Wall Street is Bullish on These 2 Crypto Stocks: CleanSpark and Riot Blockchain

: RIOT | Riot Blockchain Inc. News, Ratings, and Charts

RIOT – Cryptocurrencies have experienced tremendous volatility since the beginning of the year, dragging crypto-related stocks down in price. However, President Biden’s executive order this week to examine the risks and scope of cryptocurrencies could renew investors’ attention on crypto-related stocks. Wall Street analysts are bullish on Riot Blockchain (RIOT) and CleanSpark (CLSK). So, these stocks could be good additions to one’s watchlist. Let’s discuss.

Cryptocurrencies have been exhibiting significant volatility since the beginning of the year. The Fed’s forthcoming interest rate increases, and multi-year-high inflation are the primary reasons behind this volatility. Furthermore, the Russia-Ukraine war has also fostered volatility in cryptocurrencies. This, along with the stock market sell-offs, has led to many crypto-related stocks suffering a downtrend.

Last year was a breakout year for cryptocurrencies, which experienced significant volatility and delivered strong returns. Popular cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), steered several investors to massive profits. Due to the growing popularity and acceptability of cryptocurrencies, President Biden this week signed an executive order to examine the risks and benefits of cryptocurrencies. The order has called on Federal agencies to take a unified approach in regulating and overseeing digital assets.

While the near-term prospects for digital currencies look uncertain, the executive order could renew investors’ attention on crypto stocks. Indeed, Wall Street analysts are bullish on crypto stocks Riot Blockchain, Inc. (RIOT) and CleanSpark, Inc. (CLSK). So, it could be wise to add these stocks to one’s watchlist.

Riot Blockchain, Inc. (RIOT)

RIOT is involved in cryptocurrency mining and the overall blockchain system through various investments. The Castle Rock, Colo.-based company has deployed approximately 8,000 application-specific integrated circuit miners at its cryptocurrency mining facility in Oklahoma. In addition, its subsidiary Tess Inc. seeks to develop a blockchain-based escrow service for wholesale telecom carriers.

On Dec. 1, 2021, RIOT announced that it had acquired Ferrie Franzmann Industries, LLC (ESS Metron) for roughly $50 million. ESS Metron designs and produces highly engineered electrical equipment solutions that are highly useful for deploying bitcoin mining operations at scale. This acquisition is vital for RIOT because it will likely complement its ongoing infrastructure expansion to 700 MW and significantly improve its internal engineering capabilities.

RIOT’s total revenue for its fiscal third quarter, ended Sept.30, 2021, increased 2,532.3% year-over-year to $64.80 million. The company’s mining revenue grew 2,099% year-over-year to $53.60 million. In addition, its adjusted EBITDA came in at $37.57 million compared to a $0.40 million loss in the year-ago period.

Analysts expect RIOT’s EPS and revenue for its fiscal year 2021 to increase 233.3% and 1,644.5%, respectively, year-over-year to $0.40 and $210.75 million. The stock surpassed the Street’s EPS estimates in three of the trailing four quarters. And over the past year, the stock has declined 70.7% in price to close the last trading session at $16.51. However, Wall Street analysts expect the stock to hit $44.75 in the near term, indicating a potential 171% upside.

CleanSpark, Inc. (CLSK)

CLSK in Woods Cross, Utah, provides bitcoin mining and energy technology solutions worldwide. The company provides software and technology solutions that are focused on solving modern energy challenges. It operates in the Digital Currency Mining and Energy segments. The Digital Currency Mining segment mines for bitcoin, while the Energy segment provides engineering, design and software, custom hardware, and other solutions for microgrids and distributed energy systems to military, commercial, and residential customers.

On Oct. 12, 2021, CLSK announced the purchase of 4,500 units of Antminer S19 bitcoin mining machine, partially funded through its bitcoin holdings. According to CLSK, its sustainable bitcoin mining capacity will increase by a computing power of 450 PH/S, equivalent to its current capacity, after the new machines are operational. New mining machines should help the company increase its revenues. CEO of CLSK Zach Bradford said, “By making a conscious effort to reinvest in additional production, we are taking a market-based approach to our mining operations and maximizing value for our shareholders.”

For its fiscal first quarter, ended Dec. 31, 2021, CLSK’s revenues increased 1,726.8% year-over-year to $41.24 million. The company’s adjusted EBITDA came in at $24.10 million, compared to a $2.74 million adjusted EBITDA loss in the year-ago period. Also, its net income came in at $14.48 million, compared to a $7.16 million net loss in the year-ago period.

For its fiscal year 2022, CLSK’s EPS and revenue are expected to increase 277.3% and 269.5%, respectively, year-over-year to $1.33 and $182.65 million. And over the past year, the stock has gained 58.8% in price to close the last trading session at $11.09. However, Wall Street analysts expect the stock to hit $23 in the near term, indicating a potential 107.4% upside.


RIOT shares were trading at $15.87 per share on Friday morning, down $0.64 (-3.88%). Year-to-date, RIOT has declined -28.93%, versus a -10.34% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
RIOTGet RatingGet RatingGet Rating
CLSKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bulls in Charge…for Now at Least

Every since the S&P 500 (SPY) made new lows in mid June the bulls have been back in charge. At first it looked like your typical bear market rally. However, there are more and more signals going off that this may be the real deal. As in the new bull market may have arrived. That topic is a big deal as one's outlook, bullish or bearish, weighs heavily on how they construct their portfolio for the days and weeks ahead. That is why we will focus on that topic in today's commentary. Read on below for more…

:  |  News, Ratings, and Charts

The 3 Best Nasdaq 100 Stocks to Buy Now

The significant improvement in the inflation story has boosted investors’ confidence. However, market volatility is rife, and despite the uncertainties, the Nasdaq 100 has witnessed significant gains. Therefore, quality Nasdaq 100 stocks Johnson & Johnson (JNJ), Procter & Gamble (PG), and Novo Nordisk (NVO) could be ideal additions to your portfolio now. Let’s discuss the stocks in detail…

:  |  News, Ratings, and Charts

How to RIDE the Next Bull Market?

Growth stocks are back! And, they are leading the S&P 500 (SPY) higher after the brutal bear market investors experienced this year. Read on to find out the best strategy to profit from the next big bull market in growth stocks...

:  |  News, Ratings, and Charts

2 REITs to Buy and Hold for Decades

Despite the macroeconomic headwinds, real estate investment trusts (REITs) are expected to remain resilient due to rising demand, appreciation of property prices amid the high inflation, and increasing rental income. Moreover, REITs are considered ideal investments in uncertain market conditions since they pay out at least 90% of their income as dividends. So, quality REITs LTC Properties (LTC) and Getty Realty (GTY) could be ideal investments to survive the short-term market fluctuations and create solid long-term returns. Continue reading…

:  |  News, Ratings, and Charts

How to RIDE the Next Bull Market?

Growth stocks are back! And, they are leading the S&P 500 (SPY) higher after the brutal bear market investors experienced this year. Read on to find out the best strategy to profit from the next big bull market in growth stocks...

Read More Stories

More Riot Blockchain Inc. (RIOT) News View All

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