wednesday’s action by the White House.
President Joe Biden's executive order on crypto regulation appears to be broadly supportive of the digital asset industry, including crypto miners, and seeks to put the U.S. “ahead of the curve” as crypto becomes a more important part of the global economy, said Jefferies (JEF) analyst Jonathan Peterson in a note to clients.
- “We believe the fact that the U.S. government is now more formally recognizing, engaging with and seemingly supporting the digital asset industry will be a positive for public crypto mining companies,” he said.
- Peterson noted the contrast between the U.S. and China, which last summer banned crypto mining altogether and drove a wave of new investment in North America. “We see this [executive] order as another indicator that the regulatory environment in the U.S. is more supportive of miners and cryptocurrencies,” he added.
- Peterson reiterated buy ratings on miners Argo Blockchain (ARBK) and Marathon Digital (MARA). Shares of both are higher by about 15% at the same time as a 9% advance for bitcoin (BTC). However, shares of the miners remain lower by more than 30% for the year to date, while bitcoin's price is down about 16%.
- Other crypto-related companies seeing movement on their shares include Coinbase (COIN) up 9%, and Galaxy Digital (BRPHF) ahead 11%.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.