Rising Bitcoin prices prompt analyst to raise price targets for these two Bitcoin mining stocks and reiterate buy ratings – Riot Platforms (NASDAQ:RIOT), Cipher Mining (NASDAQ:CIFR)

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Needham analyst John Todaro maintains Riot Platforms IncRIOT with a buy and raises the price target from $9 to $15. The revaluation reflects the operational scalability, liquidity premium and healthy balance sheet of the company. RIOT announced first-quarter FY23 bitcoin production results on April 6 after the close. RIOT self-mined 2,110 BTC for the quarter, matching Todaro’s estimate of 2,124. The analyst was encouraged by management’s target of 12.5 PE/s in rate capacity. operational hash within 2H, which keeps RIOT on track as one of the largest miners by hash rate. Todaro increased FY23 revenue and adjusted EBITDA estimates based on rising bitcoin prices due to bank-related issues, trade deals suggesting weakening USD reserve status, and supply reductions in new BTC issuance after halving in Q1 FY24. Todaro reiterates Cipher Mining IncCIFR with buy and raises price target from $2.7 to $4. The analyst raised its revenue and adjusted EBITDA estimates for 2023 due to higher bitcoin prices, partially offset by higher adjustments to the network’s total hash rate. The higher the hash rate of the network, the higher the costs for each bitcoin mined. However, Todaro believes the network’s hash rate is starting to approach a ceiling, as the difficult funding environment has prevented miners from making the capital outlays needed for large-scale hash rate gains. . The funding environment could change and become more accommodative if BTC continues to rally. Bitcoin has been quietly recovering since FTX collapsed in November 2022, with prices surging above $30,000 yesterday. Price Actions: RIOT shares traded down 2.02% at $12.13 when last checked on Wednesday. CIFR shares traded down 7.39% at $2.38.

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