Rosenblatt analyst Chris Brendler initiated coverage of Bitcoin stocks on Friday, citing a premium likely for the stocks due to their entry into the high-performance computing (HPC) business.

Cipher Mining ( CIFR )

Brendler initiated coverage on Cipher Mining ( CIFR ) with a Buy rating and a price target of $6.5.

After a strong 2024 and a start to 2025, the stock has dramatically underperformed in the recent market pullback.

With its largest data center to date, energizing the second quarter of 2025, the company is set to scale rapidly. Brendler expects the company’s 300 MW Barber Lake facility to find an attractive HPC client. This should be a significant catalyst for the stock since the recent sell-off indicates funding issues and an HPC deal should quickly alleviate these concerns.

Brendler projected first-quarter revenue of $47.78 million and an EPS loss of 10 cents.

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Hive Digital Technologies ( HIVE )

Brendler initiated coverage on Hive Digital Technologies ( HIVE ) with a Buy rating and a price target of $6.

HIVE has become one of the more intriguing stocks in the Bitcoin mining sector. On the one hand, the company is set to enter an unprecedented growth phase, with management targeting four times hash rate growth backed by three new hydro-powered data centers in Paraguay. It also has a solid HPC business forecast to grow from a $10 ARR today to $100 million as new hardware comes online this year. Given the analyst’s bullish views on Bitcoin (CRYPTO: BTC) and the low bar, he noted HIVE as a compelling opportunity.

Brendler projected fourth-quarter revenue of $28.8 million and EPS of 11 cents.

Hut 8 ( HUT )

Brendler initiated coverage on Hut 8 ( HUT ) with a Buy rating and a price target of $23.

He also noted that HUT 8’s merger with US Bitcoin is set to unlock significant value for shareholders. The analyst noted that 2025 starts the growth phase of this compelling combination. With multiple revenue streams ramping up as soon as the first quarter of 2025 and high-margin HPC expected to come online before the year ends 2025, he noted that the stock is still cheap despite the recent outperformance.

Brendler projected first-quarter revenue of $25.26 million and an EPS loss of 24 cents.

MARA Holdings ( MARA )

Rosenblatt analyst Chris Brendler initiated coverage on MARA Holdings ( MARA ) with a Buy rating and a price target of $19.

In a sector that has proven challenging to develop actual competitive advantages, Brendler noted MARA is a clear leader. It is the undisputed market leader among public miners and has taken full advantage of its industry-leading scale. Its 6% market share is 30% above its closest rival, its Bitcoin HODL is almost more significant than the next 10 peers combined, and its tech stack is unmatched.

It now owns most of its 1.5 GW power portfolio across 16 sites worldwide, which should continue to drive improving gross margins. MARA is among the most levered to his bullish Bitcoin views, yet the stock has underperformed due to macro concerns about interest rates and its aggressive share issuance. Brendler noted this dynamic as a buying opportunity.

Brendler projected first-quarter revenue of $222.94 million and adjusted EPS of 32 cents.

Price Actions: CIFR stock is down 1.25% at $3.69 at last check Friday. HIVE is up 1.85%. HUT is down 5.44%. MARA is up 0.09%.

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