Three bitcoin miners have been recommended for purchase. One has 71% potential

The analytical company Arete started covering three bitcoin miners at once - Riot Platforms, Cipher Mining and Iren, assigning them "buy" ratings. The latter company stands out in particular: its securities have risen in price almost five times since the beginning of the year, with analysts expecting further growth of more than 60%. All these players, having a powerful infrastructure of data centers, earn not only on cryptocurrency mining, but also on the long-term lease of capacity for AI computing.

Arete recommended buying shares of bitcoin miners Riot Platforms, Cipher Mining and Iren, Investor's Business Daily writes. The demand for computing power for artificial intelligence offers long-term opportunities for this business, analysts said.

- They set the target price for Riot shares at $26, which means the potential growth of quotations by 44.4%. At trades on September 25 the company's securities fell by 6.5%, but since the beginning of the year they are in plus by 65%.

- The target for Iren is set at $78, which is 66% more than the company's securities are worth now. On Thursday, they fell in price by almost 4%, while Iren's capitalization has soared by 362% since the beginning of the year.

- Cipher's $24 price target on the stock implies a 71% upside. In trading on Thursday, they also went negative by nearly 9%, while remaining at four-year highs and up about 176% since the beginning of the year.

The least risky investment in Cipher Mining, according to Arete's assessment, is Cipher Mining, as the company uses a joint venture structure and shares capital costs and operational risks with partners, and receives guarantees on lease payments from players such as Google.

Iren, on the other hand, could benefit from self-funding the construction of new data centers as well as upgrading its hardware fleet, analysts said. On Monday, the company announced that it had doubled the capacity of its AI cloud after purchasing another 12,500 GPUs. And an August financial results report revealed that the miner has been awarded "Nvidia's preferred partner" status.

Arete analysts expect Riot to grow EBITDA fivefold - from $463.2 million in 2024 to $2.3 billion by 2031 - by launching two HPC (High-Performance Computing) data centers designed for complex and resource-intensive computing. These sites will also operate on a capacity lease model.

Notably, Roth investment bank analyst Darren Aftahi is even more optimistic about Riot's stock. He raised its target to $42 - the maximum on Wall Street, indicates SeekingAlpha. This benchmark implies a 133% increase in quotes. The increase is due to rising power demand and the approaching launch of the Corsicana data center in Texas. "While management has been cautious about timing, we believe the company is close to more aggressively marketing the site and its specific solutions, and further development will be a key element of negotiations [with new customers]," the analyst predicts.

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