In a report released today, Mike Colonnese from H.C. Wainwright reiterated a Hold rating on HIVE Blockchain Technologies (HIVE – Research Report), with a price target of $3.50.
Mike Colonnese’s Hold rating on HIVE Blockchain Technologies is influenced by a combination of factors including the company’s performance and future operational targets. The third fiscal quarter of 2024 showed positive results, with improved top-line figures and a return to positive adjusted EBITDA. This was largely due to a rise in Bitcoin prices and increased transaction fees. However, Colonnese notes that HIVE’s production costs are relatively high compared to its peers, primarily because of above-average power costs and a less efficient fleet of ASIC miners. Although there are plans to upgrade the fleet with more efficient S21 and S19k Pro miners, which should improve fleet efficiency, concerns remain regarding the company’s ability to meet its operational targets.
The Hold rating also stems from skepticism about HIVE’s ability to significantly scale its Bitcoin mining operations and its high-performance computing (HPC) business to meet the ambitious goals set for the end of the calendar year 2024. Despite showing a strong increase in revenues quarter-over-quarter and a healthy gross profit margin improvement, the report casts doubt on whether HIVE can materially scale operations as previously indicated. Furthermore, the company’s history of hash rate guidance being a “moving target” adds to the uncertainty. Thus, while acknowledging the company’s positive short-term financial outcomes, Colonnese maintains a cautious outlook on its ambitious expansion plans, reinforcing the decision to issue a Hold rating.
According to TipRanks, Colonnese is a 5-star analyst with an average return of 72.3% and a 71.43% success rate. Colonnese covers the Financial sector, focusing on stocks such as Cleanspark, HIVE Blockchain Technologies, and Iris Energy.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
HIVE Blockchain Technologies (HIVE) Company Description:
HIVE Blockchain Technologies Ltd. engages in building a bridge from the blockchain sector to traditional capital markets. It also involves in the production of mined cryptocurrency like Ethereum around the clock. Its project include Iceland Cryptocurrency Mining. The company was founded on June 24, 1987 and is headquartered in Vancouver, Canada.
Read More on HIVE:
