Cuts Miner Stronghold’s Target by 40% of Earnings
The target price of Bitcoin miner Stronghold Digital's (SDIG) has been reduced by 40% to $ 25 in terms of slower performance than expected and supply chain challenges across the sector, said investment banking company DA Davidson. on point.
"Previously, our Stronghold model was largely based on IPO prediction but due to slower progress than expected and supply chain across the sector, we think it make sens to be vigilant," DA Davidson analyst Chris said. Brendler wrote the article, published Tuesday.
DA Davidson expects the miner to gain 6.4 exahash perhash per second (EH / s) of 2022 and 12.6 EH / s from 2023, down from previous estimates of 7.4 EH / s and 14.4 EH / s. Wall Street Bank also reduced miner's income and profits ahead of interest rates, taxes, depreciation (EBITDA) for both years.
However, Brendler thinks the stock is still much cheaper as the performance of Stronghold's coal mines will cost more than other miners, who will see higher energy costs due to rising energy prices.
Stronghold's stock is limited to buying and the miner is set to report his fourth-quarter profits on Tuesday in the postal market.
The miner's shares have fallen by about 66% since they started trading on October 20, while bitcoin has dropped by 22% over the same period. The stock has dropped by about 2% during the pre-trading period, while many peers are down.
