Wall Street Firms Hold Firm on Crypto Stocks, Citing Shift to AI and Infrastructure

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Wall Street Firms Hold Firm on Crypto Stocks, Citing Shift to AI and Infrastructure

Despite a turbulent market for digital assets, three major Wall Street firms — Benchmark, TD Cowen, and Mizuho — have reaffirmed their buy or equivalent ratings on four publicly traded cryptocurrency companies: Bitdeer, DeFi Technologies, Strive, and Gemini. The collective reasoning, as reported by The Block, points to a strategic pivot by these firms away from simple trading models toward higher-growth areas such as artificial intelligence infrastructure and capital market utilities.

Analyst Actions and Price Targets

Benchmark maintained its buy rating on Bitdeer with a price target of $27, signaling confidence in the company’s expansion into AI-driven mining and data center operations. The firm also kept its buy rating for DeFi Technologies, though it lowered the price target from $3 to $2, reflecting near-term market headwinds.

TD Cowen raised its price target for Strive from $26 to $30, suggesting growing optimism about its business model transition. Mizuho maintained its “outperform” rating for Gemini, despite lowering its price target from $12 to $10.

The Market’s Underestimation

Mizuho analyst Dan Dolev provided key insight into the broader trend, stating that the market is underestimating the speed of this transition. He noted that Gemini managed to sustain its trading revenue even as its overall trading volume declined by more than 50%. This suggests that the company’s diversification into other revenue streams is beginning to pay off, a pattern that analysts believe is repeating across the sector.

Why This Matters for Investors

The maintained ratings carry weight because they reflect a shift in how Wall Street values crypto-native companies. Historically, these firms were judged almost entirely on trading volume and market cycles. Now, analysts are assigning value to their infrastructure buildouts, AI service offerings, and institutional utility — factors that could provide more stable, long-term growth. For retail and institutional investors alike, the signal is clear: the narrative around crypto stocks is evolving beyond speculation.

Conclusion

The consensus among Benchmark, TD Cowen, and Mizuho indicates that despite a challenging market environment, select crypto companies are successfully repositioning themselves for the next phase of digital asset adoption. The pivot to AI and infrastructure is not just a survival tactic — it is becoming a core part of their valuation story. Investors would be wise to look beyond surface-level trading metrics and assess these companies on their broader technological and strategic merits.

FAQs

Q1: Why are Wall Street firms maintaining buy ratings on crypto stocks despite market declines?
A1: Analysts believe these companies are successfully pivoting from simple trading models to higher-growth areas like AI infrastructure and capital market utilities, which offer more stable long-term revenue potential.

Q2: What specific changes did analysts make to price targets?
A2: Benchmark kept a $27 target on Bitdeer and lowered DeFi Technologies from $3 to $2. TD Cowen raised Strive from $26 to $30. Mizuho lowered Gemini from $12 to $10 while maintaining an “outperform” rating.

Q3: How did Gemini maintain trading revenue despite a volume drop?
A3: According to Mizuho analyst Dan Dolev, Gemini’s diversification into other revenue streams allowed it to sustain income even as trading volume fell by more than 50%, indicating successful business model evolution.

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