Cryptocurrency Stocks Rise Despite Piper Sandler Price Target Cuts: MARA and Hut 8 Gain 4%, Riot Holds Flat

Cryptocurrency mining stocks are brushing off a fresh round of analyst price target cuts, and buyers are stepping back in after a sharp selloff. MARA Holdings (NASDAQ:MARA | MARA Price Prediction) stock is rising 4% to $7.65 this afternoon. Similarly, Hut 8 (NASDAQ:HUT) shares are up 4% to $70.61, keeping pace with MARA stock.

Riot Platforms (NASDAQ:RIOT) stock is lagging both peers, up by only 0.5% to $14.04. Piper Sandler cut its price targets on MARA, Riot and Hut 8 shares in the same note, so the gains in MARA and Hut 8 shares show buyers treating the cuts as largely priced in.

Bitcoin (CRYPTO:BTC) is up 0.7% to $82,519 over a 24-hour window, well behind the rally in MARA or Hut 8 shares. That gap suggests MARA and Hut 8 shares are rallying more on their own rebound than on any lift from the cryptocurrency.

Piper Sandler Trims Targets on Rate and Credit Worries

In a new note, Piper Sandler analyst Patrick Moley cut price targets on MARA, Riot and Hut 8 shares, citing hotter inflation and higher oil prices that revived rate-hike concerns. Moley also pointed to credit markets repricing the debt that funds data center buildouts, along with uncertainty over planned AI capital spending. Each of those factors points straight at the financing behind data center plans at MARA, Riot and Hut 8.

Piper Sandler still maintained that MARA, Riot and Hut 8 shares look attractive after their recent selloff, and the firm kept an Overweight rating on MARA stock. Trading in MARA, Riot and Hut 8 shares initially turned lower after the note before reversing higher.

Cantor Fitzgerald had already cut its price targets on Riot and Hut 8 shares on October 16, so Piper Sandler’s note adds to a string of recent reductions for both names. Hut 8 stock is rallying through both rounds of cuts, while Riot stock is barely moving.

Power Sites Tie Miners to Bitcoin and Borrowing Costs

MARA, Riot and Hut 8 began as Bitcoin miners and are adding AI and high-performance computing data center businesses at existing power sites. That shift ties MARA, Riot and Hut 8 shares to both the Bitcoin price and the cost of financing data center construction, which is also why the power, cooling, and networking suppliers behind the expansion keep showing up in our free AI infrastructure report. Higher rates and repriced credit can lift the cost of each new build, which is why Moley’s concerns land directly on this corner of the market.

The CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) is up 1% to $31.95. For broad-market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.3% to $768.63, a much smaller move than the mining fund. Both funds trail MARA and Hut 8 shares, while Riot shares sit below the mining ETF’s gain.

Data Center Debt Is the Next Hurdle for MARA

Another hurdle for MARA is whether credit markets keep repricing data center debt. Hotter inflation, higher oil prices and renewed rate-hike concerns all feed into that financing cost. Traders can watch for whether Riot stock joins the rebound in MARA and Hut 8 stock.

Piper Sandler’s Overweight rating on MARA stock and its view that MARA, Riot and Hut 8 shares look attractive after the selloff give buyers a reason for confidence. Piper Sandler’s lower price targets still argue for patience. Investors should consider keeping their position sizes modest until the data center financing picture resolves.

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