American Bitcoin's Mining Economics Could Be Its Edge – This Analyst Sees A Potential 185% Upside

American Bitcoin (ABTC) stock edged higher in the early morning on Monday after H.C. Wainwright called the company a “pure-play Bitcoin accumulation platform” and set a $22 price target.

In a note to investors cited by TheFly, H.C. Wainwright assumed coverage of the stock with a ‘Buy’ rating. Against Friday’s close of $7.73, the $22 target implies about 185% upside.

The firm’s case rested on cost. H.C. Wainwright explained that American Bitcoin had a structural cost advantage that kept its production costs among the lowest in the industry. It added that the company could grow its share of the market faster as it deployed more mining machines. The company’s own numbers supported that view. American Bitcoin spent about $36,500 to mine each Bitcoin (BTC) in the second quarter. Bitcoin was trading near $83,500 at the time of writing, more than double that cost.

ABTC’s stock was up over 1%, in premarket trading. On Stocktwits, retail sentiment around ABTC in the ‘extremely bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.

H.C. Wainwright is more optimistic than the rest of Wall Street. According to Koyfin data, ABTC analysts have a 12-month average price target of $14.67, which would be roughly 90% upside from Friday’s close.