Cryptocurrency markets have seen a bloodbath recently as cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) suffered unprecedented declines. Although the value of Bitcoin has dropped by more than half by 53% this year and is currently around $ 22,000, Ethereum has dropped by 67.6% and is currently close to $ 1,200.
This carnage in the cryptocurrency markets has profoundly affected companies dealing in cryptocurrencies. Earlier this week, crypto lender Celsius ordered a freeze on the redemption of all withdrawals, exchanges and transfers between accounts, citing extreme market conditions. Binance, the cryptocurrency trading platform, also temporarily stopped bitcoin withdrawals for several hours, citing a blocked transaction that caused a delay.
As a result of this bloodbath, Coinbase (NASDAQ: Currency), a cryptocurrency exchange platform, has reduced its workforce by around 18%.
In this scenario, is there any cryptographic action worth investing in? Using the TipRanks database, we analyzed three cryptographic actions that are still worth a purchase.
Marathon Digital Holdings (NASDAQ: MARA)
The bloodbath in cryptocurrency markets has caused cryptocurrency mining company Marathon Digital to see a 79.1% stock crater this year. MARA shares are currently close to a 52-week low with a closing price of $ 6.87 as of June 15th.
Last week, Marathon Digital released mining production and installation updates for the month of May. Fred Thiel, president and CEO of Marathon, said his bitcoin production in May was negatively affected by “power outages in Texas, along with ongoing maintenance issues at the power station in Hardin, MT.” [Montana]”.
MARA produced 268 “self-extracting bitcoins” in May, and potential global bitcoin production declined by 47% during May due to the problems mentioned above.
The collapse of the cryptocurrency market has caused BTIG analyst Gregory Lewis to lower the target price by more than half to $ 16 from the previous $ 50 while maintaining a buy rating on MARA. Lewis’ target price is the lowest on the street. The analyst’s target price implies a potential rise of 132.9% at current levels.
The analyst believes that bitcoin mining stocks have fallen as cryptocurrencies have fallen, even though the gross margins of bitcoin mining have remained around 65%.
Lewis continues to expect cryptocurrency mining stocks to trade in conjunction with the price of bitcoin and thinks cryptocurrency mining stocks will continue to perform lower due to concerns about funding growth.
Even in this volatile cryptocurrency scenario, analysts remain optimistic about stocks with a Strong Buy consensus rating based on five unanimous purchases. MARA’s average target price is $ 28, which implies a potential rise of 307.6% for current levels.
Silvergate Capital (NYSE: SI)
Silvergate Capital is the parent company of Silvergate Bank, which is headquartered in San Diego and is a “California State Authorized Bank.” Silvergate Bank provides financial infrastructure services and solutions to participants in the digital currency industry.
SI shares fell 56.7% this year as investors were concerned about the company, which offers loans to institutional customers with bitcoins as collateral through its main loan product, the SEN lever.
However, for Wells Fargo analyst Jared Shaw, SI is still a buy as it cited the rise in digital currency customers to 1,503 at the end of the first quarter compared to 1,381 at the end of the fourth quarter. Shaw also noted that Silvergate Capital’s average customer deposits in digital currency increased to $ 14.7 billion during the first quarter compared to $ 13.3 billion during the fourth quarter.
In addition, Shaw opines that “much of the bearish case is priced at the current level” and that the shares have the potential to reach the analyst’s $ 120 price target relative to the current level. The analyst’s target price implies a potential rise of 86.1% at current levels.
The rest of the street analysts echo Shaw and remain optimistic about the stock with a Strong Buy consensus valuation based on eight purchases and a hold. The average target price for SI is $ 175.89, which implies a potential increase of 172.8% for current levels.
Riot Blockchain is a cryptocurrency and digital infrastructure mining company. RIOT shares have fallen dramatically this year by 78.6% from their 52-week high of $ 46.28 and shares are currently nearing their 52-week low with a closing price of $ 4.86 on the 15th. of June.
This stock collapse occurs even though RIOT produced 466 BTC, up 104% year-on-year in May.
However, Roth Capital analyst Darren Aftahi noted that RIOT’s hash rate capacity of 4.6 exahash per second (EH / s) in May was down 2.1% month-on-month “due to deactivation of older model machines as they are refurbished and ready for potential immersion installation. ”
The hash rate capability is a measure of how quickly a cryptographic miner’s machine processes transactions.
But the analyst remains optimistic about RIOT’s growth “in the second half of the year as most orders for RIOT machines this year are scheduled for delivery during 2H22”.
Aftahi has a buy rating and a high street price target of $ 36 per share, which is almost nine times the current price of RIOT shares. The analyst’s target price implies a potential rise of 640.7% at current levels.
Other Wall Street analysts echo Shaw and remain optimistic about RIOT with a consensus rating of Strong Buy based on four unanimous purchases. RIOT’s average target price is $ 25, which implies a potential rise of 414.4% for current levels.
From this list, it is clear that these three cryptocurrency actions could very well withstand the collapse of cryptocurrency.
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