Bitcoin mining stocks present ‘compelling buying opportunity, analyst says

The recent crypto market downturn has created a prime buying opportunity for Bitcoin mining stocks, according to H.C. Wainwright Co. analyst Mike Colonnese.

In a research note to investors dated March 4, Colonnese argued the sharp pullback in Bitcoin ( BTC ) and mining stocks as temporary, while maintaining a bullish long-term outlook for BTC.

Bitcoin’s recovery Tuesday afternoon means the largest coin by market cap is down around 5.6% in 2025, while Bitcoin mining stocks have plummeted by around 25%. Colonnese attributes the selling pressure to macroeconomic issues, rather than fundamental weaknesses in the crypto sector.

“Tariffs, sticky inflation, a hawkish Fed, and austerity measures the government is taking through the Department of Government Efficiency (DOGE) have worked together to create a risk-off environment for equities and cryptocurrencies,” he noted.

With these macroeconomic headwinds persisting, the analyst believes in a “neutral-to-cautious stance” on Bitcoin in the short term. However, the underperformance in mining stocks represents an attractive entry point for investors to take advantage of.

‘Unreasonably low’ valuations

Bitcoin mining stocks are trading at “unreasonably low” valuations at 3.5 times 2025 revenue which is poor for “this stage of the cycle,” the analyst wrote. While mining stocks could indeed face further downside pressure, the current level offers significant upside for investors looking for leveraged exposure to Bitcoin ahead of its next bullish phase.

The analyst maintained his 2025 Bitcoin price target of $225,000, implying significant potential for both Bitcoin and mining stocks.