Since the beginning of the year, crypto-related stocks have been negatively impacted by volatility in cryptocurrencies due to the expected rise in interest rates. However, the market seems to have stabilized. Also, with President Biden signing an executive order to study the risks and opportunities of cryptocurrency, it would be wise to add Crypto Stock Marathon Digital (MARA), Riot Blockchain (RIOT), and Hut 8 Mining (HUT) to one’s watch list. Can Wall Street analysts expect the price of these stocks to rise 100% – 140% next month. To read.
Decades of high inflation, Russia’s invasion of Ukraine, rising crude oil prices, and the prospect of a sharp rise in the Federal Reserve’s aggressive interest rates have pushed negative market sentiment into the correctional zone earlier this year. Cryptocurrencies did not offer good prices, witnessing wildlife fluctuations.
However, the markets have recovered from their lows in the last few weeks after all the adverse growth factors that have driven the volatility. And the recent signing of an executive order by President Biden to address the risks and benefits behind the growing popularity and acceptance of cryptocurrencies is a good sign for crypto-related stocks. According to a research and markets report, the global cryptocurrency market will grow at a CAGR of 58.4%, which is expected to reach $ 32.42 trillion by 2027.
Since signing the executive order and strengthening investor sentiment is a good sign for the crypto market, we think it may be worthwhile to add crypto-related stocks to Marathon Digital Holdings, Inc. (MARA), Riot Blockchain, Inc. (RIOT), and Hut 8 Mining Corp. (HUT) on one’s watchlist. Wall Street analysts expect these stocks to grow 100% – 140% in the near term.
Marathon Digital Holdings, Inc.MARA)
Las Vegas-based MARA is a digital resource technology company that focuses primarily on cryptocurrency mining in the blockchain ecosystem and operates as a digital resource generator in the United States.
On April 5, 2022, MARA announced its intention to relocate its Bitcoin miners to new locations including Hardin, Monte, a more sustainable and non-carbon emitting energy source, in line with its commitment to achieve 100% carbon neutrality. Towards the end of 2022.
MARA’s total revenue increased by 3,353% year-on-year to $ 150.46 million for the fiscal year ended December 31, 2021. The company’s revenue from operations came in at 118.72 million, compared to a loss of $ 4.66 million a year from operations in the previous period. Also, its non-GAAP net income came in at 168.68 million, compared to $ 4.96 million non-GAAP net loss in the year-ago period. In addition, its non-GAAP EPS came in at 1.70, compared to the-0.07 non-GAAP loss per share.
Analysts expect MARA’s EPS to grow 780.6% year-on-year to 20 2.45 for fiscal year 2022. Its revenue for the quarter ended March 31, 2022 is expected to grow 551.6% year on year to $ 59.64 million. Over the past year, the stock has fallen 40.8% to close at $ 26.26 in the last trading session. However, Wall Street analysts expect the stock to hit $ 54.80 in the near term, indicating a potential 108.6% uptrend.
Riot Blockchain, Inc. (Riot)
RIOT is involved in cryptocurrency mining and the overall blockchain system through various investments. Castle Rock, Colo., The company has deployed about 8,000 application-specific integrated circuit miners at its cryptocurrency mining facility in Oklahoma. Also, its affiliate Tess Inc. Wholesale wants to develop a blockchain-based escrow service for telecom carriers.
On December 1, 2021, RIOT announced that it had acquired Ferry Franzman Industries, LLC (ESS Matron) for approximately $ 50 million. ESS Matron designs and manufactures high-tech electrical equipment solutions that are useful for setting up bitcoin mining operations on a scale. This acquisition is vital for RIOT as it will probably complement its ongoing infrastructure expansion to 700 MW and significantly improve its internal engineering capabilities.
For the fiscal year ended December 31, 2021, its total revenue increased 1,665% year on year to $ 213.24 million. The company’s adjusted EBITDA came in at $ 82.42, compared to the E 6.32 million consistent EBITDA loss in the year-ago period. Also, its net loss decreased by 37.4% year on year to $ 7.92 million.
For fiscal year 2022, RIOT’s EPS is expected to increase by 1,075% year on year to $ 0.78. For the quarter ended March 31, 2022, its revenue is expected to grow by 292.3% year to year to $ 91 million. Over the past year, the stock has fallen 60.2% to close at .2 19.23 in the last trading session. However, Wall Street analysts expect the stock to hit $ 44.14 in the near term, indicating a potential 129.5% uptrend.
Hat 8 Mining Corporation (Cottage)
Headquartered in Toronto, Canada, HUT is a bitcoin mining company with industry-scale operations. The company uses specialized tools to solve counting problems to validate transactions in the Bitcoin blockchain and provides hosting services to institutional clients.
On March 2, 2022, HUT announced that it had signed a multi-year partnership with Enthusiastic Gaming Holdings Inc. “As a digital currency minor with data center infrastructure, we are ideally positioned to join a force,” said HUT CEO Jaime Leverton. The largest and fastest growing gaming entertainment company in North America and the unique benefits of this strategic partnership. “
The total revenue of HUT for the fiscal year ended December 31, 2021, increased by 326.8% year over year to CAD173.77 million ($ 139.36 million). The company’s mining profits rose 10,888.5% year on year to CAD108.12 million ($ 86.71 million). Also, its comparable EBITDA came to CAD96.59 million compared to the comparable EBITDA loss of CAD206,000 ($ 165,200).
Analysts expect HUT’s EPS for FY 2022 to increase by 59.2% to $ 219.28 million. Its revenue for the quarter ended June 30, 2022 is expected to grow 93.7% year on year to $ 51.94 million. In the last six months, the stock has lost 42.2% to close at 23 5.23 in the last trading session. However, Wall Street analysts expect the stock to hit $ 12.32 in the near term, indicating a potential 135.6% uptrend.
MARA shares fell $ 1.26 (-4.80%) in premarket trading on Wednesday. Year-to-date, the MARA declined -20.09%, while the benchmark S&P 500 index rose -4.74% over the same period.
Author Profile: Dipanjan Banchur
Dipanjan has been interested in the stock market since he was in grade school. As a result, he earned a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging financial market trends.
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