Riot Platforms (RIOT) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 24.46M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 2.43
• Revenue Growth: 34.20%
• EPS Growth: N/A
• Country: US
• Employees: 783
• Sector: Financial
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 350,207,550
• 10 Day Avg. Volume: 23,956,567
• 30 Day Avg. Volume: 24,455,007
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.39
• Price to Cash Flow (P/CF): -7.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.25
• Price Target Upside: 144.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Riot Platforms is on a positive growth trajectory with strong revenue and profitability improvements. The balance sheet is robust, though cash flow challenges exist. Technical analysis suggests bearish momentum, reflected in below-average moving averages and negative MACD. Valuation is moderate, with strategic growth in Bitcoin mining and AI/HPC noted in the earnings call. Overall, while there are significant strengths, technical weaknesses and cash flow concerns moderate the stock's outlook.

Positive Factors

Financial Strength

Riot's strong balance sheet, with 18,221 BTC at the end of January, and upside potential from HPC/AI contribute to a bullish outlook on shares.

Strategic Expansion

RIOT is actively expanding into high-performance computing (HPC) to capitalize on higher-value opportunities beyond its core Bitcoin mining operations.

Negative Factors

Financial Performance

RIOT missed our adj. EBITDA estimate despite an in line top-line, as SG&A and other expenses came in higher.

Market Conditions

Weakness in bitcoin prices and a 'sticky' high global hash rate are seen as headwinds to the mining business.

Riot Platforms Business Overview & Revenue Model

Company Description

Riot Blockchain, Inc., together with its subsidiaries, focuses on bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments. As of December 31, 2021, it operated approximately 30,907 miners. Riot Blockchain, Inc. was incorporated in 2000 and is headquartered in Castle Rock, Colorado.

How the Company Makes Money

Riot 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.06 is below the 20-day moving average (MA) of 7.55, below the 50-day MA of 9.06, and below the 200-day MA of 9.83, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 18.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIOT.

Riot Platforms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLSK	68 Neutral	$2.14B	47.63	5.30%	―	118.07%	―
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%
RIOT	63 Neutral	$2.58B	19.72	4.35%	―	34.20%	―
BMBL	57 Neutral	$407.41M	―	-44.89%	―	1.88%	-11430.00%
ANY	44 Neutral	$11.26M	―	-23.78%	―	-24.19%	72.41%
BTDR	42 Neutral	$1.70B	―	-13.88%	―	―	―

Riot Platforms Corporate Events

Riot Platforms Expands Board Amid Strategic AI Focus

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.