Is the cryptocurrency market back? That’s one of the most common questions we hear on the web, as Coinbase was recently approved to offer cryptocurrency futures trading to retail investors in the United States by the National Futures Association (NFA). This is a big win for crypto enthusiasts, as Coinbase previously only offered the derivatives to institutional investors. Some say this has opened the floodgates to potential buyers and sellers of BTC and ETH futures, increasing the currency's adoption in the financial market.
How does this regulatory approval affect the market as a whole?
According to industry expert Denis Sklyarov, co-founder and CEO of WiFi Map, “The approval granted to Coinbase for listing regulated and leveraged crypto futures in the US is a significant milestone in the cryptocurrency industry. It demonstrates digital assets' growing acceptance and integration into traditional financial markets”.
If you are uncomfortable buying the currency derivatives themselves, you may check out companies that mine them as a potential proxy for the currencies’ possible performance. Here are three buy-rated Bitcoin mining companies we think you should watch.
CleanSpark Inc. (CLSK)
CleanSpark, Inc. is an industrial-scale Bitcoin mining and infrastructure company. Its subsidiaries, CleanBlok, Inc. and ATL Data Centers LLC, operate the company’s Bitcoin mining operations. CLSK also owns and maintains actual property holdings through its other subsidiaries, CSRE Property Management Company, CSRE Properties Norcross, LLC, LLC, and CSRE Properties, LLC; it maintains real property holdings for ATL Data Centers LLC and CleanBlok Inc. The company also owns Mawson Infrastructure Group Inc., which provides a Bitcoin mining facility with an output of nearly 560 petahashes per second (PH/s)in Sandersville, Georgia.
CleanSpark recently announced that its acquisitions of new facilities will be going live to further assist in mining operations. These acquisitions are predicted to provide substantial output efficiency in its operations.
Analyst Rating
Analysts have high expectations for CLSK, as everyone covering the company issued it a “Strong Buy” recommendation. The mean target price for CLSK is $11.25, with a high target of $14.00, an upside potential of almost 3x.
Cipher Mining (CIFR)
Cipher Mining Inc. is a technology company that operates and develops bitcoin mining data centers on an industrial scale. Cipher Mining’s operations include four Bitcoin mining data centers in Texas. Its Odessa, Texas facility has a production capacity of approximately 4.2 exahash per second (EH/s). Its chief data center (the “Chief” facility) in Andrews, Texas, is a 10 MW center directly connected to the electrical grid. CIFR also operates another data center in Andrews (“Bear”) and one more in Happy, Texas (“Alborz”).
The company’s plans for a 30MW expansion at its Bear and Chief site will put it in good standing in reaching its target of 8.7 EH/s, just in time for 2024’s Bitcoin halving event.
Analyst Rating
Analysts rate CIFR as a “Strong Buy” based on 4 Strong Buy and 1 Buy recommendation. The mean target price for CIFR is set to $5.10, with a high target price of $6.00, a potential upside of 104%.
Riot Platforms, Inc. (RIOT)
Riot Platforms, Inc. is a Bitcoin mining company supporting the expansion of the evergrowing Bitcoin community’s blockchain. Riot offers services focused on enhancing its Bitcoin mining capabilities and customers' ability to mine Bitcoin at an institutional scale. This is done using the critical and comprehensive mining infrastructure in its 700-megawatt Rockdale facility.
RIOT operates in three main segments:
- Bitcoin Mining
- Engineering
- Data Center Hosting
RIOT currently owns approximately 88,500 miners, which has a capacity of 9.7 exahash per second (EH/s). The company also designs custom-engineered electrical products and manufactures power distribution equipment as part of its engineering segment.
Analyst Rating
RIOT is still one of the top recommendations of analysts in its sector. Experts have high hopes for RIOT with a “Strong Buy” rating from 6 Strong buys,1 Buy, and 1 Hold recommendation. The mean target for RIOT is $18.61, and the high target price is $24.00, with an upside potential of 132%.
Final Thoughts
While some may argue that the cryptocurrency market is still in its early stages, we can’t deny that some investors are bullish on their technological outlook. The increasing adoption and application of cryptocurrencies and their underlying technologies are slowly building a foundation for continued progress. These and their inclusion in the financial markets have added another win for pro-crypto investors.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
