The cryptocurrency market is currently experiencing a downturn, with widespread bearish sentiment triggering a wave of selling. While this has been unwelcome news for the values of various tokens and blockchain-related stocks, some investors are viewing the situation as an opportunity to add promising high-tech holdings to their portfolios. Several stocks have recently hit new 50-day lows, creating what some see as attractive entry points for investors looking to increase their exposure to the evolving blockchain technology sector.
Digihost Technology Sees Shares Hover at $1
Digihost Technology (NASDAQ: DGHI) saw its shares decline to a new 50-day low on a recent Monday, with shares reaching $1.16 during extended trading. This followed a year-long struggle for the company’s share values, resulting in a one-year return of -24.48%. However, new analyst estimates suggest that the worst may be over for Digihost. Despite the challenges in share price, analyst consensus ratings place Digihost Technologies as a Buy, with a predicted upside of 115.52% expected by analysts who have assessed the stock. Supporting this optimistic outlook, short interest trends have decreased, with interest rates falling by 6.3% during the past month. Considering the influence of Bitcoin pricing on this mining stock’s valuation, this may be the lowest potential entry point investors have seen since late 2023.
HUT Sees High Analyst Expectations Despite Price Dips
Hut 8 (NASDAQ: HUT) is engaged in the acquisition, construction, management, and operation of data centers designed for digital asset mining, in addition to offering various artificial intelligence (AI) applications. By providing exposure to both the mining technology used for virtual currencies and the competitive AI industry, HUT could represent a worthwhile long-term investment for growth-oriented investors. Much of the market’s pessimism surrounding HUT can be attributed to its Bitcoin mining operations, which may cause share prices to decline in parallel with asset prices. Despite this, analysts maintain high expectations for Hut 8 over the next year, assigning a consensus Buy rating and establishing a price target that is more than 160% above its current 50-day low price of $11.48 per share.
Riot Platforms Maintains a Solid Buy Rating
Another mining service provider severely impacted by the recent Bitcoin sell-off, Riot Platforms (NASDAQ: RIOT), had its shares reach $7.56, marking a new 50-day low on a recent Monday. Despite this decline of almost 10%, analysts have maintained optimistic recommendations for the blockchain tech company, which holds a consensus Buy rating, along with a potential price upside exceeding 130%. Analyst expectations for Riot have been consistently positive for months, particularly as the company focuses on AI/HPC to maintain competitiveness with other mining operations such as MARA Holdings. Positive trends in institutional buying offer further encouragement, with institutional purchases reaching $533 million in shares purchased during the fourth quarter of 2024, a significant increase from just $22 million in the earlier quarter.
Analysts Expect Great Things From IREN, With a 200% Anticipated Upside
Iris Energy (NASDAQ: IREN), headquartered in Australia, presents another option for international blockchain exposure. Despite reaching a recent 50-day low of $6.62 per share, analysts rate this stock a Moderate Buy with a $20.70 price target, suggesting a potential return of over 212%. This elevated price target is further supported by Iris Energy’s recent earnings reports, which beat estimates and shifted the company from a negative to a positive EPS (Earnings Per Share). Its P/B (Price-to-Book) ratio also points to the company’s potential, with a current value of 0.97 indicating that shares may be undervalued compared to assets held. Moreover, the company has expanded its mining capacity, positioning itself for future growth in the sector. Due to its strong fundamentals and a favorable industry outlook, Iris Energy could be a beneficial option for blockchain investors.
