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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.
By Aoyon Ashraf
Updated May 11, 2023, 7:06 p.m. Published Nov 15, 2021, 7:12 p.m.
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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.
- On Oct. 20, Stronghold shares opened 42% higher than its initial public offering price of $19.
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UK appoints HSBC for blockchain bond pilot
The Treasury appointed banking giant and law firm Ashurst to steer its digital gilt trial this year as Britain plays catch-up to Hong Kong and Luxembourg.
What to know:
- The pilot will run inside the Bank of England's "digital sandbox," allowing the tokenized government bond to be tested under relaxed regulatory rules before any permanent market structure changes.
- The banking giant has already orchestrated over $3.5 billion in digital bond issuances through its proprietary Orion system, including Hong Kong's $1.3 billion green bond — one of the largest tokenized debt sales to date.
- Industry experts note that even if the pilot succeeds, full-scale adoption of digital gilts will need new laws and clarified tax treatment before becoming a standard feature of UK debt markets.
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