Riot Platforms (RIOT) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: N/A
• Average Volume (3M): 42.96M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 2.41
• Revenue Growth: 59.99%
• EPS Growth: -283.24%
• Country: US
• Employees: 783
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): -0.90
• Shares Outstanding: 357,263,730
• 10 Day Avg. Volume: 52,911,483
• 30 Day Avg. Volume: 42,957,976
• PEG Ratio: 0.03
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.02
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 28.76
• Enterprise Value/Ebitda: 4.09
• 1Y Price Target: $16.80
• Price Target Upside: 14.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 57 Neutral
• Price Target: $14.50 ▼(-1.29%Downside)

Riot Platforms demonstrates significant growth potential through revenue increases and strategic initiatives, particularly in Bitcoin mining and AI/HPC data centers. However, these strengths are offset by profitability challenges, negative cash flows, and valuation concerns. Technical analysis shows positive momentum but warns of overbought conditions, suggesting caution. Overall, the company presents a mixed outlook, with significant growth opportunities tempered by financial and market risks.

Positive Factors

Site Attractiveness

Riot's Corsicana site is described as one of the most attractive HPC sites.

Strategic Expansion

Management is highly focused on transitioning to HPC, which indicates strategic forward-thinking.

Negative Factors

Adjusted EBITDA Discrepancy

There is a noted discrepancy between analyst estimates and management's estimates for adjusted EBITDA, highlighting a conservative approach by the analyst.

Earnings Performance

RIOT reported a miss on adj. EBITDA as SG&A and 'other COGS' increased more than expected for the quarter.

Riot Platforms Business Overview & Revenue Model

Company Description

Riot Platforms, Inc. (RIOT) is a leading cryptocurrency mining company based in the United States. The company focuses primarily on Bitcoin mining, leveraging its strategically located data centers to optimize mining operations. Riot Platforms aims to be one of the most efficient and cost-effective Bitcoin miners in the industry, employing advanced technologies and sustainable practices. The company is committed to expanding its operations and enhancing its infrastructure to increase its mining output and overall competitiveness in the cryptocurrency market.

How the Company Makes Money

Riot Platforms makes money primarily through its Bitcoin mining operations. The company earns revenue by solving complex cryptographic puzzles, which validates Bitcoin transactions and adds them to the blockchain. For each block successfully mined, Riot receives a fixed Bitcoin reward, which constitutes a significant portion of its revenue. Additionally, Riot may generate revenue by selling the Bitcoin it mines on cryptocurrency exchanges, taking advantage of favorable market prices. The company might also engage in strategic partnerships or investments to enhance its mining capabilities and increase operational efficiency. Factors such as energy cost management, technological advancements, and scaling of operations play crucial roles in Riot's profitability.

Riot Platforms Financial Statement Overview

Summary

Riot Platforms shows promising revenue growth but struggles with profitability. Negative EBIT and net income margins, along with negative operating cash flow, reflect financial challenges. However, a strong balance sheet provides some stability.

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.

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.

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.

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	113.90M	26.34M	65.47M	131.15M	5.83M
EBITDA	324.18M	-2.79M	25.37M	11.71M	-7.81M
Net Income	109.40M	-49.47M	-509.55M	-7.93M	-12.67M
Balance Sheet
Total Assets	3.94B	2.05B	1.32B	1.53B	280.15M
Cash, Cash Equivalents and Short-Term Investments	412.13M	908.35M	339.75M	482.66M	235.01M
Total Debt	613.16M	21.34M	22.25M	13.44M	0.00
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	-1.52B	-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: Positive
• Last Price: 14.69
• 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 14.69 is above the 20-day moving average (MA) of 12.50, above the 50-day MA of 10.59, and above the 200-day MA of 10.21, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 77.69 is Negative, neither overbought nor oversold. The STOCH value of 73.64 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
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
CLSK	58 Neutral	$3.47B	54.04	-11.36%	―	89.47%	-737.43%
RIOT	57 Neutral	$5.25B	24.36	-14.71%	―	59.99%	-283.24%
BTDR	51 Neutral	$2.98B	―	-32.09%	―	―	―
BMBL	49 Neutral	$867.65M	―	-46.57%	―	-2.39%	-2961.26%
ANY	47 Neutral	$18.18M	―	-40.72%	―	-24.19%	72.41%

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.

The most recent analyst rating on (RIOT) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Riot Platforms stock, see the RIOT Stock Forecast page.