Riot Blockchain Stock Declines Despite Higher Bitcoin Production

Riot Blockchain, Inc. (NASDAQ: RIOT) revealed that it produced 511 Bitcoins in March 2022, up 176% year-over-year. Despite higher production, shares of RIOT declined about 8% at the time of writing.

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Riot is a Bitcoin mining company, supporting the Bitcoin blockchain through rapidly expanding large-scale mining in the United States. The stock has tanked 21.7% so far this year.

The company informed that it held 6,062 Bitcoins as of March 31, 2022, all of which were produced by Riot’s self-mining operations. It currently has a deployed fleet of 42,919 miners with a hash rate capacity of 4.3 exahash per second (“EH/s”).

Further, Riot informed to have received 1,080 new S19j Pros in March, deployed about 4,440 S19j Pros, and has another 5,030 miners ready for deployment. It also provided an update that 5,430 S19j Pros have been shipped from Bitmain and are expected to be received this month.

By January 2023, the company expects a self-mining hash rate capacity of 12.8 EH/s. Upon full deployment of all currently contracted miners, Riot’s total self-mining fleet will consume about 370 MW of energy. Riot anticipates that nearly 97% of its self-mining fleet will consist of the S19 series miner model.

CEO’s Comments

Riot CEO Jason Les said, “These results demonstrate the advantages of employing a vertically integrated strategy, which provide the Company with more control over miner deployment and the ability to implement engineering solutions in real-time, leading to improved operational and financial efficiencies.”

Wall Street’s Take

Last month, H.C. Wainwright analyst Kevin Dede maintained a Buy rating on Riot with a price target of $50, implying 186% upside potential from current levels.

Kevin Dede’s report stated, “We see Riot leading the entire bitcoin mining field in its immersion deployment, and we believe immersion becomes the technology demanded in the future given: improved machine performance, greatly reduced mine operating cost, and enhanced useful life of the mining rigs themselves.”

The Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on six Buys and one Hold. The average RIOT price forecast of $44.14 implies an upside potential of about 152.4% from current levels.

News Sentiment

News Score for Riot is Neutral, based on 16 articles over the past seven days. All the articles have Bullish sentiment, compared to a sector average of 62%, and none have Bearish Sentiment, compared to a sector average of 38%.

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