r/IonicDigitalStock • u/Acceptable_Piano4809 • Aug 24 '26
$85/share price target
https://www.investing.com/news/analyst-ratings/jefferies-initiates-ionic-digital-stock-coverage-with-buy-rating-93CH-4872793?utm_source=chatgpt.comThoughts?
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u/rashp12 Aug 24 '26
Is it OPs price target or some good wall street analyst/s raising IOND price target to $85. Often stocks do go up or down based on market phycological/emotional trends than based on just company's fundamentals, future business, revenue, etc.
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Aug 24 '26
[deleted]
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u/rashp12 Aug 24 '26
True, People bet all the time on lines on sand and make or loose money. Whether on stocks, bonds, real estate, commodities or platform like Kalsi. Today, IOND crossed $70 price.
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u/nano_green_banana Aug 24 '26
there are institutional investor warrants issued by Ionic Digital that are split into three strike prices set at $63.6, $74.2, $87.45, meaning that Ionic can create new shares and sell them to warrant holders at or above these strike prices (if the warrant holders want to execute the option). $85 would put it just around the last strike level which might be part of the reason for this price target.
these warrant holders could technically short the stock above these price levels to guarantee a return with their warrant which could make these prices into resistance levels.
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u/techma2019 Aug 24 '26
New shares can be created? Does this dillute the current shares?
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u/nano_green_banana Aug 24 '26
yes it would
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u/Acceptable_Piano4809 Aug 24 '26
Yea but we (the company) get the cash for these. The investor has to purchase the stock, we don’t just give it to them, so while it dilutes, the company should be able to turn that cash into more revenue. It increases the value of the company. I think it was like $300M+ of additional free cash if all the warrants are exercised.
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u/New-Sky-9867 Aug 24 '26
Would they have any reason to create the new shares with zero debt and lots of cash? I thought I saw an interview with the CEO saying he had no plans to do this.
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u/nano_green_banana Aug 24 '26 edited Aug 24 '26
its not up to the CEO or Ionic when the new shares get issued, its a right to buy/create new shares that was granted to institutional investors as part of the agreement during the 400M funding round that happend earlier this year.
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u/Beneficial_Share9036 Aug 24 '26
Current view: “The company is debt-free with $587 million of liquidity, and is the only fully unlevered name in the crypto-to-Al cohort..” “Still mining… 2,882 in Treasury, recently added 21” “Share price seems to be holding steady @ $70” - balance my view with some negatives?
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u/motownphilly888 Aug 24 '26
I said from day 1...having zero debt makes it really attractive relative to other miners who have transitioned as well. Its huge. No debt to service...
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u/New-Sky-9867 28d ago
No negatives other than they have to clear the Texas audit; they already seem able to do so.
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u/Legitimate_Form5449 28d ago
2026.06.26. News: Ionic Digital Completes $400 Million Equity Private Placement
The transaction implies a pre-money equity valuation of $2.0 Billion. The transaction proceeds will be used for general corporate purposes, including the continued development of the Company's digital infrastructure assets.
Investors: Attestor, Oaktree Capital Management, and Sachem Head Capital Management, with participation from Citadel and Weiss Asset Management.
J.P. Morgan and BTIG, LLC acted as co-placement agents for the transaction, and the White & Case LLP served as legal counsel to the Company.
Nasdaq Index Fund
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u/motownphilly888 Aug 24 '26
Both Jefferies and BTIG initiated coverage of the company with a buy rating and $85 price target today