MARA, COIN or RIOT: Which crypto stock does Wall Street still find compelling?

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The cryptocurrency market has rebounded well this year after a disastrous run last year. In particular, Bitcoin (BTC-USD), the largest cryptocurrency by market cap, is up over 80% so far in 2023 on improving investor sentiment. Meanwhile, concerns about the risks associated with the crypto market and the need for strict regulations remain. In this context, we used the stock comparison tool Tipranks to pit Marathon Digital (NASDAQ:MARA), Coinbase Global (NASDAQ:COIN) and Riot Platforms (NASDAQ:RIOT) against each other to choose the most attractive crypto stock according to Wall Street. pros, even though these stocks have risen considerably since the start of the year.

Digital Marathon (NASDAQ: MARA)

A sharp drop in Bitcoin prices due to macroeconomic pressures, the FTX collapse and high energy costs negatively impacted the performance of crypto miner Marathon Digitals 2022. The company’s loss per share climbed to $6.05 in 2022, compared to $0.37 in 2021.

Nevertheless, Marathon is taking the necessary steps to strengthen its financial position and improve its productivity. The company aims to boost its previously purchased mining rigs, aiming to reach its target capacity of 23 exahashes per second (EH/S) by the middle of this year.

In the first quarter of 2023, the company’s operational hash rate increased by 64%, from 7 PE/s to 11.5 PE/s. The improved hash rate helped boost Bitcoin production by 41% from Q4 2022 to 2,195 Bitcoin in Q1 2023, including 825 BTC in March.

Marathon also focuses on energy efficiency through the use of S-19 XP mining equipment. Once all previously purchased miners are installed, Marathon expects around 66% of its hash rate to be generated by S19 XPs, which are almost 30% more power efficient than the previous generation of rigs. – mining forms.

Is MARA stock a buy or a sell?

Wall Streets consensus strong buy rating for Marathon Digital stock is based on three buys and one block. The $10 average stock price target suggests the stock may be range bound. Marathon shares are up nearly 191% year-to-date.

Coinbase Global (NASDAQ:COIN)

The turmoil in the crypto market last year caused the performance of major US crypto exchange Coinbase to decline. The company slipped into a loss of $2.46 per share in the fourth quarter of 2022, against EPS of $3.32, due to a 75% drop in revenue to $629 million. However, both metrics were better than analysts’ expectations.

Still, Coinbases’ dwindling customer base and declining trading volumes in the fourth quarter were concerning. Meanwhile, the company’s efforts to diversify its revenue base are bearing fruit, given the traction of products such as Staking, Earn and Custody. Coinbase is also taking initiatives, including reducing its workforce, to drive down costs.

What is the Coinbase stock price target?

This week, Needham analyst John Todaro reiterated a sell rating on Coinbase stock ahead of its first quarter results. Todaro noted that trading volumes remain at a fraction of peak levels, although they have increased slightly from year-end levels.

The analyst believes that the company’s actions to right-size its spending base would lead to better results this year. Still, he believes the substantial retail price squeeze is only a matter of time and finds it difficult to expect the company to move towards meaningful long-term profitability.

Todaro also believes that the SEC Wells notice received by Coinbase in the first quarter reflects the massive regulatory risks facing the company’s business model.

Wall Street is sidelined on Coinbase, with a consensus Hold rating based on seven buys, seven takes, and seven sells. Following the staggering 92% year-to-date rally, the average price target of $63.40 suggests a possible decline of 6.5%.

Riot Control Platforms (RIOT)

Bitcoin miner Riot Platforms’ net loss increased significantly in 2022 to $3.65 per share from $0.17 per share in 2021, primarily due to non-cash impairment charges of $538.6 million related to the goodwill, Bitcoin and miner write-downs triggered by falling miner market prices. due to falling bitcoin price.

Nonetheless, the company’s hash rate capacity jumped 213% to 9.7 PE/s as of December 31, 2022. Severe winter storms in late December damaged two of the company’s buildings at the Rockdale facility, which delayed its plan to achieve self-mining hash rate capacity of 12.4 PE/s from the first quarter of 2023 to the second half of this year.

At the end of Q1 2023, Riots’ hash rate capacity improved to 10.5 PE/s, even after excluding 17,040 miners who were offline due to damage to Building G from the rigors winter at the end of December 2022.

Is Riot Platforms a Good Buy?

Following the Bitcoin production update for Q1 2023, Needhams Todaro has increased its revenue and Adjusted EBITDA estimates for Riot in 2023, due to rising Bitcoin prices due to 1 ) banking concerns; 2) recent global trade agreements that suggest a weakening of the reserve status of the dollar; and 3) reduction in the supply of new BTC issuance after the halving in the first quarter of 24.

Todaro reiterated a buy rating on Riot Platforms and raised the price target to $15 from $9. The analyst believes that Riot deserves a higher valuation than its peers, given its operational scalability, liquidity and strong balance sheet.

Wall Streets Strong Buy consensus rating on RIOT stock is based on eight unanimous buys. After the stock’s 264% jump so far this year, the $10 mid-price target suggests a possible 19% drop from current levels.

Conclusion

Analysts are very bullish on Marathon Digital and Riot Platforms but stay away on Coinbase. Riot Platforms shares have outperformed the other two stocks so far in 2023. However, Wall Street’s average price target does not point to more upside in Riot from current levels. Meanwhile, analysts’ average price target implies Marathon shares could be range bound. The higher price target is $12 in the case of Riot and $15 for Marathon, implying that there is more room for maneuver according to the more bullish analyst for these stocks.

While several crypto stocks have generated impressive returns year-to-date, investors should be aware of the highly volatile and risky nature of the crypto market.

Disclosure

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