Bitcoin’s price has dropped by 45% since the all-time highs notched in mid-April. Of course, the drop in BTC’s value will normally drag down companies operating in the Bitcoin ecosystem. As such, shares of Bitcoin miner Riot Blockchain (RIOT) have also significantly retreated over the past couple of months, dropping ~50% since Bitcoin’s peak.

Even so, the share price might be on the backfoot, but going by the latest production figures, the company is still exhibiting strong growth.

Riot mined 227 BTCs in May, a 220% year-over-year uptick, which at the current Bitcoin price of ~$35,000, amounts to around $8 million. When put together with April’s 206 mined Bitcoins, through the first two months of the quarter, the company mined 433 BTCs.

The figures are much better than last year’s performance but are just slightly below B.Riley's Lucas Pipes’ prior estimates for Riot. The analyst had previously expected the company to mine 801 BTC in the second quarter, which necessitates a rethink on Pipes’ part.

“As a result, we are adjusting our 2Q21 production estimate to 764 BTCs,” the 5-star analyst said, before adding, “We would note that our estimate reflects the lower total network hash rate. Over the last week, it dropped from 154 to 123 EH/s.”

That said, Pipes thinks the recent drop in the global network hashrate has been a “major tailwind for North American miners.” The analyst expects it will boost Riot’s near-term production levels and with the continued rig deployment – Riot expects an additional 1,000 S19 Pro Antminers will be shipped and installed by the quarter’s end – the analyst believes the June production numbers “will continue to grow.”

What’s more, with the recent closure of the acquisition of Whinstone US from Northern Data – which will see the addition of a 100-acre facility with long-term access 750 MW of power – Pipes remains “encouraged by Riot’s growth and strategic opportunities.”

As such, Pipes reiterated a Buy rating on RIOT stock and sticks to a $44 price target. Investors could be sitting on gains of 42%, should Pipes forecast play out as anticipated. (To watch Pipes’ track record, click here)

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One other analyst is keeping a tab on Riot’s trajectory, and with the extra Buy, the stock qualifies with a Moderate Buy consensus rating. At $42, the average price target is set to yield investors returns of 35% over the next 12 months. (See RIOT stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.