Canaccord Likes The Setup In This Bitcoin Mining Stock Amid Crypto Contagion – HIVE Blockchain Techs (NASDAQ:HIVE), Bitcoin (BTC/USD), Ethereum (ETH/USD), Intel (NASDAQ:INTC)

As contagion seeps through the crypto universe, one analyst firm sees opportunity in a beaten-down Bitcoin BTC/USD miner.

What Happened: Canaccord Genuity analysts on Monday reiterated Hive Blockchain Technologies Ltd HIVE with a Buy rating and a $7 price target.

“We are encouraged by the company’s efficient Bitcoin production, strong balance sheet, steady progress at its facilities, and prudent approach towards repurposing its GPU machines,” the analyst firm wrote in a note to clients.

Canaccord analysts acknowledged that the company took an operating capacity hit as a result of the Ethereum ETH/USD merge, but its bitcoin approach is what really stands out.

The firm touted bitcoin’s relative strength in the crypto market in the face of recent volatility. Canaccord believes Hive’s efficient bitcoin strategy will pay off as digital assets move higher longer term.

Hive is positioned to take advantage of a resurgence in bitcoin prices as it sits at the high end of bitcoin mined per exahash of output in production, the analysts said.

“Production efficiency is supported by a modern mining fleet as well as plans to repurpose some of its GPUs into non-mining activities,” Canaccord said.

See Also: Bitcoin, Ethereum, Dogecoin Fall: Analyst Says ‘More Blood Yet To Come’ As Genesis Crisis Adds To Crypto Carnage

The analyst firm is also encouraged by early developments with Intel Corp INTC. Hive is one of the few miners that has secured a contract for Intel’s new ASIC chips, Canaccord said, adding the company’s ASIC order is still on track to be delivered at the end of the year.

Hive also “checks a number of other boxes” including having a 100% green energy footprint and a business model that affords optionality.

“Given our view that HIVE checks all the boxes we like to see in a digital-assets miner, we believe that the company can experience multiple expansion toward at least the mean of the peer group,” Canaccord said.

“As such, we remain positive on Hive’s outlook.”

HIVE Price Action: Hive has a 52-week high of $20.47 and a 52-week low of $1.98.

The stock was up 0.89% at $2.02 Tuesday morning, according to Benzinga Pro.