Compass Point sets Antalpha stock Buy rating, $20 target

Monday, Compass Point began coverage on Antalpha Platform Holding Co. (NASDAQ: ANTA) with a positive outlook, assigning a Buy rating and setting a price target of $20.00, representing significant upside from the current price of $12.77. The research firm’s analysts underscored the company’s role in providing financing to Bitcoin miners and institutional investors, highlighting its strategic partnership with Bitmain, a dominant player in the cryptocurrency mining industry. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a market capitalization of $295 million.

Antalpha’s business model, which includes overcollateralized mining loans with a loan-to-value (LTV) ratio between 50% and 80%, was noted as a strength. The majority of the collateral, which is 80%, is held in Bitcoin (BTC), a factor that Compass Point believes adds to the company’s robustness due to the ease of liquidating collateral if necessary. The company maintains a healthy current ratio of 1.05, though InvestingPro data shows relatively high leverage with a debt-to-equity ratio of 8.97.

The analysts pointed out that Antalpha is the preferred financing partner of Bitmain, which commands a 70-80% market share in the mining sector. This relationship is considered beneficial as the global hashrate continues to climb, indicating increased mining activity and potential growth for Antalpha.

Compass Point’s projection for Antalpha’s revenue growth is particularly bullish, with an expected compound annual growth rate (CAGR) of 71% through 2026. This optimism is supported by the company’s impressive revenue growth of 321% over the last twelve months. Despite these projections, analysts observed that the current valuation of Antalpha at 6.5 times its EBITDA multiple does not appear to reflect its potential for high growth, though it maintains a high P/E ratio of 52.6x. Get access to more detailed valuation metrics and 8 additional key insights with InvestingPro.

The firm anticipates that as Antalpha’s EBITDA increases significantly in 2025, the company’s valuation will adjust to mirror a higher growth trajectory. The adjustment is expected as Antalpha establishes more credibility with public market investors, which in turn could lead to a reevaluation of the company’s stock value.

In other recent news, Antalpha Platform Holding Company has announced a strategic allocation of up to $40 million in Tether Gold (XAUt) to enhance its treasury strategy and diversify its institutional collateral base. This initiative aims to bolster the company’s resilience against economic fluctuations and support its financial operations. Antalpha also plans to integrate XAUt into its offerings, enhancing its Multi-Party Computation capabilities and launching a portal for real-time asset transparency. Additionally, Antalpha has begun trading on the Nasdaq Capital Market under the ticker symbol "ANTA," with an initial public offering (IPO) price of $12.80 per share. The company released 3,850,000 ordinary shares, anticipating gross proceeds of approximately $49.3 million, which could rise if underwriters exercise their over-allotment option. The proceeds are earmarked for product development, global expansion, and treasury management, including investments in Bitcoin and digital gold. Roth Capital Partners (WA:CPAP) and Compass Point are serving as joint book-running managers for the IPO. These developments reflect Antalpha’s commitment to long-term growth and innovation in the digital asset sector.

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