Companies poised for a revenue surge and EBITDA margin expansion as cryptocurrency market heats up
Riot Platforms: Fueling Growth in the Cryptocurrency Frontier
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Riot Platforms (NASDAQ:RIOT) emerges as a sturdy Bitcoin miner at $10.2, poised to potentially double its value in forthcoming quarters amidst favorable cryptocurrency trends.
Highlighted by strong fundamentals, Riot Platforms boasts a cash reserve of $597 million as of December 2023, alongside Bitcoin holdings worth $311 million. Debt-free, the company touts financial flexibility for bold expansion maneuvers.
With a current hash rate of 12.4EH/s, RIOT aims to ramp it up to 31.5EH/s by year-end and an ambitious target of 40.8EH/s by the end of 2025. This trajectory signals prospective exponential growth in revenue and cash flow.
Looking ahead, Riot’s long-term vision to hit a hash rate capacity of 100EH/s spotlights its early-stage growth potential, offering investors an enticing proposition in the evolving crypto landscape.
Coinbase Global: Navigating the Waves of Cryptocurrency
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Amidst a market correction from recent highs of $283, Coinbase (NASDAQ:COIN) stands as a beacon of opportunity in the realm of cryptocurrencies with an undying potential for robust revenue growth and amplified free cash flow.
As the crypto tide surges, expect trading volumes to swell alongside an influx of altcoins into the market. Positioned as one of the premier centralized exchanges, Coinbase is well primed to ride the waves of heightened trading and speculative fervor.
Moreover, the company’s global expansion endeavors, marked by licenses obtained in Singapore and Bermuda in the initial three quarters of 2023, indicate a strategic push into new territories like Canada and Brazil, with further expansions into France and Spain in Q4 2023. These moves augur well for robust revenue upticks in the near future, underpinned by financial flexibility conducive to aggressive organic growth.
Marathon Digital: Mining Opportunities in the Cryptocurrency Space
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Marathon Digital (NASDAQ:MARA) shines as an underrated gem in the realm of Bitcoin mining, offering investors a potential upside of at least 100% post the halving event, driven by expansion plans and the bullish trajectory of Bitcoin.
Having boosted its hash rate to 24.7EH/s by Q4 2023, Marathon Digital eyes an expansion to 35EH/s by year-end and a further escalation to 50EH/s by the conclusion of 2025, setting the stage for robust growth in revenue and cash flows. The company has also forecasted a 50% revenue uptick for 2024, likely accompanied by significant EBITDA margin expansion.
Furthermore, boasting a cash reserve of $425.6 million and Bitcoin holdings valued at $1 billion as of February, Marathon Digital wields substantial flexibility for expansion initiatives in the ensuing two years, displaying resilience and foresight in capitalizing on the burgeoning opportunities in the cryptocurrency sphere.
Author: Faisal Humayun, Senior Research Analyst at InvestorPlace. He brings over 12 years of industry experience in credit research, equity research, and financial modeling, with a specialization in the technology, energy, and commodities sectors.
