Macquarie initiated coverage of several key cryptocurrency mining companies, including Marathon Digital Holdings (NASDAQ:), Core Scientific (CORZ), Clean spark (NASDAQ:), Riot Platforms (NASDAQ:) and Cipher Mining (NASDAQ:), assigning Outperform ratings to all of them.
This complements its existing coverage of Iris Energy (IREN).
Macquarie said in a note to clients that companies are well positioned to benefit from the changing digital asset landscape, especially as they diversify their operations to include AI and high-performance computing (HPC).
The firm highlighted two distinct strategies within the crypto mining sector.
One approach involves miners leveraging their access to energy infrastructure by diversifying into hosting non-cryptocurrency-related services, such as artificial intelligence clients.
However, analysts point out that some miners prefer to focus on accumulating Bitcoin, betting on bullish price forecasts.
However, in most cases, mining capacity growth and/or land/GPU acquisition for HPC/AI is being achieved through the issuance of dilutive shares,” the analysts noted.
Macquarie said Core Scientific (CORZ) and Iris Energy (IREN) stand out for their early adoption of AI-related hosting, with Core Scientific leading the way through a hosting agreement with CoreWeave, which positions it well for the growing demand for AI computing infrastructure.
This is seen as a potential catalyst for significant growth.
Cipher Mining (CIFR) is known to have hit its stride with the completion of its Odessa site and new announcements supporting both Bitcoin mining and HPC. Analysts believe Cipher’s focus on energy efficiency and scalability positions it for a near-term inflection in profitability, and they assign it a $6 price target.
The firm said Riot Platforms (RIOT) continues to be a leader in Bitcoin cooling technology, particularly with its vertically integrated operations that include power management and infrastructure.
Macquarie has set a $15 price target for Riot, acknowledging its potential for operational efficiency.
Finally, Marathon Digital (MARA) and CleanSpark (CLSK) are recognized for their extensive exposure to Bitcoin infrastructure and their acquisition strategies, with target prices of $22 and $20, respectively.
