The cryptocurrency frenzy is building each day as investors shift to decentralized currencies amid rising inflation fears and U.S. dollar volatility. Approximately 46 million people, or 17% of the adult population in the United States, own at least some Bitcoin.
The U.S. is rapidly embracing the blockchain currency ecosystem. Fintech companies FIS Ventures and New York Digital Investment Group (NYDIG) recently partnered to enable U.S. commercial banks to offer crypto transactions to their customers through personal accounts. Also, major companies are actively enabling crypto-based transactions for the purchase and sale of goods and services.
Considering these developments, increasing numbers of investors are betting on cryptocurrencies. Furthermore, with the Federal Reserve lagging other central banks in developing digital dollars, the crypto frenzy in the United States is likely to continue in the near term. Thus, Wall Street analysts expect crypto players Marathon Digital Holdings, Inc. (MARA – Get Rating), Riot Blockchain, Inc. (RIOT – Get Rating) and Silvergate Capital Corporation (SI – Get Rating) to garner significant gains in the coming months.
MARA is a digital asset technology company that mines cryptocurrencies for the generation of digital assets. It is one of the largest enterprise cryptocurrency companies in North America. In March, MARA became the first company to launch a North America-based Bitcoin mining pool compliant with U.S. regulations and Office of Foreign Asset Control (OFAC) standards.
Also in March, MARA partnered with DMG Blockchain Solutions Inc. to leverage the latter’s Blockseer pool technology to filter transactions compliant with U.S. regulations. The joint venture is expected to help MARA operate its Bitcoin mining pool at 100% of its mining hashrate.
As one of the first and largest U.S.-regulatory compliant bitcoin pool operators, Wall Street expects MARA to gain traction in the coming months. It has a 12-month $50 price target, which represents 92.7% upside potential.
MARA mined 162.10 bitcoins in April, thereby increasing its total holdings to approximately 5,292 bitcoins as of May 1. The company’s total Bitcoin holdings have a $305.20 million market value. MARA’s revenues increased 1,454.1% year-over-year to $9.20 million in the first quarter, ended March 31, 2021. Its net income and EPS came in at $83.40 million and $0.87, respectively, representing a substantial rise from the negative year-ago values. MARA reported adjusted EBITDA of $137.40 million, representing a significant rise from a $479,000 loss reported in the prior-year quarter.
Analysts expect MARA’s EPS to improve 1,850% year-over-year to $2.10 in its fiscal year 2021. The company’s revenue is expected to rise 6,466.4% from the same period last year to $286.10 million.
RIOT is a well-known cryptocurrency mining company with a focus on Bitcoin mining operations. As of April 30, the company held more than 1,771 self-mined Bitcoins.
RIOT has been working towards implementing environment friendly miners, consistent with the global inclination towards carbon neutrality. The company projects it will utilize 22,946 Antminers using 73 megawatts of energy at a hashrate capacity of 2.3 exahash per second, by the second half of 2021. Wall Street expects this development to be a major driver of the company’s momentum as increasing numbers of investors shift to ESG investing. The stock has a…
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