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Riot Platforms (RIOT)
NASDAQ:RIOT
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Riot Platforms
(NASDAQ:RIOT)
Rating:62Neutral
Price Target:―
Positive Factors
Litigation Resolution
The litigation with Rhodium is now resolved, which frees up an additional 125MWs for RIOT.
Operational Efficiency
The company's mining operations have been optimized, with nearly 90% uptime achieved, which should enhance the overall financial profile.
Strategic Expansion
Riot Platforms is benefiting from forecasted growth in Bitcoin prices and increased global hash rates, which are expected to drive revenue higher.
Negative Factors
Financial Performance
RIOT reported a miss on adj. EBITDA as SG&A and 'other COGS' increased more than expected for the quarter.
Market Conditions
Weakness in bitcoin prices and a 'sticky' high global hash rate are seen as headwinds to the mining business.
Riot Platforms (RIOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.19B
Dividend YieldN/A
Average Volume (3M)29.80M
Price to Earnings (P/E)24.4
Beta (1Y)2.23
Revenue Growth59.99%
EPS Growth-283.24%
CountryUS
Employees783
SectorFinancial
Sector Strength81
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.90
Shares Outstanding357,263,730
10 Day Avg. Volume27,661,386
30 Day Avg. Volume29,802,198
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.95
Price to Sales (P/S)0.00
P/FCF Ratio-2.13
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit19.89
Enterprise Value/Ebitda2.83
Forecast
1Y Price Target
$15.91Price Target Upside77.96% 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 Key Performance Indicators (KPIs)
Any
Average Cost to Mine Bitcoin
Reveals the cost efficiency of mining operations, crucial for understanding profitability and competitive positioning in the volatile cryptocurrency market.
Reveals the cost efficiency of mining operations, crucial for understanding profitability and competitive positioning in the volatile cryptocurrency market.
Data provided by:
Main Street Data
Main Street DataRiot Platforms Financial Statement Overview
Summary
Riot Platforms shows promising revenue growth but struggles with profitability, as indicated by negative EBIT and net income margins. The balance sheet is strong with a high equity ratio and low debt, providing financial stability. However, negative operating cash flow signals cash constraints, despite secured financing. Overall, while there's growth potential, profitability and cash flow issues need addressing.Income Statement
Riot Platforms has shown strong revenue growth with a significant increase from $376.7M to $458.7M (21.8%) in the TTM, which is positive. However, the company is struggling with profitability as evidenced by negative EBIT and net income margins in the TTM (-61.9% and -86.9% respectively). This indicates high operational costs or inefficiencies. The gross profit margin at 31.8% is reasonable, but overall, profitability is a concern given the negative net profit margin.45
Neutral
Balance Sheet
The balance sheet shows a solid equity position with an equity ratio of 79.2% in the TTM, indicating financial stability. The debt-to-equity ratio is low at 0.01, reflecting prudent financial management regarding leverage. However, the negative net income affects the return on equity, which is also negative. The company's assets have grown, but the net loss impacts overall financial health.65
Positive
Cash Flow
Operating cash flow is negative at -$319.3M in the TTM, indicating cash outflows from core operations. Free cash flow is also negative, but an improvement in cash from financing activities provides liquidity. The free cash flow to net income ratio is not favorable due to negative values, highlighting cash constraints. Despite these challenges, the company has managed to secure financing to support liquidity.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 458.75M | 376.66M | 280.68M | 259.17M | 213.24M | 12.08M | Gross Profit |
| 145.77M | 113.90M | 26.34M | 65.47M | 131.15M | 5.83M | EBIT |
| -284.23M | 153.59M | -63.05M | 329.19M | 19.77M | -8.91M | EBITDA |
| 115.21M | 324.18M | -2.79M | 25.37M | 11.71M | -7.81M | Net Income Common Stockholders |
| -398.74M | 109.40M | -49.47M | -509.55M | -7.93M | -12.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 688.50M | 412.13M | 908.35M | 339.75M | 482.66M | 235.01M | Total Assets |
| 2.61B | 3.94B | 2.05B | 1.32B | 1.53B | 280.15M | Total Debt |
| 24.35M | 613.16M | 21.34M | 22.25M | 13.44M | 0.00 | Net Debt |
| -664.15M | 335.30M | -575.82M | -208.08M | -298.88M | -223.38M | Total Liabilities |
| 135.84M | 791.62M | 163.06M | 168.52M | 173.62M | 3.08M | Stockholders Equity |
| 2.48B | 3.14B | 1.89B | 1.15B | 1.36B | 277.07M |
| Cash Flow | Free Cash Flow | ||||
| -1.42B | -1.52B | -391.05M | -352.33M | -508.36M | -52.42M | Operating Cash Flow |
| -319.26M | -255.05M | 33.09M | 530.00K | -86.38M | -11.15M | Investing Cash Flow |
| -1.37B | -1.51B | -414.77M | -354.86M | -490.33M | -32.83M | Financing Cash Flow |
| 1.24B | 1.52B | 748.52M | 272.35M | 665.64M | 259.92M |
Riot Platforms Technical Analysis
Positive
8.94
Price Trends
7.76
Positive
9.41
Negative
9.50
Negative
Market Momentum
0.37
Negative
59.66
Neutral
52.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIOT, the sentiment is Positive. The current price of 8.94 is above the 20-day moving average (MA) of 8.35, above the 50-day MA of 7.76, and below the 200-day MA of 9.50, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 52.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIOT.
Riot Platforms Risk Analysis
Riot Platforms disclosed 50 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 3 New Risks
1.
Our limited rights of legal recourse and our lack of insurance protection over our Bitcoin expose us and our stockholders to the risk of loss of our Bitcoin for which there may be no adequate remedy. Q4, 2024
2.
Banks and financial institutions may not provide banking services, or may cut off services, to businesses that engage in crypto-related activities. Q4, 2024
3.
We may be exposed to potential liability from claims relating to intellectual property rights. Q4, 2024
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 | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% | |
62 Neutral | $3.19B | 24.36 | -14.71% | ― | 59.99% | -283.24% | |
60 Neutral | $2.73B | 54.04 | -11.36% | ― | 89.47% | -737.43% | |
54 Neutral | $583.60M | ― | -46.57% | ― | -2.39% | -2961.26% | |
52 Neutral | $3.07B | ― | -32.09% | ― | ― | ― | |
47 Neutral | $24.12M | ― | -40.72% | ― | -24.19% | 72.41% |
* Financial Sector Average
Performance Comparison
RIOT
Riot Platforms
8.94
-1.43
-13.79%
ANY
Sphere 3D
0.89
-0.36
-28.80%
CLSK
Cleanspark
9.87
-7.76
-44.02%
BMBL
Bumble
5.84
-5.63
-49.08%
BTDR
Bitdeer Technologies
15.08
9.02
148.84%
Riot Platforms Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 15.06%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant operational improvements and strategic acquisitions that are expected to enhance future performance. However, the company faced substantial financial losses due to market conditions and high expenses. The balance between positive operational developments and financial challenges resulted in a neutral sentiment.Q1-2025 Updates
Positive Updates
Significant Uptime Improvement
Riot Platforms achieved an average uptime of nearly 90% in Bitcoin Mining operations, indicating enhanced operating efficiency.
Strategic Acquisition of Rhodium Assets
Riot acquired certain assets of Rhodium, including mining operations and access to 125 megawatts of contracted power, which is expected to enhance hash rate capacity and reduce operating losses.
Prudent Financial Management
Riot used limited ATM programs in 2025 and accessed alternative financing sources, including a Bitcoin collateralized credit facility with Coinbase, limiting dilution to shareholders.
AI/HPC Data Center Business Progress
Riot made significant progress in building its data center business, including land acquisitions and enhancing internal expertise, with a focus on AI/HPC data center development.
Increased Bitcoin Production and Holdings
Riot produced 1,530 Bitcoins in Q1 2025, an increase from 1,516 in the prior quarter, and increased Bitcoin holdings by 8% to 19,223.
Revenue and Gross Profit Growth
Riot's total revenue for Q1 2025 was $161.4 million, a 13% increase quarter-over-quarter, and gross profit increased to $73.6 million from $55.7 million.
Engineering Division Profitability
The Engineering division achieved a gross profit of $2.1 million, a turnaround from a gross loss of $2.4 million in the prior quarter.
Negative Updates
Negative Adjusted EBITDA and Net Loss
Riot reported a negative adjusted EBITDA of $176.3 million and a net loss of $296.4 million, driven by mark-to-market adjustments due to Bitcoin price decline.
Decline in Bitcoin Price
Bitcoin price fell from $93,354 at the end of Q4 2024 to $82,534 at the end of Q1 2025, contributing to a $208 million mark-to-market downward adjustment.
High Depreciation and Amortization Costs
Depreciation and amortization costs were $77.9 million, contributing to overall losses.
Ongoing Litigation Expenses
Cash SG&A for the quarter included one-time litigation expenses of $8.6 million, impacting financial results.
Company Guidance
During the first quarter of 2025, Riot Platforms provided key guidance on several performance metrics and strategic initiatives. The company achieved an average mining uptime of nearly 90%, significantly improving its operational efficiency. Riot's self-mining hash rate increased by 7% to 33.7 exahash, while Bitcoin production rose to 1,530 Bitcoin. Despite a global hash rate increase of 10%, Riot managed to enhance its Bitcoin yield to 7% year-to-date. The company reported a total revenue of $161.4 million, a 13% increase from the previous quarter, with a gross profit of $73.6 million and a gross margin of 46%. However, the net loss was $296.4 million, primarily due to mark-to-market adjustments. Riot ended the quarter with Bitcoin holdings of 19,223, an 8% increase from the end of 2024. The company also advanced its AI/HPC data center business, securing necessary easements for municipal water and acquiring additional land, while maintaining its strong financial position with limited use of its ATM program.Riot Platforms Corporate Events
Executive/Board Changes
Riot Platforms Renews CFO Agreement with Clear Capital
Neutral
Apr 17, 2025
On April 12, 2025, Riot Platforms, Inc. renewed its professional services agreement with Clear Capital Management Corporation to continue Mr. Colin Yee’s role as Chief Financial Officer. The amended agreement outlines procedures for severance agreements and specifies the timing and form of severance payments, which will be paid in a lump sum.
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.