Crypto stocks and Bitcoin (BTC-USD) have bounced back strongly from the steep fall seen last year due to soaring interest rates, macro pressures, and the collapse of FTX and other crypto firms. While regulatory concerns and high volatility continue to make crypto stocks risky, there are several analysts who are bullish on the crypto space. Using TipRanks’ Stock Comparison Tool, we placed Coinbase Global (NASDAQ:COIN), Marathon Digital (NASDAQ:MARA), and Riot Platforms (NASDAQ:RIOT) against each other to find the most attractive crypto stock, as per Wall Street analysts.
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Coinbase Global (NASDAQ:COIN)
Crypto exchange Coinbase Global has been in the news in recent months due to heightened regulatory pressures. In particular, the U.S. Securities and Exchange Commission (SEC) sued the company for allegedly selling unregistered securities in violation of the federal securities law.
Despite the regulatory woes, COIN shares have rallied about 128% so this year. The company recently reported better-than-anticipated second-quarter results. Revenue declined 12.4% to about $708 million but exceeded analysts’ expectations.
Moreover, the company’s loss per share narrowed considerably to $0.42 from $4.98 in the prior-year quarter and was way better than analysts’ expectation of a loss per share of $0.76. The bottom line gained from lower costs and a surge in interest income.
That said, investors were not pleased with the sequential decline in Q2 2023 trading volumes and the company’s Q3 2023 guidance for subscriptions and services.
Is Coinbase a Buy or Sell?
On August 8, Piper Sandler analyst Patrick Moley raised his price target for Coinbase to $80 from $60 and maintained a Hold rating. The analyst highlighted that the company’s “retail fee capture” again reached the highest level since at least 2018.
Nevertheless, Moley said that he would like to see more progress on the regulatory front and a convincing turnaround in the fundamentals of COIN’s business before becoming more positive on the stock.
Wall Street is sidelined on COIN stock, with a Hold consensus rating based on six Buys, eight Holds, and eight Sells. The average price target of $80.68 implies that the stock could be range bound from current levels.
Marathon Digital Holdings (NASDAQ:MARA)
Marathon Digital is one of the leading cryptocurrency miners. Last week, the company reported second-quarter results that lagged analysts’ estimates. Marathon’s revenue surged to $81.8 million from $24.9 million in the year-ago quarter, fueled by a 314% rise in Bitcoin production.
The strong top-line growth helped narrow the reported loss per share to $0.13 from $1.94 in the prior-year quarter. However, analysts were expecting a loss per share of $0.06 on revenue of $83.4 million.
Nonetheless, the company touted the impressive growth in its hash rate and efficiency in the second quarter. Marathon’s hash rate increased 54% to 17.7 Exahashes per second (EH/s) in Q2 2023 compared to the first quarter and was significantly up when compared to a hash rate of 0.7 EH/s in the prior-year quarter.
The company is targeting an operational hash rate of 23 EH/s through its new facilities in Ellendale, North Dakota and Garden City, Texas. Management is confident about hitting this operational hash rate target, given that following installations in July and early August at its Garden City, Texas site, the company’s installed hash rate reached 23 EH/s.
What is MARA Stock Price Target?
In reaction to the Q2 2023 results reported last week, Compass Point analyst Chase White marginally reduced his price target for Marathon Digital to $20 from $21 and reiterated a Buy rating. White said that he was slightly lowering his 2023 and 2024 estimates to reflect higher power costs and operating expenses.
With two Buys and two Holds, Marathon Digital scores a Moderate Buy consensus rating. The average price target of $16.50 implies 10% upside. Shares have jumped over 338% year-to-date.
Riot Platforms (NASDAQ:RIOT)
Riot Platforms is one of the largest publicly traded Bitcoin miners in North America. RIOT shares have rebounded strongly from last year’s slump due to the rise in Bitcoin prices and the aggressive expansion of its mining capacity.
Last week, the company reported mixed results for the second quarter of 2023. While revenue missed analysts’ estimates, the company reported a lower-than-anticipated loss for the second quarter. Riot’s loss per share narrowed to $0.17 per share compared to $2.71 per share in the prior-year quarter. The bottom line gained from a 27% rise in Bitcoin production and a reduction in the average cost to mine Bitcoin.
Is Riot Stock a Buy Now?
Reacting to the results, Roth MKM analyst Darren Aftahi reiterated a Buy rating on RIOT stock and slightly raised the price target to $19.50 from $18.50, citing an improved mining outlook, strong liquidity, and the company’s push for increasing its scale.
Aftahi highlighted that the company’s Q2 2023 results were marked by a 19% quarter-over-quarter reduction in the cost to mine and about $13.5 million in power credits. The analyst expects power credits to play a vital role in improving efficiency in the second half of the year. The analyst thinks that Riot Platforms has the potential to almost triple its hash rate from 10.7 EH/s to about 35 EH/s by the end of 2025.
Riot Platforms stock scores a Strong Buy consensus rating based on eight unanimous Buys. The average price target of $20.19 implies about 38% upside potential. Shares have skyrocketed over 332% since the start of this year.
Conclusion
Wall Street is highly bullish on Riot Platforms while it is sidelined on Coinbase and cautiously optimistic about Marathon Digital. Despite a stellar year-to-date rally, analysts see further upside in Riot Platforms stock. Nevertheless, investors should consider the high risks and volatility associated with crypto stocks before making any investment decisions.
