Riot Platforms Analysts Expect Bitcoin Mining Stock To More Than Double

Financial services firm Cantor Fitzgerald has highlighted Riot Platforms RIOT as their top pick in the Bitcoin BTC/USD mining sector.

The firm's confidence in Riot's potential is evident as it set a price target of $23.00, more than double its current price of $10.98.

In an analyst note, Cantor Fitzgerald emphasized Riot's position as the Bitcoin halving approaches, suggesting that the company is poised to continue gaining a larger share in the Bitcoin mining industry.

The anticipated surge in the Bitcoin mining sector leading up to the 2024 halving is set to be among the highly engaging conversations at Benzinga's Future of Digital Assets event in New York City on Nov. 14. Don't miss this pivotal discussion, as industry leaders converge to share insights and predictions on the future landscape of digital assets.

Key Highlights From Analysts

Cantor Fitzgerald has an Overweight rating on Riot Platforms. The company mined 333 Bitcoin in August 2023, a decrease of approximately 19% MoM. This decline was attributed to Riot's participation in the ERCOT energy markets.

Despite mining fewer Bitcoins, Riot generated a whopping $31.6 million in August from power credits and demand response credits. This is a 305% MoM increase. The company's energy revenues for August equated to approximately 1,134 Bitcoin, considering an average Bitcoin price of $27,874.

Riot's management has revised its hash rate guidance, now expecting to achieve 12.5 EH/s by the end of 2023. The company has the potential to reach a self-mining hash rate of 35.4 EH/s, the highest target announced by any public miner.

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Riot held 7,309 Bitcoin on its balance sheet as of Aug. 31, marking a 0.5% MoM increase. The company sold 300 Bitcoin in August, resulting in net proceeds of around $8.6 million.

Cantor Fitzgerald analysts Josh Siegler and Will Carlson noted, "We continue to believe that RIOT represents the best-in-class Bitcoin miner with significant scale, low energy costs, and no long-term debt."

The report also highlighted adjustments made to the RIOT model, reflecting changes in Bitcoin price, network hash, and Riot's August monthly update.

Price Action: Shares of Riot were up 2.19% at $11.49 at the time of publication on Thursday.

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