Despite the decline in bitcoin and the overall fall in cryptocurrency markets, H.C. Wainwright analyst Mike Colonnese has assumed coverage of miner Riot Blockchain (NASDAQ: RIOT) with a Buy rating and a $10 per share price target.
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Bitcoin is down over 70% in the last 12 months, falling 64% in 2022 as the overall market declines, piling pressure on bitcoin miners.
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Recently, another miner, Argo Blockchain, revealed its plans to raise £24 million ($27 million) from a strategic investor via a share subscription failed to materialise, and if it didn’t secure new funding, it would have to cease operations.
Riot Blockchain shares are down over 89% in the last 12 months and over 82% so far this year.
However, Colonnese said to investors in a research memo that Riot Blockchain has rapidly grown to be one of the largest, vertically integrated, publicly traded bitcoin miners in the world has rapidly grown to be one of the largest, vertically integrated, publicly traded bitcoin miners in the world.
The analyst believes Riot’s market share should increase to more than 4% by the fourth quarter of 2023, saying the company “continues to rapidly scale operating capacity.”
In addition, he sees Riot as a beneficiary of the “impending industry shakeout resulting from the prolonged period of suppressed” bitcoin prices. Colonnese added Riot is one of the best-positioned miners “to navigate this crypto winter and come out on the other end stronger.”
