3 Crypto Mining Stocks with a Strong Buy Rating Consensus

NASDAQ: MARA | Marathon Digital Holdings Inc. News, Ratings, and Charts

MARA – Chinese regulators’ crackdown on crypto mining has pushed the United States to the fore as the leading destination for crypto miners. Investors’ interest in the crypto mining market is evidenced by the first bitcoin futures ETF’s handsome returns in its trading debut. Considering the industry’s immense growth prospects, Wall Street analysts have rated Marathon Digital (MARA), Riot Blockchain (RIOT), and Hut 8 Mining (HUT) as ‘Strong Buy.’ So, let’s take a closer look at these names.

The cryptocurrency economy is growing at an impressive rate. China has been the market leader in crypto mining, but Beijing’s crackdown on cryptocurrency made crypto mining off-limits for investors. “The whole narrative of China controls bitcoin is now completely destroyed,” asserted Boaz Sobrado, a London-based fintech data analyst. This has made the United States the prime destination for bitcoin miners. According to the Cambridge Centre for Alternative Finance, U.S. bitcoin’s hash rate has increased 428% since September 2020. Hash rate is an industry term used to describe the collective computing power of miners.

The global cryptocurrency mining market is expected to grow at a 16.1% CAGR to $1.61 billion by 2025. And the newly debuted ProShares Bitcoin Strategy ETF (BITO) jumped 4.8% and traded  $984 million in volume in its first trading session on Tuesday.

Given this backdrop, Wall Street analysts expect crypto mining stocks of Marathon Digital Holdings, Inc. (MARA), Riot Blockchain, Inc. (RIOT), and Hut 8 Mining Corp. (HUT) to gain considerably in the near term. The analysts have rated these stocks ‘Strong Buy.’

Click here  to check out our Cryptocurrency Industry Report for 2021

Marathon Digital Holdings, Inc. (MARA)

Las Vegas-based MARA is a digital asset technology company that is focused primarily on mining cryptocurrencies on the blockchain ecosystem and operates as a digital asset generator in the United States.

On September 9, MARA announced that Canadian blockchain and cryptocurrency technology company DMG Blockchain Solutions Inc. (DMGGF) would join MaraPool, MARA’s bitcoin mining pool. This partnership is expected to cater to the needs of North American miners and enhance the mining experience.

On September 1, the company declared its collaboration with financial services and technology firm New York Digital Investment Group LLC (NYDIG) to provide members of MaraPool with NYDIG’s institutional-grade services. The collaboration might benefit MARA by providing MaraPool miners with world-class solutions and valuable expertise.

In its second fiscal quarter, ended June 30, MARA’s total revenues increased 10,146.6% year-over-year to $29.32 million. Its non-GAAP income from operations came in at $20.06 million, registering a substantial increase from its negative year-ago value.

A $0.74 consensus EPS estimate for the current quarter (ending December 2021) indicates a 1,025% year-over-year increase. Likewise, the $119.07 million consensus revenue estimate for the current quarter reflects a 4,403.4% improvement from the prior-year quarter.

The stock has gained 2,203.9% in price over the past year and 416.4% year-to-date to close yesterday’s trading session at $53.91.

All four analysts rating the stock have rated it Buy. The 12-month median price target of $62.50 indicates a 15.9% potential upside. The price targets range from a low of $48.00 to a high of $87.00. MARA has a ‘Strong Buy’ rating.

Riot Blockchain, Inc. (RIOT)

RIOT, with its subsidiaries, is engaged in a cryptocurrency mining operation in North America. The Castle Rock, Colo., company is focused primarily on Bitcoin mining with a large fleet of publicly-traded miners.

On October 19, RIOT announced the development of an immersion-cooling technology at its Whinstone facility for bitcoin mining hardware cooling. Regarding this development, Jason Les, RIOT’s CEO, said, “By leveraging technology, industry-leading low power costs, and economies of scale, Riot intends to continue driving operating and capital efficiencies for its self-mining business and its institutional clients. Due to these efficiencies, we anticipate observing an increase in the company’s hash rate and productivity through 2022, without having to rely solely on purchasing additional ASICs.”

RIOT’s total revenue increased 1,668.7% year-over-year to $34.35 million in its second fiscal quarter, ended June 30. This can be attributed to a 1,539.7% increase in net revenue from cryptocurrency mining versus the prior-year quarter to $31.45 million. Its net income and net income per share stood at $19.34 million and $0.22, respectively, both up substantially from their negative year-ago values.

The Street’s $0.41 EPS estimate for the current quarter (ending December 2021) reflects a rise of 156.2% from the prior-year quarter. The Street’s $94.45 million revenue estimate for the current quarter indicates a 1,685.1% improvement from the same period last year. Moreover, RIOT has an impressive earnings surprise history; it has topped the consensus EPS estimates in three out of the trailing four quarters.

RIOT’s stock has gained 834.2% in price over the past year to close yesterday’s trading session at $30.83. It has gained 81.5% year-to-date.

RIOT has a ‘Strong Buy’ analyst rating consensus. All five analysts rating RIOT have rated the stock Buy. The $46.60 12-month median price target indicates a 51.2% potential upside. The price targets range from a low of $42.00 to a high of $51.00

Hut 8 Mining Corp. (HUT)

HUT is a Canada-based cryptocurrency mining company that engages in industrial-scale bitcoin mining operations in North America.

On September 17, HUT closed a public offering of common shares at $8.55 per share. The proceeds from the offering are expected to be used to fund digital assets and potential strategic partnerships and acquisitions.

In September, the company announced that it had achieved a key milestone in its partnership with blockchain and AI technology company MicroBT with the inception of a repair services agreement that enables HUT to take up in-warranty work for MicroBT miners. The company expects the agreement to provide long-term financial benefits for the company and reduce machine downtime.

For its second fiscal quarter ended June 30, HUT’s total revenue increased 263.5% year-over-year to CAD33.55 million ($27.16 million). Its mining profit climbed 2,646.6% from the prior-year quarter to CAD19.14 million ($15.50 million). Its Adjusted EBITDA improved 21,986.2% from the same period last year to CAD14.36 million ($11.62 million).

Analysts expect its EPS to increase 147.3% year-over-year in the current year (fiscal 2021) to $0.39. The $150.66 million consensus revenue estimate for the current year indicates a 367% rise from the prior year.

The stock has gained 1,455.1% in price over the past year and 336% year-to-date to close yesterday’s trading session at $11.99.

Street analysts have rated the stock ‘Strong Buy.’ All four analysts that rated HUT have rated it Buy. The 12-month median price target of $13.93 indicates a 16.2% potential upside. The price targets range from a low of $9.71 to a high of $20.00.

Click here  to check out our Cryptocurrency Industry Report for 2021


MARA shares were trading at $54.05 per share on Wednesday afternoon, up $0.14 (+0.26%). Year-to-date, MARA has gained 417.72%, versus a 22.13% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MARAGet RatingGet RatingGet Rating
RIOTGet RatingGet RatingGet Rating
HUTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Marathon Digital Holdings Inc. (MARA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MARA News