Riot Blockchain is Cantor's top crypto pick for 2023 due to mining prowess
Dec. 28, 2022 9:32 AM ETRiot Platforms, Inc. (RIOT)By: Jessica Kuruthukulangara, SA News Editor8 Comments
- Cantor Fitzgerald selected Riot Blockchain (NASDAQ:RIOT) as its top pick in the cryptocurrency space in 2023, signaling confidence in its ability to mine more bitcoin than peers and reinvest the proceeds to increase scale.
- "With a best-in-class balance sheet ($255M in cash and no debt), RIOT has, in our view, enough flexibility to navigate a 'crypto-winter', making shares attractive at current levels," said the research firm.
- Cantor noted that Riot's (RIOT) gross margin remains "best-in-class" at ~65% despite bitcoin being down ~65%, thanks to its "unique" energy agreements.
- The broker's bullish stance is in line with Wall Street analysts' ratings on Riot (RIOT).
- However, it contrasts sharply with SA Quant's Strong Sell rating on the stock, owing to its inferior profitability and decelerating momentum.
- SA contributor Leo Imasuen rates Riot (RIOT) Sell as it will likely remain structurally unprofitable for much of 2023.