Bitcoin mining stocks rated as “strong buys” for July 2024
Bitcoin mining stocks: and bitcoin (BTC) mining stocks are attracting the attention of investors who are looking for promising opportunities in the cryptocurrency sector. The recent attempt on the life of former President Trump rocked the political establishment and caused shares held by Bitcoin miners to appreciate as well as drive the price of Bitcoin above $64,000.
Investor concerns over declining income and rising costs following the US introduction of spot Bitcoin ETFs and the halving event caused these stocks to decline earlier in the year. However, according to Econometric, mining supplies for Bitcoin have been progressively catching up to the cryptocurrency itself. The industry has come a long way in terms of process simplification and its inclination toward novel endeavors such as cloud computing and artificial intelligence (AI).
According to sources, businesses like Northern Data are utilizing these adjustments to increase earnings and position Bitcoin mining. In Addition, stocks for potential outperformance. Finbold performed a trend analysis within this framework and determined the top two stocks to watch in July 2024 with a “strong-buy” recommendation.
The stock of Riot Platforms (NASDAQ: RIOT)
The stock of Riot Platforms (NASDAQ: RIOT), which had a 22% increase. In the last month a roughly 2% increase in a single day, has been attracting attention. Analysts and investors widely watch the company’s next earnings report. Revenue is forecast to be $71.08 million, down 7.38% year over year, Bitcoin mining stocks, and EPS is projected at -$0.16, a 5.88% improvement from the previous year.
On Riot Platforms, Roth/MKM keeps a buy recommendation with a $20 price target. Noting that the company is cheap in comparison to its peers. Compared to the peer average of $137 million. Riot’s enterprise value per terahash per second (EV/TH/s) is much lower at $85 million.
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Compared to larger Bitcoin miners with greater valuations, such as CleanSpark (NASDAQ: CLSK). And Marathon Digital Holdings (NASDAQ: MARA), this valuation seems conservative. In comparison to its competitors, Riot has an enterprise value to EBITDA (EV/EBITDA) multiple of 7.9x for 2024, whereas the average is 12.4x. Given Riot’s development potential, especially at its Corsicana facility. Where it is expected to achieve 31 EH/s by the end of 2024, Top bitcoin mining stocks, Roth/MKM believes this discount is unjustified.
According to the company, Riot’s present price isn’t commensurate with its growth prospects, and purchasing shares might result in substantial gains. Riot Platforms is well-positioned for expansion, with a market capitalization of $3.53 billion and an enterprise value of $2.61 billion. The next earnings report is due on July 31, 2024, for the Bitcoin mining stocks list, which is a crucial date.
The stock of Cipher Mining (NASDAQ: CIFR)
Amidst indications of possible takeover interest, Cipher Mining (NASDAQ: CIFR) had a 3.8% increase. In shares lately; the stock has increased by 69.5% since the year’s beginning. The business is allegedly assessing purchase interest with advisors, and Bitcoin mining stocks, while discussions are still preliminary.
With their well-established data center infrastructure. Bitcoin miners like Cipher are becoming more and more appealing acquisition targets as the demand for AI rises. Recent actions in the sector, such as CoreWeave Inc.’s offer to buy. Core Scientific (NASDAQ: CORZ) for around $1 billion, highlights this tendency.
By strategically focusing on obtaining fixed-price, low-cost power agreements at approximately $0.027 per kilowatt hour. Cipher Mining can establish itself as one of the lowest-cost producers. In the Bitcoin mining industry, which greatly increases profitability.
The company continues to be well-positioned financially, with a $2 billion market cap and an enterprise value of $1.78 billion. Its quick and current ratios are both 8.08, indicating excellent liquidity. And its debt-to-equity ratio is 0.02. Valuation measures further show the cipher’s potential. The company’s growth prospects and current undervaluation are reflected. Its trailing P/E ratio is 107.67, and its forward P/E ratio is 21.23. Furthermore, the price-to-book (P/B) ratio is 3.33.