Riot Platforms, Inc. (RIOT) has disclosed a new risk, in the Supply Chain category.
Riot Platforms, Inc. faces significant counterparty risks associated with its reliance on custodians NYDIG and Coinbase for safeguarding its Bitcoin assets through cold storage. Although these custodians offer agreements that suggest reasonable protection by holding digital assets in segregated accounts, the company acknowledges potential vulnerabilities if a custodian breaches the agreement, ceases operations, or declares insolvency. In such scenarios, Riot Platforms might encounter delays or difficulties in accessing its assets, posing a risk to its financial stability and market stock price. The lack of immediate backup custodians further exacerbates this risk, as the company would need to manage self-custody until a new custodian is contracted, potentially disrupting its business operations.
Overall, Wall Street has a Strong Buy consensus rating on RIOT stock based on 10 Buys and 1 Hold.
To learn more about Riot Platforms, Inc.’s risk factors, click here.