Riot Platforms (RIOT) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: N/A
• Average Volume (3M): 27.23M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 2.29
• Revenue Growth: 34.20%
• EPS Growth: N/A
• Country: US
• Employees: 783
• Sector: Financial
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 350,287,540
• 10 Day Avg. Volume: 33,011,277
• 30 Day Avg. Volume: 27,228,218
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 32.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.91
• Price Target Upside: 89.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Riot Platforms shows strong revenue growth and strategic operational improvements, but faces profitability and cash flow challenges. The stock's technical indicators suggest mixed signals with short-term momentum but long-term challenges. The valuation reflects moderate expectations for future earnings. Strategic initiatives in AI and data centers could enhance long-term positioning, but financial stability concerns remain.

Positive Factors

Expansion and Strategic Growth

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

Financial Strength and Stability

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

Market Positioning

Riot Platforms is trading at a multiple that suggests potential for value appreciation as the company expands its operations.

Negative Factors

Bitcoin Market Challenges

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

Cost Management

Operating costs came in higher than previous guidance, partially impacted by non-recurring M&A expenses.

Financial Performance Concerns

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

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 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.

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
	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
613.16M	21.34M	22.25M	13.44M	0.00
	Net Debt
335.30M	-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
-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: 8.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 8.39 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.80, and below the 200-day MA of 9.65, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 74.38 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
CLSK	65 Neutral	$2.47B	58.85	5.30%	―	118.07%	―
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%
RIOT	62 Neutral	$3.00B	24.36	4.35%	―	34.20%	―
BMBL	59 Neutral	$458.34M	―	-44.89%	―	1.88%	-11430.00%
BTDR	49 Neutral	$1.96B	―	-13.88%	―	―	―
ANY	47 Neutral	$14.88M	―	-23.78%	―	-24.19%	72.41%

Riot Platforms Corporate Events

Riot Platforms Renews CFO Agreement with Clear Capital

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.

Spark’s Take on RIOT Stock

According to Spark, TipRanks’ AI Analyst, RIOT is a Neutral.

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.

To see Spark’s full report on RIOT stock, click here.

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.