Higher Bitcoin Prices Prompts Analyst To Boost Price Targets Of These Two Bitcoin Mining Stocks, Reiterate Buy Ratings

Needham analyst John Todaro maintains Riot Platforms Inc RIOT with a Buy and raises the price target from $9 to $15.
The re-rating reflects the company's operational scalability, liquidity premium, and clean balance sheet.
RIOT reported Q1 FY23 bitcoin production results on April 6 after the close. RIOT self-mined 2,110 BTC for the quarter, which aligned with Todaro's estimate of 2,124.
The analyst was encouraged by management's target of 12.5 EH/s in operational hash rate capacity by 2H, which keeps RIOT on track as one of the largest miners by hash rate.
Todaro raised his FY23 revenue and adjusted EBITDA estimates based on higher bitcoin prices due to banking-related concerns, trade deals hinting at weakening USD reserve status, and BTC new issuance supply cuts after the Halving in Q1 FY24.
Todaro reiterates Cipher Mining Inc CIFR with a Buy and raises the price target from $2.7 to $4.
The analyst raised his estimates for revenue and adjusted EBITDA for 2023 on higher bitcoin prices, partially offset by higher adjustments in the total network hash rate.
The higher the network hash rate, the higher the costs for each bitcoin mined.
However, Todaro believes the network hash rate is starting to near a ceiling, given that the challenging financing environment has prevented miners from making necessary capital expenditures for large-scale gains in hash rate.
The financing environment could shift and become more accommodative if BTC continues to rally.
Bitcoin has quietly rallied since the FTX collapse in November 2022, with prices crossing $30k yesterday.
Price Actions: RIOT shares traded lower by 2.02% at $12.13 on the last check Wednesday. CIFR shares traded lower by 7.39% at $2.38.

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