Share this article
Wall Street Analyst ‘Pulling the Plug’ on Bitcoin Miners Owing to Bear Market Woes
DA Davidson analyst Chris Brendler downgraded Core Scientific and Argo Blockchain from buy to neutral and said the bank has grown “increasingly concerned” about the miners.
By Aoyon Ashraf
Updated May 9, 2023, 4:00 a.m. Published Oct 21, 2022, 1:35 p.m.
Bitcoin miner Core Scientific (CORZ) and Argo Blockchain (ARBK) were downgraded from buy to neutral by Wall Street investment bank DA Davison as crypto winter continues to weigh heavily on the profitability of the miners, analyst Chris Brendler wrote in a note Friday.
“Persistent inflation and rising pessimism around interest rates have pushed back the eagerly anticipated [Federal Reserve interest rate] pivot and it's now clear that less advantaged miners are already starting to run out of time,” Brendler wrote. Brendler added that he is still positive on bitcoin’s long-term potential but he is “pulling the plug” for now on the miners as higher power costs, increasing network competition and debt burdens have further strained profitability and liquidity.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Previously, Brendler was optimistic about the miners as he predicted that lower bitcoin prices and higher costs would weed out the competition and lower the network hashrate. However, that didn’t play out as both network difficulty and hashrate are now near all-time highs.
Read more: Bitcoin Mining Difficulty Surges to All-Time High, Putting Additional Squeeze on Miners
The ongoing bear market has been particularly tough on the bitcoin mining sector, which saw the shares of publicly traded bitcoin miners fall by more than 70% this year, on average, according to FactSet data. Most recently, Argo was forced to raise $27 million to ease liquidity pressures, while one of the largest mining data center providers, Compute North, filed for bankruptcy.
Amid this backdrop, two of the largest miners, Riot Blockchain (RIOT) and Marathon Digital (MARA), are Brendler’s top picks as “as both have low-cost power, funded growth plans, and ample liquidity to capitalize on the impending shakeout.”
Brendler noted that the decision to downgrade Core Scientific wasn’t an easy one because he still sees it as “best-in-class in many ways,” echoing Barclays’ analyst who called the company a “best-in-class, leveraged play on the crypto ecosystem” earlier this month.
However, Brendler said that Core Scientific now faces “multiple acute challenges” and his recent industry checks suggest that the company has “a significantly more stressed liquidity position than expected.”
Read more: Crypto Miners Face Margin Calls, Defaults as Debt Comes Due in Bear Market
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Tom Lee urges BitMine shareholders to approve share increase ahead of January 14 vote
The chairman of the former bitcoin miner-turned-ether treasury firm reiterated his view that Ethereum is the future of finance.
What to know:
- Tom Lee, chairman of Bitmine Immersion (BMNR), urged shareholders to approve an increase in the company's authorized share count from 500 million to 50 billion.
- Lee assured shareholders that the increase is not intended to dilute shares, but instead to enable capital raising, dealmaking, and future share splits.
- Shareholders have until January 14 to vote on the proposal, with the annual meeting scheduled for January 15 in Las Vegas.
Top Stories
