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Riot Platforms (RIOT)
NASDAQ:RIOT
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Riot Platforms
(NASDAQ:RIOT)
63Neutral
Positive Factors
Bitcoin and Hash Rates
Riot Platforms is benefiting from forecasted growth in Bitcoin prices and increased global hash rates, which are expected to drive revenue higher.
Facility Expansion
Analyst's valuation for RIOT is based on a promising future EBITDA estimate, reflecting potential growth from facility expansions in Corsicana and Kentucky.
Negative Factors
EBITDA Discrepancy
There is a noted discrepancy between analyst estimates and management's estimates for adjusted EBITDA, highlighting a conservative approach by the analyst.
Riot Platforms (RIOT) vs. S&P 500 (SPY)
Market Cap
$2.65B
Dividend YieldN/A
Average Volume (3M)30.68M
Price to Earnings (P/E)22.0
Beta (1Y)3.25
Revenue Growth34.20%
EPS GrowthN/A
CountryUS
Employees534
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)0.34
Shares Outstanding350,207,550
10 Day Avg. Volume30,705,361
30 Day Avg. Volume30,683,597
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.78
Price to Cash Flow (P/CF)-7.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.55Price Target Upside140.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Riot Platforms Business Overview & Revenue Model
Company DescriptionRiot Platforms, Inc. (RIOT) is a leading cryptocurrency mining company that primarily focuses on Bitcoin mining operations. Headquartered in the United States, Riot Platforms is engaged in building, supporting, and operating blockchain technologies and infrastructure. The company's core services include the deployment and maintenance of advanced cryptocurrency mining hardware, which helps in securing the Bitcoin network and processing transactions.
How the Company Makes MoneyRiot Platforms makes money by mining Bitcoin, which is the process of validating and recording transactions on the Bitcoin blockchain in exchange for newly minted Bitcoin and transaction fees. The company operates large-scale mining facilities equipped with high-performance computing hardware designed to optimize mining efficiency and profitability. Its revenue model is heavily reliant on the market price of Bitcoin, as higher prices can significantly increase its earnings. Additionally, Riot Platforms may generate revenue through strategic partnerships, investments in blockchain technologies, and potentially through hosting services where it provides infrastructure for third-party miners. The company's earnings are influenced by factors such as electricity costs, hardware efficiency, and the overall difficulty level of Bitcoin mining.
Riot Platforms Financial Statement Overview
Summary
Riot Platforms exhibits strong revenue growth and improved profitability metrics, indicating a positive trajectory. The balance sheet is robust with low leverage and high equity, which bodes well for financial stability. However, cash flow challenges, particularly in operating cash flow and free cash flow, need to be addressed to ensure sustainable growth.Income Statement
Riot Platforms has demonstrated strong revenue growth with a significant increase from $280.68M in 2023 to $376.66M in 2024. The gross profit margin improved dramatically, indicating better cost management. The net profit margin also turned positive, showcasing a turnaround in profitability. EBIT and EBITDA margins have shown substantial improvements, highlighting enhanced operational efficiency.78
Positive
Balance Sheet
The company maintains a high equity ratio due to strong stockholders' equity, indicating financial stability. The debt-to-equity ratio remains low, suggesting prudent debt management. The return on equity has improved with the rise in net income, reflecting effective utilization of shareholder funds.85
Very Positive
Cash Flow
Operating cash flow has decreased, which could indicate challenges in cash generation from core operations. However, the company has a strong cash position. The free cash flow remains negative, which may pose challenges for future investments without external financing.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 376.66M | 280.68M | 259.17M | 213.24M | 12.08M | Gross Profit |
| 376.66M | 26.34M | 65.47M | 131.15M | 5.83M | EBIT |
| 153.59M | -63.05M | 329.19M | 19.77M | -8.91M | EBITDA |
| 324.18M | -2.79M | 25.37M | 11.71M | -7.81M | Net Income Common Stockholders |
| 109.40M | -49.47M | -509.55M | -7.93M | -12.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 412.13M | 908.35M | 339.75M | 482.66M | 235.01M | Total Assets |
| 3.94B | 2.05B | 1.32B | 1.53B | 280.15M | Total Debt |
| 28.85M | 21.34M | 22.25M | 13.44M | 0.00 | Net Debt |
| -249.01M | -575.82M | -208.08M | -298.88M | -223.38M | Total Liabilities |
| 791.62M | 163.06M | 168.52M | 173.62M | 3.08M | Stockholders Equity |
| 3.14B | 1.89B | 1.15B | 1.36B | 277.07M |
| Cash Flow | Free Cash Flow | |||
| -495.39M | -391.05M | -352.33M | -508.36M | -52.42M | Operating Cash Flow |
| -255.05M | 33.09M | 530.00K | -86.38M | -11.15M | Investing Cash Flow |
| -1.51B | -414.77M | -354.86M | -490.33M | -32.83M | Financing Cash Flow |
| 1.52B | 748.52M | 272.35M | 665.64M | 259.92M |
Riot Platforms Technical Analysis
Negative
7.72
Price Trends
11.13
Negative
11.31
Negative
10.12
Negative
Market Momentum
-1.02
Positive
32.08
Neutral
14.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIOT, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 9.80, below the 50-day MA of 11.13, and below the 200-day MA of 10.12, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 14.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIOT.
Riot Platforms Risk Analysis
Riot Platforms disclosed 51 risk factors in its most recent earnings report. Riot Platforms reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Riot Platforms Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $2.65B | 21.95 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.64B | 9.77 | 18.84% | ― | 69.38% | 30.30% | |
52 Neutral | $331.58M | 34.95 | -1.29% | ― | 167.47% | ― | |
49 Neutral | C$1.72B | 3.54 | 2.56% | ― | 199.41% | ― | |
42 Neutral | $1.11B | ― | -7.61% | ― | 19.26% | -14.10% | |
37 Underperform | $30.51M | ― | 242.25% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
RIOT
Riot Platforms
7.72
-3.90
-33.56%
MARA
Marathon Digital Holdings
13.32
-6.87
-34.03%
BTBT
Bit Digital
2.37
0.13
5.80%
TSE:HUT
Hut 8
17.08
7.46
77.55%
CIFR
Cipher Mining
3.18
0.04
1.27%
ARBK
Argo Blockchain
0.42
-1.37
-76.54%
Riot Platforms Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -22.72% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Riot Platforms demonstrated strong growth in hash rate and Bitcoin holdings, with significant revenue and profit increases. The potential in AI/HPC opportunities presents a promising new revenue stream. However, challenges in decreased Bitcoin production and increased mining costs were noted. Despite these challenges, the positive highlights outweigh the lowlights.Highlights
Exponential Hash Rate Growth
Riot increased its self-mining hash rate from 12.4 exahash to 31.5 exahash, representing a 154% increase over 2024, significantly outpacing the global hash rate increase of 67%.
Record Bitcoin Holdings
Riot ended 2024 with 17,722 Bitcoin, a 141% increase from the 7,362 Bitcoin held at the end of 2023, worth $1.7 billion based on the Bitcoin price of $93,354.
Revenue and Profit Surge
Total revenue for 2024 was $376.7 million, a 34% increase year-over-year, and gross profit was $147.6 million, up from $97.6 million in 2023.
Successful Convertible Notes Offering
Riot issued convertible senior notes, lowering cost of capital and expanding institutional investor base, using proceeds to acquire Bitcoin and enhance Bitcoin yield.
AI/HPC Opportunities
Riot is exploring AI/HPC opportunities to maximize asset value, with strategic plans to capitalize on increasing demand for large-scale power access by hyperscalers.
Lowlights
Decreased Bitcoin Production
Riot produced 4,828 Bitcoin in 2024, a 27% decrease from the previous year, primarily due to the 2024 halving event.
Increased Operating Costs
Power costs increased from $0.031 to $0.038 per kilowatt-hour, leading to a higher cost to mine Bitcoin, impacting margins.
Engineering Business Revenue Decline
Riot's engineering business generated $38.5 million in revenue in 2024, down from $64.3 million in 2023, due to delays in a large government contract.
Company Guidance
During the Riot Platforms Fourth Quarter 2024 and Full Year 2024 earnings call, the company emphasized its strategic focus on growing its Bitcoin mining operations and exploring opportunities in AI/HPC. Riot increased its self-mining hash rate by 154% to 31.5 exahash and ended 2024 with 17,722 Bitcoin, marking a 141% increase from the previous year, valued at $1.7 billion. The company reported a total revenue of $376.7 million, a 34% year-over-year increase, driven by higher Bitcoin prices. Riot's gross profit was $147.6 million, with a non-GAAP adjusted EBITDA of $463.2 million. The company highlighted its Bitcoin yield strategy, achieving a 39% increase in Bitcoin holdings per share. Riot also moved into AI/HPC opportunities to leverage its power assets and expects to grow its Bitcoin mining hash rate by approximately 22% in 2025.Riot Platforms Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Riot Platforms Expands Board Amid Strategic AI Focus
Positive
Feb 13, 2025
On February 12, 2025, Riot Platforms expanded its Board of Directors to six members, appointing Jaime Leverton, Douglas Mouton, and Michael Turner as new directors. This change follows the retirement of Hannah Cho and Hubert Marleau from the board. The new directors bring expertise in AI/HPC conversion, data center operations, and real estate, aligning with the company’s strategic focus on maximizing the value of its assets, particularly at its Corsicana Facility in Texas, for AI and high-performance computing uses. Riot Platforms has engaged financial advisors Evercore and Northland Capital to explore potential AI/HPC partnerships, reflecting increased interest from potential partners. These board changes and strategic evaluations are expected to enhance Riot’s positioning in the industry and potentially deliver substantial value to shareholders.
Private Placements and FinancingBusiness Operations and Strategy
Riot Platforms Expands Bitcoin Holdings and Strategy
Positive
Dec 16, 2024
Riot Platforms, Inc. reported its BTC Yield KPI, indicating a year-to-date yield of 37.2% as of December 13, 2024. The company uses this metric to evaluate its strategy of acquiring and holding Bitcoin to enhance stockholder value. Additionally, Riot closed its $594.4 million convertible senior notes offering, and used the proceeds to purchase approximately 667 Bitcoin, increasing its total holdings to 17,429 Bitcoin, suggesting a significant expansion of its Bitcoin reserves and potential impact on its financial strategy.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.