Bitcoin Mining Stocks: MARA, Riot, and CleanSpark - What's Going On?

Bitcoin mining stocks have been making waves in the market, with MARA Holdings, Riot Platforms, and CleanSpark leading the charge. As the price of Bitcoin surges, so do the fortunes of these mining companies. But what's driving their recent price movements, and how do their earnings projections align with their current stock prices? Let's dive in and find out.

Bitcoin Price Fluctuations

The share price performance of Bitcoin mining companies is closely tied to Bitcoin prices. When Bitcoin prices surge, mining stocks tend to follow suit, and vice versa. For instance, on Wednesday, February 14, 2024, Bitcoin mining stocks like MARA Holdings, Riot Platforms, and CleanSpark traded higher following softer-than-expected Consumer Price Index (CPI) data, which led to a rally in broader markets and a surge in Bitcoin prices (Barchart, 2024).

Hash Rate and Mining Capacity

The hash rate, or the total number of hashes on a particular decentralized network, is a crucial factor driving mining stock prices. A higher hash rate helps mining companies solve computational puzzles quickly and mine BTC faster. For example, CleanSpark increased its operational capacity by 60% in fiscal Q2 of 2024, enhancing its capacity to more than 17 EH/s, which translated to revenue and profitability growth for the company (Barchart, 2024).

Bitcoin Halving Event

The Bitcoin halving event, which occurs every four years, reduces the mining rewards by 50%. This event can drive share prices lower initially, as the amount of Bitcoin that miners receive is cut in half. However, once Bitcoin prices rise again, mining stocks can benefit from outsized gains. For instance, Riot Platforms' share price trailed the broader markets in 2024 due to the halving event in April 2024 (Barchart, 2024).

Company-specific News and Events

Company-specific news and events, such as acquisitions, partnerships, or operational upgrades, can also impact mining stock prices. For example, Riot Platforms' partnership with Coinbase and its fresh $500 million in raised funds showed that the company is not slowing down, which could have contributed to its stock price increase (Riot Platforms, 2024).

Market Sentiment and Investor Appetite

Market sentiment and investor appetite for risk can also influence mining stock prices. For instance, on Tuesday, February 13, 2024, MARA Holdings' shares crashed due to investors shifting to other higher-yielding assets following better Treasury yields (Why MARA Holdings (MARA) Shares Crashed Yesterday, 2024).



Earnings Projections for CleanSpark (CLSK) and Riot Platforms (RIOT)

Based on the information provided, let's analyze the earnings projections for CleanSpark (CLSK) and Riot Platforms (RIOT) and compare them with their current stock prices.

1. CleanSpark (CLSK):
- Current Stock Price: $10.99
- Forward EPS: $1.31 (as of 2025)
- Forward P/E Ratio: 11
- Average Target Price: $20.70 (indicating an upside potential of 33.3%)

Analysts expect CleanSpark's earnings to grow significantly, with a forward P/E ratio of 11. This suggests that the stock is relatively undervalued at its current price, given its expected earnings growth. The average target price of $20.70 further supports this notion, indicating that analysts believe the stock has room to appreciate by approximately 33.3%.

2. Riot Platforms (RIOT):
- Current Stock Price: $13.30
- Forward EPS: -$0.34 (indicating a loss)
- Forward P/E Ratio: -49.26 (not applicable due to negative EPS)
- Average Target Price: $17.10 (indicating an upside potential of 80.1%)

Riot Platforms is expected to report a loss in the coming year, making the forward P/E ratio not applicable. However, the average target price of $17.10 suggests that analysts believe the stock has significant upside potential, with an 80.1% increase from its current price. This indicates that investors may be focusing more on the company's growth prospects and potential turnaround rather than its current earnings.

In conclusion, both CleanSpark and Riot Platforms have significant upside potential according to analysts' target prices. While CleanSpark's forward P/E ratio suggests that the stock is undervalued at its current price, Riot Platforms' negative forward EPS indicates that investors may be more focused on the company's growth prospects. As the price of Bitcoin continues to fluctuate, so too will the fortunes of these mining stocks. Keep an eye on these companies, as they have the potential to deliver significant returns for investors.