Shares of Riot Platforms (RIOT) are down at the time of writing after the Bitcoin (BTC-USD) miner provided a production update. In fact, August Bitcoin production dropped 3% year-over-year to 322 BTC. The company, along with the broader industry, is likely still feeling the impact of the April Halving (an event that reduced the reward for mining Bitcoin).
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It also did not help that the hot Texas summer forced the company to be more strategic with its power usage, which likely led to the 13% month-over-month decrease. Nevertheless, there were some bright spots.
For starters, the firm saw a 224% year-over-year increase in its average hash rate (the number of calculations a miner can perform per second) to 14.5 EH/s. In addition, CEO Jason Les mentioned that the company remains on track to achieve its third-quarter and year-end hash rate targets of 28 EH/s and 36 EH/s, respectively. This expected growth can be attributed to Riot’s newly acquired Kentucky facilities and the almost complete Building B1 at its Corsicana Facility.
The company now holds 10,019 BTC worth roughly $564.5 million at the time of writing, or slightly more than a quarter of its $2.05 billion market cap. Interestingly, RIOT is trading at a price-to-book value of 0.99, according to TipRanks data, which suggests that the company is slightly undervalued since it is below one.
Is RIOT a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RIOT stock based on 10 Buys assigned in the past three months, as indicated by the graphic below. After a 40% decline in its share price over the past year, the average RIOT price target of $16.95 per share implies 153% upside potential.
