Greenidge Generation outperformed other crypto miners, as the Wall Street firm B. Riley hiked the company’s price target and earnings estimates citing its expansion plans.
Greenidge shares (GREE) rose more than 6%, while most crypto miners were down on Tuesday, making the stock’s share price jump all the more notable.
The miner said on Oct. 25 that it is eyeing expansion into Texas and buying a site in South Carolina, as well as doubling its recent order of S19j Pro mining machines from Bitmain to 22,500 units, bringing the total order to 29,000 miners.
The company, which merged with Support.com to go public, also said that it now expects to have an electrical capacity of over 500 megawatts by 2023. The company previously forecast reaching the capacity by 2025.
In a research note, B. Riley analyst Lucas Pipes raised his 2022 adjusted EBITDA estimate for Greenidge to $150.7 million from prior expectations of $115.2 million, citing its larger order for miners, and raised the company’s 12-month price target to $82 per share from $78.
Pipes, who has a buy rating on the stock, also expects the miner to earn adjusted EBITDA of $240.2 million in 2023, a 59% increase from the prior year’s estimate.
B. Riley initiated coverage of Greenidge on Sept. 29, saying the miner’s “low probability of equity dilution is a key differentiation from the peer group.”