Shares of crypto mining firm Riot Blockchain surged on Tuesday, closing over 7% higher, after broker Cantor Fitzgerald initiated coverage with an overweight rating and a price target of $45.
- Cantor sees Riot as one of the best ways for investors to gain exposure to bitcoin without having to own the digital asset directly, as the mining company holds most of the mined coins on its balance sheet.
- The broker said that Riot is in an unique position to continue to win market share in the coming years. The miner plans to more than double its mining capacity to 750 MW by the second quarter of 2022, and to triple its hashrate to 9 EH/s by year end, Cantor noted in its report.
- The miner’s hashrate is the second highest in the industry, the report added.
- Riot’s acquisition of Whinstone gives it a significant advantage over its peers as it reduces the miner’s reliance on third party hosting providers, Cantor said. The acquisition also makes it more vertically integrated and gives the firm increased control over its mining infrastructure and operating costs, the broker added.
- The Nasdaq-listed mining company acquired Whinstone from Northern Data AG in April for a total value of $651 million in cash and shares.
- Riot Blockchain shares closed at $24.38 on Tuesday.