Shares of Riot Platforms (RIOT) sank in after-hours trading after the Bitcoin miner reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at $0.65, which smashed analysts’ consensus estimate of -$0.18 per share.
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In addition, sales increased by 118.6% year-over-year, with revenue hitting $153 million. Nevertheless, this missed analysts’ expectations of $156.3 million. The change in revenue was almost entirely driven by a 152% jump in Bitcoin Mining revenue to $140.9 million. In addition, Riot produced 1,426 Bitcoin in Q2 versus the 844 it produced during the same period last year. However, the average cost to mine Bitcoin also rose, going from $25,329 per coin to $48,992.
Looking forward, management now expects the hash rate capacity (the number of calculations a miner can perform per second) to reach 40 EH/s by the end of this year. Currently, the hash rate sits at 35.4 EH/s and has been growing very fast over the past several years, as demonstrated in the image below.
Is Riot Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RIOT stock based on nine Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIOT price target of $17.20 per share implies almost 29% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
