Stronghold Digital Outperforms Peers After DA Davidson Buy Rating

The investment bank initiated its coverage of the bitcoin mining company with a 12-month price target of $42.

Nov 15, 2021 at 7:12 p.m. UTC
Updated Nov 15, 2021 at 7:58 p.m. UTC

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Stronghold Digital (SDIG), the bitcoin mining company that converts coal waste into power for its operations, outperformed its mining peers on Monday after the investment bank DA Davidson slapped a buy rating on the company and said it sees potential for shares to rise more than 50% over the next 12 months.

  • “With the cheapest valuation in our miner coverage, SDIG has the potential to outperform as it executes on its unique strategy,” DA Davidson senior analyst Christopher Brendler wrote.
  • Brendler said Stronghold’s strategy to own and operate its own power-generation plant reduces return on invested capital. At the same time that strategy lowers risks to the company during a bear market and increases long-term potential.
  • The analyst said that supply-chain disruptions have slowed the delivery of miners for Stronghold, but he expects the delays to be “measured in weeks not months” for the company.
  • Stronghold’s stock pared earlier gains but was still faring better than most crypto miners on Monday.
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Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

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