Riot Platforms (RIOT) AI Stock Analysis

• Market Cap: $6.47B
• Dividend Yield: N/A
• Average Volume (3M): 38.75M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 2.42
• Revenue Growth: 93.46%
• EPS Growth: -166.22%
• Country: US
• Employees: 783
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.57
• Shares Outstanding: 369,623,170
• 10 Day Avg. Volume: 45,267,415
• 30 Day Avg. Volume: 38,751,605
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 8.86
• Enterprise Value/Gross Profit: 96.25
• Enterprise Value/Ebitda: 10.36
• 1Y Price Target: $20.43
• Price Target Upside: 13.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 53 Neutral
• Price Target: $12.50 ▼(-30.52% Downside)

Riot Platforms' overall score is driven by strong strategic initiatives and a solid balance sheet, despite profitability and cash flow challenges. The earnings call provided positive insights into future growth, but valuation concerns and technical indicators suggest caution.

Positive Factors

Revenue Growth

The company's ability to grow revenue consistently indicates a strong market position and effective business strategies, which are crucial for long-term success.

Operational Efficiency

Improved hash rate utilization reflects enhanced operational efficiency, which can lead to better cost management and profitability over time.

Strong Balance Sheet

A strong balance sheet with significant liquidity provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder long-term growth and shareholder value, as they may limit reinvestment capabilities and financial resilience.

Cash Flow Issues

Negative cash flow indicates potential liquidity issues, which can impact the company's ability to fund operations and invest in future growth.

Decreased Bitcoin Production

A decline in Bitcoin production can affect revenue and profitability, especially if the trend continues, impacting the company's core business model.

Riot Platforms Business Overview & Revenue Model

Company Description

Riot Platforms, Inc., together with its subsidiaries, operates as a Bitcoin mining company in the United States. The company operates in two segments, Bitcoin Mining and Engineering. It offers comprehensive and critical infrastructure for institutional-scale Bitcoin mining facilities in Rockdale and Navarro counties, Texas; and two Bitcoin mining sites in Paducah, Kentucky. The company also designs and manufactures power distribution equipment and custom engineered electrical products; and electricity distribution product design, manufacturing, and installation services for large-scale commercial and governmental customers, as well as data center, power generation, utility, water, industrial, and alternative energy markets. The company was founded in 2000 and is based in Castle Rock, Colorado.

How the Company Makes Money

Riot Platforms generates revenue primarily through the mining of Bitcoin. The company operates a large fleet of ASIC (Application-Specific Integrated Circuit) miners, which are specialized hardware designed to efficiently solve the cryptographic puzzles required for Bitcoin mining. The revenue model is driven by the number of Bitcoins mined, which fluctuates based on the mining difficulty and the Bitcoin price. Additionally, Riot has diversified its revenue streams by engaging in Bitcoin sales, where mined Bitcoins are sold on the open market to realize profits. The company also benefits from strategic partnerships with energy providers to secure low-cost electricity, which is a critical factor in its profitability. Furthermore, Riot has made investments in infrastructure and technology to improve operational efficiency, thereby enhancing its overall margins.

Riot Platforms Financial Statement Overview

Summary

Riot Platforms shows revenue growth but struggles with profitability and cash flow. The low debt level is positive, yet negative net income and cash flow issues indicate financial difficulties. The high EBITDA margin suggests operational efficiency.

Income Statement

Riot Platforms has shown a positive revenue growth rate of 18.09% in the TTM, indicating expansion. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -17.51% and a negative EBIT margin. The gross profit margin is low at 9.21%, suggesting high costs relative to revenue. The EBITDA margin is strong at 85.52%, indicating good operational efficiency before accounting for depreciation and amortization.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.26, indicating a conservative use of debt. However, the return on equity is negative at -3.13%, reflecting challenges in generating returns for shareholders. The equity ratio is solid, suggesting a strong equity base relative to total assets.

Cash Flow

Riot Platforms faces significant cash flow challenges, with a negative operating cash flow and free cash flow. The free cash flow to net income ratio is high at 2.91, indicating that free cash flow is significantly higher than net income, which can be a concern if driven by non-operational factors. The operating cash flow to net income ratio is negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	541.72M	376.66M	280.68M	259.17M	213.24M	12.08M
Gross Profit	49.88M	113.90M	26.34M	65.47M	131.15M	5.83M
EBITDA	463.30M	324.18M	-2.79M	25.37M	11.71M	-7.81M
Net Income	-94.84M	109.40M	-49.47M	-509.55M	-7.93M	-12.67M
Balance Sheet
Total Assets	4.29B	3.94B	2.05B	1.32B	1.53B	280.15M
Cash, Cash Equivalents and Short-Term Investments	392.76M	412.13M	908.35M	339.75M	482.66M	235.01M
Total Debt	869.52M	613.16M	21.34M	22.25M	13.44M	0.00
Total Liabilities	989.49M	791.62M	163.06M	168.52M	173.62M	3.08M
Stockholders Equity	3.30B	3.14B	1.89B	1.15B	1.36B	277.07M
Cash Flow
Free Cash Flow	-1.48B	-1.52B	-391.05M	-352.33M	-508.36M	-52.42M
Operating Cash Flow	-508.07M	-255.05M	33.09M	530.00K	-86.38M	-11.15M
Investing Cash Flow	-1.03B	-1.51B	-414.77M	-354.86M	-490.33M	-32.83M
Financing Cash Flow	1.39B	1.52B	748.52M	272.35M	665.64M	259.92M

Riot Platforms Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 17.99 is above the 20-day moving average (MA) of 15.55, above the 50-day MA of 13.85, and above the 200-day MA of 10.88, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 71.92 is Negative, neither overbought nor oversold. The STOCH value of 61.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIOT.

Riot Platforms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUFU	69 Neutral	610.02M	13.25	33.22%	―	39.84%	-10.81%
ACGP	64 Neutral	711.91M	13.31	―	6.52%	54.17%	64.76%
BTBT	62 Neutral	1.01B	-9.15	6.11%	―	14.65%	-240.80%
MARA	56 Neutral	6.53B	15.80	14.17%	―	41.32%	-12.83%
CIFR	54 Neutral	5.56B	-31.93	-20.56%	―	0.11%	-914.42%
RIOT	53 Neutral	$6.47B	24.36	-3.23%	―	93.46%	-166.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Riot Platforms Corporate Events

Riot Platforms Expands Credit Agreement with Coinbase

On May 19, 2025, Riot Platforms, Inc. entered into an amended and restated credit agreement with Coinbase Credit, Inc., increasing the principal amount from $100 million to $200 million and extending the availability period. This agreement aims to enhance Riot Platforms’ financial flexibility and operations by allowing more borrowings and securing obligations with financial assets, including bitcoin and cash.