Here’s What You Missed in Crypto This Week

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week’s top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.

RIOT REPORTS 2023 EARNINGS: On Thursday, Riot Platforms (RIOT) reported 2023 loss per share of (28c) on revenue of $280.7M, which compared to analyst consensus of a loss per share of (90c) on revenue of $288.43M. The company produced 6,626 bitcoin, as compared to 5,554 during the same twelve-month period in 2022. “I am pleased to announce results for Riot for 2023, which proved to be another milestone year in Riot’s ongoing development as a leading vertically integrated bitcoin miner,” said Jason Les, CEO. “We achieved record results in 2023, generating all-time highs of $281M in total revenues, 6,626 bitcoin produced, and $71M in power credits earned from our unique power strategy…At the same time, Riot has also further enhanced our already industry-leading balance sheet strength, ending 2023 with approximately $597M in cash, 7,362 bitcoin, worth approximately $311M based on year-end bitcoin prices, and nominal long-term debt. As a leading vertically integrated bitcoin miner, coupling development of our Corsicana Facility with a secured supply of leading-edge miners from MicroBT, and our strong balance sheet gives Riot the most secure, visible path in our industry to achieving our growth plans. Our targets are to reach 28 EH/s in total hash rate capacity by the end of 2024, 38 EH/s by the end of 2025, and ultimately 100 EH/s and beyond.” (read more)

COINBASE PRICE TARGET RAISE: On Thursday, Mizuho raised the firm’s price target on Coinbase (COIN) to $84 from $60 and kept an Underperform rating on the shares. The stock is up more than 160% over the last 12 months, which has resulted in a “lofty” 26-times 2025 consensus EBITDA multiple, the analyst stated. The firm said this is well above the median 11-15 times for peers in payments, exchanges, and asset managers. Its sum-of-the-parts analysis points to 40% potential downside in Coinbase shares, even when applying “lavish” EBITDA margins and multiples to the transaction, subscription and services and interest income revenue streams. (read more)

MICROSTRATEGY PRICE TARGET RAISE: BTIG raised the firm’s price target on MicroStrategy (MSTR) on Thursday to $780 from $650 and kept a Buy rating on the shares. The recent strength in the shares has been driven by the 20% rally in the price of bitcoin since the company reported its Q4 earnings on February 6, the analyst said. The firm continues to see MicroStrategy as the best avenue for investors to gain bitcoin exposure due to its “unique attributes” compared to a spot bitcoin exchange traded fund or buying bitcoin directly. (read more)

GALAXY DIGITAL INITIATED WITH BUY: On Tuesday, Canaccord initiated coverage of Galaxy Digital (BRPHF) with a Buy rating and C$17 price target. With both balance sheet and operating exposure to the crypto ecosystem, Galaxy represents one of the most diversified ways to play digital assets, the analyst said. The firm believes Galaxy is well positioned against an improving landscape for digital assets in 2024. (read more)

IRIS ENERGY PRICE TARGET RAISE: B. Riley raised the firm’s price target on Iris Energy (IREN) on Wednesday to $10 from $8 and kept a Buy rating on the shares. Iris Energy reported adjusted EBITDA in Q1 and Q2 of $6.8M and $14M, respectively, driven by higher electricity and other costs, below the firm’s estimates, the analyst said. Financing is underway to support further growth in the AI cloud business, the firm said. (read more)

Meanwhile on Thursday, Canaccord raised the firm’s price target on Iris Energy to $9 from $8 and kept a Buy rating on the shares. The firm continues to see solid execution on infrastructure development and bringing capacity online and they view the company as well positioned with a new fleet of miners, combined with cheap green power and a growing AI cloud services business. (read more)

CRYPTO STOCK PLAYS: Publicly traded companies in the space include Bit Digital (BTBT), Coinbase, Core Scientific (CORZ), Greenidge Generation (GREE), Marathon Digital (MARA), MicroStrategy, Riot Platforms, Stronghold Digital Mining (SDIG) and TeraWulf (WULF).

PRICE ACTION: As of time of writing, bitcoin dropped roughly 2% this week to $51,118 in U.S. dollars, according to CoinDesk.