- H.C. Wainwright reiterates its buy rating on DMG Blockchain.
- The crypto company had its revenue quadruple in fiscal 2022.
- DMG stock has already gained 100% since the start of the year.
Shares of DMG Blockchain Solutions Inc (CVE: DMGI) have already more than doubled this year but an H.C. Wainwright analyst is convinced the stock still has massive room to the upside.
DMG stock has upside to C$1.0 a share
On Thursday, Kevin Dede reiterated his “buy” rating on the blockchain firm. His C$1.0 price objective suggests another 200% upside from here.
The bullish call arrives only days after DMG Blockchain Solutions said a sharp increase in bitcoin mining saw its revenue more than quadruple in fiscal 2022 to C$43.2 million.
DMG closed out the fiscal year at 700 Ph/s up from 15 Ph/s at the end of fiscal 2021, while ending CY22 at 900 PH/s.
DMG Blockchain Solutions is currently pending delivery of Bitmain XP machines that, the analyst noted, will improve its hash rate by another 42 Ph/s.
DMG is well-positioned for greater regulation
Dede likes DMG also for its healthy profit margins. The cryptocurrency company mined 200 bitcoins in its fourth financial quarter at an average cost of about $10,000. The research note reads:
[DMG] is holding approximately C$10.3 million of cash and digital currencies, and little debt, but adding C$1M in December quarter, FY1Q23, merely testing the waters in consideration of funding its 2 Eh/s CY23 mining target.
Other reasons cited for reinforcing the bullish view included its commitment to significantly expanding its footprint in software and services that currently make up only 5.0% of its annual sales.
DMG’s Core+, the analyst concluded, positions it to easily navigate the growing regulations as well.
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As the market for cryptocurrency surges, investors are looking for a piece of the action against the rapidly increasing prices. However, a select few stocks may be undervalued and able to triple from the current price. H.C. Wainwright, a publicly traded holding company that invests in the cryptocurrency and blockchain space, is one such stock.
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The company has also taken measures to ensure its financial stability. In March, the firm executed a $5.5 million private placement offering, which allows the company to bolster its capital. This means H.C. Wainwright will be able to continue to invest in the cryptocurrency and blockchain space, while also weathering any downturns in the market.
Overall, H.C. Wainwright is an exciting stock that could nearly triple from its current price. With its combination of innovative technology and financial stability, the company looks to be well-positioned to take advantage of the cryptocurrency boom. As such, investors who are looking for a piece of the action should consider investing in H.C. Wainwright.
